2022-10-28 09:50

Market Update - 27 October 2022 USD/JPY continues losing ground for the third straight day and drops to a multi-week low. The recent suspected intervention by the BoJ underpins the JPY and exerts some pressure. An uptick in the US bond yields revives the USD demand and helps limit any further losses. Traders now eye US macro releases for a fresh impetus ahead of the BoJ meeting on Friday. (FXStreet) The index attempts a mild recovery below 110.00 on Thursday. US yields regain some poise and trade with modest gains. Durable Goods Orders, Flash Q3 GDP, Initial Claims next on tap. The greenback, when tracked by the USD Index (DXY), manages to gather some traction and rebounds from earlier lows near 109.50 on Thursday. (FXStreet) GBP/USD eases from a fresh multi-week high amid a modest USD recovery on Thursday. Reduced bets for more aggressive Fed rate hikes could act as a headwind for the buck. The fundamental backdrop supports prospects for the emergence of some dip-buying. (FXStreet) Silver fails to find acceptance above the 100-day SMA and edges lower on Thursday. Break below the 38.2% Fibo. level should pave the way for a further intraday decline. A sustained move beyond the $19.55-60 confluence will be seen as a trigger for bulls. (FXStreet) USD/CAD edges higher on Thursday, though the uptick lacks any follow-through buying. The less hawkish BoC decision, softer oil prices undermine the loonie and offer support. The USD languishes near the monthly low and acts as a headwind ahead of the US GDP. (FXStreet) Prices of natural gas charted modest losses after rebounding from daily lows near $5.30 on Wednesday. The bounce was on the back of rising open interest, leaving the door open to the continuation of this move in the very near term and with the immediate target at the 200-day SMA, today around $6.72 mark per MMBtu. (FXStreet) USD/CHF has dropped to near 0.9850 as DXY has refreshed day’s low at 109.54. The risk-on impulse has rebounded as S&P500 futures have recovered majority of Wednesday’s losses. US economic calendar is full of critical events and will provide guidance for further action. (FXStreet) A combination of factors lifts AUD/USD to a fresh three-week high on Thursday. Reviving bets for more aggressive rate hikes by the RBA underpins the aussie. Expectations for a less hawkish Fed weigh on the USD and remain supportive. (FXStreet) EUR/USD is breathing a sigh of relief on the ECB Thursday. ECB is set to hike rates by 75 bps, Lagarde’s presser holds the key. Euro bulls run into the bearish 100DMA at 1.0090, where next? EUR/USD is trading almost unchanged on the day at around 1.0075 ahead of the European open. Investors take a pause and refrain from placing any directional bets on the pair, awaiting the critical ECB rate hike decision and the US advance Q3 GDP release. (FXStreet) NZD/USD has climbed above 0.5860 after a consolidation breakout as the risk-on profile recovers. The DXY has remained subdued in the entire Tokyo session ahead of key US economic data. Higher projections for durable goods demand in times of escalating core CPI could delight the Fed. (FXStreet) USD/INR has displayed a vertical rebound from around 82.00 as oil prices soar. Market mood has turned extremely quiet ahead of US economic data. Fed’s preferred inflation tool, US core PCE could drop to 4.5%. (FXStreet) WTI Crude oil prices are nearly unchanged in Asia-Pacific trading as equity indexes across the region trade higher against a softer US Dollar. On Wednesday, WTI and Brent crude prices rose over 3% as a pullback in the US Dollar, and inventory data aided the commodity. A drop in Treasury yields reflected easing FOMC rate hike bets as traders mull cooling economic data points. (DailyFX) The price of gold appears to be reversing course following the failed attempt to test the yearly low ($1615), but the precious metal may largely mirror the price action from earlier this month if it struggles to push above the moving average. As a result, the price of gold may continue to track the negative slope in the moving average with the Federal Reserve on track to implement higher interest rates next month, and the update to the US Personal Consumption Expenditure (PCE) Price Index may encourage Chairman Jerome Powell and Co. to retain their existing approach in combating inflation as the Fed’s preferred gauge for inflation is expected to widen for the second consecutive month. (DailyFX) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2022-10-28 09:50

Market Update - 28 October 2022 USD/JPY extends its relentless rally in the European session this Thursday, as the Bank of Japan’s (BOJ) status-quo on its monetary policy settings combined with the dovish rhetoric from Governor Haruhiko Kuroda revived the yen selling. Meanwhile, the extended recovery in the US dollar across its major peers, in the wake of the upbeat American advance Q3 GDP and end-of-the-week flows, also aids the renewed upside the pair. (FXStreet) The index adds to Thursday’s advance and approaches 111.00. The risk complex remains on the defensive following the ECB event. Core PCE, Final Consumer Sentiment next on tap in the docket. The greenback picks up extra pace in the second half of the week and approaches the key 111.00 region when measured by the USD Index (DXY) on Friday. (FXStreet) Gold price takes offers to refresh intraday low, pares weekly gains. DXY traces yields to extend previous day’s rebound ahead of US Core PCE Inflation data for September. Risk remains sour amid inflation/growth fears even as central bank policy hawks retreat. Gold price (XAU/USD) consolidates the second weekly upside as bears poke the $1,658 level heading into Friday’s European session. In doing so, the yellow metal traces the recent downside in commodities and Antipodeans amid the US dollar’s rebound. (FXStreet) Thursday’s strong advance in prices of natural gas was on the back of a small uptick in open interest, which suggests that further upside could be in store for the commodity in the very near term. Against that, the 200-day SMA around $6.73 per MMBtu continues to cap the upside for the time being. (FXStreet) NZD/USD has sensed selling pressure at around 0.5870 as the DXY has rebounded. Risk sentiment is turning averse as S&P500 futures have extended their morning losses. A slowdown in consumer spending has trimmed hawkish Fed bets. (FXStreet) Prices of the WTI extended the weekly recovery on Thursday. The small uptick was in tandem with increasing open interest and volume and opens the door to some consolidation in the very near term and with the immediate target at the $90.00 mark per barrel and beyond. (FXStreet) GBP/JPY is expected to deliver a steep fall below 169.00 despite an ultra-loose BOJ policy. The BOJ will continue policy easing to achieve pre-pandemic growth rates. Next week, the BOE could announce a rate hike by 75 bps to combat mounting price pressures. (FXStreet) USD/CAD takes offers to reverse the previous day’s bounce off monthly low. RSI, MACD suggests further downside past immediate horizontal support. 50-DMA, two-month-old ascending trend line lures bears, fortnight-long resistance line, 21-DMA test buyers. (FXStreet) The greenback bulls are facing barricades at the downward sloping trendline placed from 83.30. A Positive Divergence signals a resumption in the dominant trend after a corrective move. The DXY is struggling to sustain above 110.50 amid mixed market sentiment. The USD/INR pair is struggling to cross the immediate hurdle of 82.40 in the Tokyo session. However, the US dollar index (DXY) has witnessed a minor correction after failing to sustain above the critical resistance of 110.50. Meanwhile, risk sentiment remains quiet as S&P500 futures are holding their morning losses. (FXStreet) GBP/USD aims to recapture 1.1600 as DXY struggles amid declining odds for the ultra-hawkish Fed. A slowdown in consumer spending has indicated that the inflationary pressures are exhausting. UK’s novel leadership is focusing on squeezing liquidity through fiscal policy. (FXStreet) EUR/JPY pares the biggest daily loss in five weeks, whipsaws after BOJ’s verdict. BOJ left benchmark rate, YCC policy unchanged while matching market forecasts. Sustained trading beyond 100-SMA, monthly support line keeps buyers hopeful. Weekly resistance line holds the key to fresh multi-month high. (FXStreet) AUD/JPY has eased its morning gains and has dropped to 94.40 on BOJ’s unchanged monetary policy. BOJ’s Kuroda has continued its ultra-dovish policy stance due to weak inflation and growth prospects. The RBA may continue its 25 bps rate hike extent despite a historic surge in inflation. (FXStreet) Silver price snaps three-day winning streak but sellers remain cautious of late. Firmer RSI, a struggle to break 200-SMA keep buyers hopeful. Fortnight-old rising wedge bearish formation teases sellers amid a sluggish session. (FXStreet) EUR/USD falls back from a fresh monthly high (1.0094) even as the European Central Bank (ECB) implements another 75bp rate hike, and fresh data prints coming out of the US may fuel the recent decline in the exchange rate as the Personal Consumption Expenditure (PCE) Price Index is anticipated to show sticky inflation. (DailyFX) AUD/USD is trading at trendline resistance as prices eye a second consecutive weekly gain. A break above the trendline would bode well for the price outlook, but the 50-day Simple Moving Average poses a near-term obstacle above that. MACD is increasing towards its midpoint, reflecting healthy price momentum. Alternatively, a reversal lower would threaten the 2022 low. (DailyFX) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.