Market Update - 09 November 2022

The Japanese yen is testing a major ceiling against the US Dollar, a break above which could seal an interim low for the Japanese currency. USD/JPY is now at an important crossroads – the September highs of 145.00-145.90. This support is crucial as the pair hasn’t broken below a previous high since the major ascent began earlier this year. Hence, a modest rebound wouldn’t be surprising. However, any potential rebound could be short lived. (DailyFX)

The index extends the bearish move and hovers around 109.50. Republicans lead the race to the Senate by a marginal gap. Weekly Mortgage Applications, Wholesale Inventories, Fedspeak next on tap. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rivals, extends the decline and revisits the 109.50/40 band on Wednesday. (FXStreet)

EUR/GBP lacks any firm intraday direction and remains confined in a narrow trading band. Talks for aggressive policy tightening by the ECB underpin the Euro and offers support. The BoE’s gloomy outlook could weigh on the British Pound and favour bullish traders. (FXStreet)

GBP/USD struggles to defend the four-day uptrend inside a bullish formation. Sustained break of fortnight-old resistance line keeps buyers hopeful. Steady RSI also underpins bullish bias, 200-HMA adds to the downside filters. (FXStreet)

An inventory adjustment process around the critical resistance of 1.0100 bolsters the odds of a breakout. Market mood has turned quiet ahead of US Inflation/Mid-term elections outcome.Advancing 20-and 50-EMAs add to the upside filters. The EUR/USD pair is displaying back-and-forth moves in a narrow range below the critical hurdle of 1.0100. The asset has turned sideways as investors are awaiting the release of the US inflation data for informed decisions ahead. (FXStreet)

USD/CAD seesaws around multi-day low, picks up bids of late. Challenges to sentiment from the US election results, China’s covid conditions test USDCAD bears. DXY rebound, higher inventories weigh on oil prices. Risk catalysts eyed for directions ahead of US CPI, speech from BOC’s Macklem. (FXStreet)

GBP/JPY picks up bids to reverse the previous day’s pullback form weekly top. Short-term resistance line, convergence of the key SMAs challenge buyers. MACD conditions suggest further hardships for buyers, 165.00 appears a tough nut to crack for the bears. (FXStreet)

Anxiety ahead of the US inflation data has dragged the asset from the psychological resistance of 0.6000. Overall optimism in the market may provide support to the asset around the 20-EMA. The RSI (14) is still oscillating in the bullish range, which indicates that the upside momentum is still intact. The NZD/USD pair has turned sideways after failing to cross the immediate hurdle of 0.5960 in the Tokyo session. The risk profile has turned quiet as investors have shifted to the sidelines ahead of the US inflation data. (FXStreet)

USD/CHF picks up bids to print the first daily gains in four. Easing bearish bias of the MACD, clear bounce off fortnight-old support keeps buyers hopeful. Weekly resistance line challenge intraday buyers ahead of the key hurdle comprising 200-SMA, 50% Fibonacci retracement level. (FXStreet)

AUD/USD prints mild losses around six-week high, snaps three-day uptrend. Fears of US government gridlock, pessimism surrounding China’s covid conditions and softer inflation data weigh on prices. Risk appetite remains sluggish ahead of the key data/events, bears are likely to retake control. (FXStreet)

USD/INR has extended its gains to near 81.60 ahead of US mid-elections outcome. Lower consumer spending and Fed’s bigger rate hike have trimmed consensus for the US CPI. The RBI may opt for a 35 bps rate hike in its December monetary policy meeting. (FXStreet)

Tuesday’s strong retracement in prices of natural gas was amidst shrinking open interest and volume, leaving the prospects for further pullbacks somewhat diminished for the time being. Against that, the next hurdle of note remains at the area of recent highs around the $7.20 mark per MMBtu. (FXStreet)

Silver regains some positive traction following the overnight pullback from a multi-month peak. RSI (14) on the daily chart warrants caution for bulls and before positioning for additional gains. Any meaningful corrective pullback could be seen as a buying opportunity and remain limited. (FXStreet)

Gold retreats from over a one-month high touched on Tuesday amid a modest USD uptick. Reviving safe-haven demand offers support to the XAU/USD and helps limit the downside. Bets for less aggressive Fed rate hikes support prospects for the emergence of dip-buying. (FXStreet)

Tuesday’s moderate downtick in prices of the WTI was amidst declining open interest, which removes strength from a potential deeper decline. Against that, there are chances of a rebound in the very near term and with the immediate up barrier at recent peaks past the $93.00 mark per barrel. (FXStreet)

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.