Market Update - 11 November 2022

USD/JPY struggles to preserve its intraday recovery gains amid sustained USD selling. Bets for less aggressive Fed rate hikes and sliding US bond yields weigh on the buck. The risk-on impulse could undermine the safe-haven JPY and lend support to the pair. A more dovish BoJ might also hold back bears from placing fresh bets around USDJPY. (FXStreet)

The index remains well on the defensive near 107.40. The persistent risk-on trade keeps hurting the dollar. Flash Michigan Consumer Sentiment next of note in the docket. The dollar keeps losing ground and navigates an area last seen back in mid-August in the mid-107.00s when tracked by the USD Index (DXY) on Friday. (FXStreet)

EUR/GBP remains mildly bid while showing no major reaction to the UK, German data. UK’s Q3 GDP eased to -0.2% QoQ versus -0.5% expected and 0.2% prior. Germany’s HICP inflation gauge confirmed 11.6% YoY figures for October. The market’s cautious optimism underpins bullish bias, off in the US, and Canada restricts immediate advances. (FXStreet)

GBP/USD attracts some dip-buying near the 1.1650-1.1645 region, though lacks follow-through. The USD languishes near a two-month low and continues to lend some support to the major. Mostly better-than-expected UK macro releases fail to impress bulls or provide any impetus. (FXStreet)

EUR/USD renews three-month high despite grinding higher of late. Clear break of 100-DMA, September’s high favor buyers amid bullish MACD signals. Nearly overbought RSI tests bulls on their way to 1.0355-70 resistance area. (FXStreet)

USD/CAD has witnessed barricades around 1.3350 amid positive market sentiment. Loonie bulls are supported by BOC’s hawkish commentary and a recovery in oil prices. Going forward, US long-term inflation report will be of utmost importance. (FXStreet)

GBP/JPY struggles to extend the daily gains amid sluggish yields, pre-data anxiety. Optimism surrounding Brexit, BOE’s next move keeps buyers hopeful but fears of Japan’s meddling test upside. Yields dropped after US inflation data amplified risk-on mood. Fears that UK Q3 GDP will amplify recession woes weigh on the prices. (FXStreet)

USD/INR licks its wounds at the lowest levels since late September. Eight-month low US CPI bolstered hopes of Fed’s easy rate hikes going forward. China-linked risk-aversion joins sluggish market moves to trigger USDINR consolidation. US Michigan CSI, risk catalysts eyed for fresh impulse. (FXStreet)

AUD/USD adds to the overnight rally and climbs to its highest level since September 22. The softer US CPI-inspires USD selling remains unabated and offers support to the pair. The lack of follow-through buying warrants some caution for aggressive bullish traders. (FXStreet)

NZD/USD reverses an intraday dip and climbs to a nearly two-month high on Friday. The USD consolidates the post-US CPI slump and continues to lend some support. The prevalent risk-on mood provides an additional boost to the risk-sensitive Kiwi. The lack of follow-through buying beyond the 100 DMA warrants caution for bulls. (FXStreet)

Silver gains traction for the second straight day and climbs to over a five-month peak. The technical set-up favours bullish traders and supports prospects for further gains. A convincing break below the $21.00 mark is needed to negate the positive outlook. (FXStreet)

Thursday’s uptick in prices of natural gas was accompanied by another build in open interest, which allows for the continuation of the recent bounce. The sharp drop in volume, however, could also spark a knee-jerk in the very near term. The next up barrier of note, in the meantime, emerges at the November high at $7.22 per MMBtu (November 7). (FXStreet)

Gold price remains sidelined around 2.5-month high, mildly offered of late. Risk-on mood fades amid Covid fears from China, anxiety ahead of Biden-Xi meeting challenge XAU/USD buyers. Sluggish yields, mildly offered US stock futures exert downside pressure on bullion. US Michigan CSI, risk catalysts eyed for fresh impulse. (FXStreet)

Crude oil prices charted humble gains on Thursday amidst a small uptick in open interest, which is supportive of the continuation of the rebound in the very near term. Moving forward, the WTI now targets the so far November peak at $93.73 (November 7). (FXStreet)

A sharp reversal saw BTC rise 12%, but prices remain below the 50-day Simple Moving Average (SMA) and a zone of recently broken support that underpinned a consolidation period spanning back to June. If prices close a weekly candlestick below the former support zone, more downside may occur. (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.