Market Update - 17 November 2022

EUR/GBP falls to a one-week low on Thursday, though shows resilience below the 0.8700 mark. The formation of a rectangle warrants some caution before placing aggressive directional bets. Investors now await the UK government’s financial plan to determine the near-term trajectory. (FXStreet)

The index navigates the lower end of the range near 106.00. US yields look steady around Wednesday’s close across the curve. Weekly Claims, Philly Fed Index next on tap in the US docket. The USD Index (DXY), which gauges the greenback vs. a bundle of its main competitors, alternates gains with losses just above the 106.00 region on Thursday. (FXStreet)

GBP/JPY is seen oscillating in a narrow trading band around the 166.00 mark. Expectations for further rate hikes by the BoE continue to lend some support. Bulls now await the UK government's financial plan before placing fresh bets. (FXStreet)

USD/IDR prints four-day uptrend, seesaws around intraday high of late. Bank Indonesia is likely to increase benchmark rate by 50 bps. Upside break of fortnight-old resistance line could refresh multi-month high. 21-DMA, ascending trend line from late September restrict short-term downside. (FXStreet)

USD/JPY struggles to consolidate the biggest weekly loss since October 2008, sidelined of late. BOJ officials defend easy money policies despite showing readiness to act. US 10-year Treasury yields snap three-day downtrend, two-year bond coupons extend previous day’s rebound. US Dollar cheers firmer Treasury yields, sour sentiment to pare weekly loss. (FXStreet)

A rebound in the risk-off market mood has strengthened the Greenback bulls. A usual test of the breakout region of the accumulation phase will offer a bargain buy to the market participants. Advancing 20-EMA adds to the upside filters. The USD/CAD pair has shifted its auction profile above the critical hurdle of 1.3350 in the early European session. (FXStreet)

EUR/USD remains pressured around intraday low after snapping two-day uptrend. Fears of political deadlock in the United States, Covid woes from China underpin US Dollar’s safe-haven demand. Upbeat US Retail Sales for October also weigh on Euro. Final readings of Eurozone Inflation, second-tier US data could entertain traders. (FXStreet)

GBP/USD bounces off intraday low but snaps two-day uptrend. Bearish RSI divergence, lower-high formation teases sellers. Weekly support line, 100-HMA challenges immediate downside. (FXStreet)

AUD/USD attracts some dip-buying on Thursday, though the lacks follow-through. Bets for smaller rate hikes by the Fed and a positive risk tone weigh on the buck. China’s COVID-19 woes and a dovish RBA stance should cap any further upside. (FXStreet)

The Greenback bulls will get strengthened after an upside break of the accumulation phase. A Spring formation around 0.9400 to remain a major support area ahead. The 20-and 50-EMAs are on the verge of delivering a bull cross. The USD/CHF pair has extended its recovery after overstepping the immediate hurdle of 0.9458 in the Tokyo session. (FXStreet)

USD/INR rises for the fourth consecutive day despite easing from intraday high of late. China-linked fears join a rebound in the US Treasury yields to favor bulls. Sluggish markets and lack of major data/events challenge upside momentum. (FXStreet)

USD/IDR prints four-day uptrend, seesaws around intraday high of late. Bank Indonesia is likely to increase benchmark rate by 50 bps. Upside break of fortnight-old resistance line could refresh multi-month high. 21-DMA, ascending trend line from late September restrict short-term downside. (FXStreet)

Wednesday’s gains in prices of natural gas were against the backdrop of increasing open interest and volume, which is indicative that the continuation of the rebound looks in place for the time being. Against that, the next upside target for the commodity appears at the 200-day SMA, today around $6.85 per MMBtu. (FXStreet)

Wednesday’s negative price action in crude oil was in tandem with diminishing open interest and volume and suggests that further decline is not favoured in the very near term. Against that, the WTI could move into a consolidative phase while a decent support seems to have emerged around the $84.00 mark per barrel so far. (FXStreet)

Silver drops to a one-week low on Thursday, though finds support ahead of the $21.00 mark. The mixed technical setup warrants some caution before placing aggressive directional bets. A convincing break below the $21.00 mark is needed to support prospects for further losses. (FXStreet)

Gold price has tumbled to near $1,763.00 as the risk-on profile has faded. Geopolitical tensions between North Korea and the US have improved safe haven’s appeal. Fed Daly’s hawkish commentary has supported the US Treasury yields. Gold price (XAU/USD) has witnessed a steep fall after surrendering the critical support of $1,770.00 in the Asian session. (FXStreet)

Source: FXStreet, DailyFX

Disclaimer: The above information are provided as a general market information for educational purpose only, and do not constitute investment advice. Traders and Investors are encouraged to do their own analysis instead of blindly following any Trading calls raised by various parties on the Internet.