Market Update - 25 November 2022

USD/JPY gains some positive traction and stages a goodish rebound from over a one-week low. A positive risk tone is seen undermining the safe-haven JPY and acting as a tailwind for the pair. Bets for less aggressive Fed rate hikes keep the USD bulls on the defensive and might cap gains. (FXStreet)

EUR/USD adds to the recent strength above the 1.0400 mark. Germany’s final Q3 GDP Growth Rate expanded 1.3% YoY. German Consumer Confidence “improved” to -40.2 in December. The buying pressure remains well and sound around the shared currency and motivates EUR/USD to extend the uptick beyond the 1.0400 mark with some conviction. (FXStreet)

EUR/GBP stages a modest recovery from the monthly low touched on Thursday. A combination of factors underpins the shared currency and offers some support. Rising bets for additional BoE rate hikes benefit the GBP and seem to cap gains. (FXStreet)

GBP/USD is seen oscillating in a narrow trading band on the last day of the week. The less hawkish FOMC minutes continue to weigh on the USD and offer support. Relatively thin trading conditions hold back bullish traders from placing fresh bets. (FXStreet)

USD/CAD refreshes weekly low on Friday amid sustained selling around the US Dollar. The less hawkish FOMC minutes and a positive risk tone continue to weigh on the buck. An uptick in oil prices underpins the Loonie and contributes to the pair’s modest decline. (FXStreet)

The index reverses part of the weekly drop on Friday. Market conditions are expected to remain thin due to US inactivity. The risk complex sees some profit taking at the end of the week. The greenback, in terms of the USD Index (DXY), manages to regain some balance and bounces off recent lows near 105.60 at the end of the week. (FXStreet)

AUD/USD edges lower on Friday, though the intraday downtick lacks follow-through. China’s COVID-19 woes weigh on investors’ sentiment and the risk-sensitive Aussie. The prevalent USD selling bias lends support and limits the downside for the major. (FXStreet)

USD/INR is expected to display sheer losses as it has surrendered the critical support of 81.60. The 10-year US Treasury yields have dropped to near 3.66% as investors see no 75 bps rate hike move ahead. Weaker oil prices and firmer Indian indices have strengthened the Indian rupee bulls. (FXStreet)

The New Zealand Dollar has not been impacted much despite Retail Sales data missed estimates. NZD/USD is hoping for a cushion around the 20-MA (High-Low) band. A slippage in the RSI (14) to the 40.00-60.00 range is merely a loss of momentum, not a bearish reversal. (FXStreet)

Brent crude oil is trading marginally higher this Wednesday although still relatively depressed due to the news about the G-7 proposal to increase the Russian oil price cap from around $60 to $65-$70. What this means for oil markets is that if this new range is agreed upon, Russia is then unlikely to cut off supply as these prices as would be the case with the $60 level. The reason behind this is the fact that Urals (Russian crude oil) has been selling at these levels relative to Brent crude. This being said, there was no agreement made by the member nations with discussion set to continue today. (DailyFX)

USD/CHF is failing to sustain above the 0.9440 hurdle as the risk-on impulse is still solid. The US Dollar has displayed wild gyration in the morning trade. Swiss Employment level is seen higher at 5.331M than the prior release of 5.316M. (FXStreet)

The limited retreat this week and still-buoyant momentum suggest that gold could make one more attempt to test key resistance that has been held so far this month. Last week, XAU/USD turned lower from near a key barrier,a bit earlier than anticipated. The converged ceiling is at 1800-1820, which includes the 200-day moving average and at least three trendline resistances – one from the end of 2021, another from July, and the third from August. (DailyFX)

Silver comes under some selling pressure on Friday, though the downside remains cushioned. The technical setup supports prospects for the emergence of some dip-buying at lower levels. A sustained break below a trend-line resistance breakout point will negate the positive outlook. (FXStreet)

Source: FXStreet, DailyFX

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