Market Update - 15 December 2022

EUR/GBP struggles to gain any meaningful traction and remains confined in a range. Investors prefer to wait on the sidelines ahead of the BoE and ECB policy decisions. The lack of any buying suggests that the recent downtrend is still far from being over. (FXStreet)

USD/CAD regains some positive traction on Thursday, albeit lacks follow-through buying. Retreating oil prices undermines the Loonie and lends support amid a modest USD uptick. Depressed US bond yields act as a headwind for the USD and cap the upside for the pair. Traders now look to US macro data for some impetus amid a flurry of central bank events. (FXStreet)

GBP/USD rebounds from intraday low but stays mildly offered. Pullback from three-day-old horizontal resistance teases sellers amid overbought RSI, impending bear cross on MACD. Key SMAs add to the downside filters, fortnight-old resistance line also challenges buyers. (FXStreet)

US Dollar Index rebounds from six-month low, snaps two-day downtrend. Fed announced 50 bps rate increase, showed readiness to keep it higher for long. A reassessment of Fed’s rate bias seems favoring US Treasury yields and the greenback. Multiple central bank announcements, US Retail Sales eyed for fresh impulse. US Dollar Index (DXY) remains mildly bid around 104.00 as it prints the first daily gains in three during the early Thursday morning in Europe. (FXStreet)

EUR/USD has slipped near 1.0650 as the risk-off mood has gained significant traction. Higher interest rate peak guidance and no absolute commentary on recession by the Federal Reserve have supported US Dollar. Accelerating Eurozone inflation expectations are expected to force European Central Bank to hike interest rates by 50 bps. EUR/USD is expected to remain on tenterhooks as upside seems capped amid sour market mood. (FXStreet)

USD/JPY picks up bids to snap two-day downtrend. Multiple levels marked since December 01 restrict immediate upside. Receding bearish bias of MACD signals further recovery. 100-SMA acts as the last defense USD/JPY bears. (FXStreet)

AUD/USD takes offers to refresh intraday low, reverses from 6.5-month-old resistance line. Sluggish oscillators add strength to the pullback moves targeting November’s peak. Three-week-old ascending trend line, 100-DMA challenge bears before giving them control. (FXStreet)

NZD/USD seesaws between tepid gains/minor losses through the early European session. A hawkish assessment of the Fed’s decision revives the USD demand and caps the upside. The disappointing Chinese macro data further contribute to the modest intraday pullback. Depressed US bond yields keep a lid on the USD recovery and should help limit the slide. (FXStreet)

USD/INR grinds higher around intraday top, extends India Inflation-led rebound. US Dollar benefits from market’s cautious mood ahead of key central bank announcements. Fed announced 50 bps rate hike, as expected, but showed readiness to keep higher rates for longer. Key central bank announcements, US Retail Sales eyed for fresh impulse. (FXStreet)

USD/IDR picks up bids on mixed prints of Indonesia trade data for November. Indonesia Trade Balance rose more-than-expected to $5.16 billion but Imports and Exports dropped. Indonesian Parliament’s move for Bank Indonesia also teases pair buyers. US Dollar reverses post-Fed losses amid cautious mood ahead of the key central bank announcements. (FXStreet)

Gold price bounces off intraday low as traders await key central bank announcements. US Dollar rebound teases XAU/USD bears but cautious mood restricts movements. Lack of surprises from Fed initially weighed on US Dollar before the recession woes triggered USD rebound. (FXStreet)

A formation of the Three While Soldiers candlestick pattern after a fresh 11-month low has triggered a bullish reversal. The oil prices are currently facing barricades around the 20-EMA at $77.50. A range shift by the RSI (14) from the bearish range to 40.00-60.00 indicates that the bearish bias has faded. West Texas Intermediate (WTI), futures on NYMEX, have turned sideways around $76.70 after failing to sustain above the critical resistance of $77.50 on Wednesday. (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.