Market Update - 19 December 2022

EUR/USD regains traction on Monday and snaps a two-day losing streak. A positive risk tone undermines the safe-haven USD and lends support. The upbeat German IFO Business Climate Index further provides a boost. The mixed fundamental backdrop warrants some caution for bullish traders. (FXStreet)

USD/JPY fails to gain any meaningful traction on Monday amid a combination of diverging factors. Bets for an eventual BoJ pivot benefit the JPY and cap the upside amid a modest USD downtick. An uptick in the US bond yields could limit the USD losses and lend some support to the major. Traders might also prefer to wait on the sidelines ahead of the BoJ policy meeting on Tuesday. (FXStreet)

USD/CAD struggles to defend bears during the first daily loss in three. Oil price initially cheered hopes of China stimulus, softer US Dollar before latest consolidation. Inflation is the key but holiday mood could restrict short-term moves. (FXStreet)

GBP/JPY fades bounce off two-week low as it approaches the key support. 100-DMA, five-week-old ascending support line restricts short-term downside. Bearish MACD signals, clear break of 50-DMA favor sellers. (FXStreet)

GBP/USD rises for the first time in three straight days on Monday. Broad US Dollar weakness underpins Cable despite Fed-BoE policy divergence. Pound Sterling bulls stay hopeful while above 21DMA, looks to 1.2200. (FXStreet)

US Dollar Index snaps two-day uptrend with mild losses. Fed policymakers keep suggesting higher rates for longer, US PMIs eased in December. Firmer prints of Fed’s preferred inflation gauge could help DXY bulls. (FXStreet)

NZD/USD draws support from a combination of factors and edges higher for the second straight day. A positive risk tone is seen undermining the safe-haven buck and benefitting the risk-sensitive Kiwi. The Fed’s hawkish outlook should limit the USD losses and cap any meaningful upside for the major. (FXStreet)

AUD/USD struggles to defend bulls during the first positive day in three. Risk appetite remains mixed as hopes of more stimulus from China, Covid woes test sentient amid light calendar. Hopes of Australia-China diplomatic ties also underpin AUD/USD rebound. Reserve Bank of Australia Meeting Minutes, Federal Reserve’s preferred inflation data will be crucial for Australian Dollar traders. (FXStreet)

USD/INR pares intraday gains around six-week high, stays depressed of late. US Dollar remains depressed on softer US PMIs, ignore hawkish Fedspeak. Market players expect continuous grind between 82.70 and 83.00. RBI Minutes, US Core PCE Price Index in focus. (FXStreet)

USD/CHF remains pressured near intraday low, prints the first daily loss in three. Multiple supports stand tall to challenge sellers even as looming bear cross on MACD signal further downside. 200-HMA, two-week-old descending trend line guard immediate upside. (FXStreet)

WTI takes the bids to renew intraday high, snaps two-day downtrend. Bearish MACD signals, six-week-old descending trend line challenge buyers. Fresh downside remains doubtful beyond $73.40, yearly low could lure bears afterward. (FXStreet)

Gold price lacks any firm directional bias on Monday and remains confined in a narrow range. A modest USD downtick lends some support, though a combination of factors caps the upside. The prospects for further tightening by major central banks act as a headwind for the metal. (FXStreet)

Silver price fades bounce off 10-DMA, grinds lower of late. 61.8% Fibonacci retracement level, impending bear cross on MACD favor sellers. Six-week-old ascending trend line acts as the key support. Silver price (XAG/USD) fade the previous day’s recovery to around $23.25 during early Monday. (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.