Market Update - 20 December 2022

EUR/USD oscillates in a familiar trading range around the 1.0600 mark on Tuesday. The BoJ-inspired rally in the JPY weighs on the USD and lends support to the major. Hawkish Fed, rising US bond yields and the risk-off mood limits losses for the buck. (FXStreet)

USD/JPY drops more than 3.0% to refresh multi-day bottom after Bank of Japan tweaks Yield Curve Control (YCC) policy. Chatters surrounding Japan’s budget, Treasury bond buying also entertain Yen traders. BOJ Governor Kuroda shows readiness to ease policy if needed, USD/JPY stays pressured. Risk aversion fails to underpin US Dollar as Federal Reserve appears less hawkish. (FXStreet)

GBP/JPY plummets to over a two-month low in reaction to the BoJ’s hawkish twist on Tuesday. A dovish outlook, however, caps gains for the JPY and assists spot prices to recover a few pips. The fundamental backdrop favours bearish traders and supports prospects for further losses. (FXStreet)

USD/CAD picks up bids to reverse the week-start losses. US Dollar benefits from the BOJ-inflicted losses in bond, stock markets. Oil price weaken amid economic fears surrounding China. Canada Retail Sales, US housing data eyed for fresh impulse. (FXStreet)

GBP/USD takes offers to refresh intraday low, pokes short-term key support line. Sustained trading below 100-SMA keeps sellers hopeful of visiting 200-SMA. Two-week-old horizontal area restricts immediate upside before the monthly high. (FXStreet)

US Dollar Index stays depressed around six-month low, retreats from one-week high. Hawkish ECB talk, firmer German data and a light calendar at home probe DXY bulls. US Treasury bond yields remain firmer for the third consecutive day. US housing data, risk catalysts can entertain traders ahead of Friday’s US Core PCE Price Index. (FXStreet)

EUR/JPY dropped more than 400 pips on Bank of Japan widening the bank of yield cap. BOJ left monetary policy unchanged, as expected. ECB hawks, firmer German data previously favored bulls. BOJ Governor Kuroda’s speech will be closely monitored for fresh impulses. (FXStreet)

NZD/USD is taking out a key level and printing fresh lows within a bearish schematic. should the bulls move in now, then there will be prospects of a restest of prior structures near 0.6355 and 0.6375 above. (FXStreet)

AUD/USD drops to a nearly one-month low and is pressured by a combination of factors. The dovish RBA minutes, along with the risk-off mood, weigh on the risk-sensitive Aussie. A weaker USD lends support, though the bias now seems tilted in favour of bearish traders. (FXStreet)

AUD/JPY grinds higher even as RBA Minutes fail to impress traders. RBA Minutes stated that policymakers discussed all options, eyed further rate hikes. Inverse Head-and-Shoulders pattern, impending bull cross on MACD lure buyers. 200-SMA, weekly resistance line add to the upside filters. (FXStreet)

USD/INR picks up bids inside fortnight-old bearish chart pattern. Immediate resistance line, bearish MACD signals test recovery moves inside rising wedge. 50-SMA, looming bull cross on MACD restrict immediate downside. Slower grind to the north more likely amid firmer RSI, sustained trading beyond the key SMAs. (FXStreet)

WTI crude oil struggles to defend the bounce off 50-HMA, remains sidelined of late. Firmer RSI line backs gradual recovery on prices, suggesting further advances of the quote. Sellers need clear break of 200-HMA to retake control. (FXStreet)

Gold price remains mildly bid despite the US Dollar’s latest rebound. BOJ-linked slump in equities, bonds underpin Gold’s safe-haven buying. Headlines surrounding China, global recession also probe XAU/USD bulls but light calendar, holiday mood stop seller’s entry. (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.