Market Update - 22 December 2022

USD/JPY meets with a fresh supply on Thursday amid the emergence of fresh USD selling. Sliding US bond yields turn out to be a key factor keeping the USD bulls on the defensive. The BoJ’s policy tweak continues to underpin the JPY and contributes to the offered tone. The upbeat market mood seems to cap the safe-haven JPY and lends support to the pair. (FXStreet)

EUR/GBP gains traction for the second straight day and hits its highest level since mid-November. A downward revision of the UK GDP print undermines the GBP and extends support to the cross. A more hawkish stance adopted by the ECB supports prospects for a further appreciating move. (FXStreet)

GBP/USD regains some positive traction on Thursday amid renewed USD selling bias. The softer-than-expected UK Q3 GDP keeps a lid on any further gains for the major. A dovish BoE decision last week further warrants caution before placing bullish bets. (FXStreet)

USD/CAD holds lower grounds near intraday bottom, prints four-day downtrend. Cautious optimism, downbeat Treasury yields weigh on US Dollar. WTI seesaws near 13-day high amid hopes of more demand on winter, travel concerns. (FXStreet)

US Dollar Index takes offers to refresh intraday low, breaks one-week-old ascending trend line. Bearish MACD signals allow sellers to aim for the previous weekly low, also the lowest level in six months. 100-SMA, weekly top add to the upside filters even if buyers manage to cross support-turned-resistance line. US Dollar Index (DXY) retreats towards the weekly low, marked the previous day, taking offers to refresh the intraday low near 103.83 during early Thursday in Europe. (FXStreet)

EUR/USD picks up bids to refresh intraday top. Firmer oscillators underpin the run-up toward one-week-old resistance line. Monthly high, 61.8% FE level eyed during further advances. A convergence of 50-EMA, three-week-old ascending trend line highlights 1.0600 as short-term key support. (FXStreet)

USD/JPY bounces off intraday low but stays mildly offered around four-month bottom. Yields struggle for clear directions, grinding lower off late, as BOJ announced another unchanged bond buying. Tokyo to pull Covid alert to the highest, PM Kishida pushes Japanese industry for more investment. US GDP, Treasury bond moves eyed for fresh impulse. (FXStreet)

NZD/USD regains positive traction on Thursday amid the emergence of fresh USD selling. Sliding US bond yields and a positive risk tone seem to weigh on the safe-haven greenback. Recession fears could act as a headwind for the risk-sensitive Kiwi ahead of the US Q3 GDP. (FXStreet)

AUD/USD seesaws around intraday high, as well as the weekly top, on mixed concerns. Aussie analysts predict slowdown in spending, China’s budget deficit hit record high during January-November period. US data, yields eyed for fresh impulse amid holiday mood. (FXStreet)

USD/INR reverses from one-week high, snaps two-day uptrend. RBI Minutes defy hopes of pause in rate hikes amid inflation woes. Mixed US data, BOJ’s second unscheduled bond operation weighs on US Dollar. US Q3 GDP, PCE details will be important for immediate directions. (FXStreet)

WTI moving higher along the micro trendline support. Focus could be returning to structural supply risks amid a potential recovery in demand from China. (FXStreet)

Gold price clings to mild gains around weekly top. Mixed risk catalysts, BOJ actions probe US Dollar, bond yields. US data, qualitative factors to determine intraday XAU/USD moves. Holiday season, light calendar to restrict Gold price moves during the rest of 2022. (FXStreet)

Silver price picks up bids to reverse the previous day’s pullback from eight-month high. XAG/USD seesaws around 22-month-old resistance line as prices portray bullish moving average crossover. Sellers need validation from June’s top to retake control. Silver price (XAG/USD) remains mildly bid around the eight-month high as it reverses the previous day’s pullback by rising to $24.00 during early Thursday. (FXStreet)

Source: FXStreet, DailyFX

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