Market Update - 10 October 2023

USD/CAD continues the losing streak due to the improved Crude oil prices The Mid-East tension persists; and contributes support for the oil prices. Investors downplay the likelihood of additional rate hikes following the dovish remarks made by Fed officials. (FXStreet)

USD/JPY stages a modest intraday recovery from a one-week trough touched earlier this Tuesday. The uptick lacks follow-through in the wake of retreating US bond yields and subdued USD demand. The mixed technical setup warrants some caution before positioning for a firm near-term direction. (FXStreet)

EUR/USD moves lower near 1.0550 due to recovery in the US Dollar. MACD indicates a change in momentum and a possible shift towards a bullish trend. The major level at 1.0500 could act as the support, following the previous week’s low at 1.0448. (FXStreet)

EUR/GBP attracts fresh buyers near the 0.8630 support zone or a nearly two-week low. Some repositioning trade ahead of President Christine Lagarde's speech lends support. The mixed fundamental backdrop warrants caution before positioning for further gains. (FXStreet)

USD/CHF rebounds from the three-week low as the US Dollar attempts to snap the losing streak. Swiss Franc receives buying support due to its safe-haven status amid the Middle-East conflict. The probability of policy rate hikes fades due to the dovish remarks made by Fed officials. (FXStreet)

The index reverses an initial drop to 105.90. The NFIB index, Wholesale Inventories are next on tap in the docket. Fedspeak will take centre stage later in the NA session. The greenback, in terms of the USD Index (DXY), navigates a tight range just above the 106.00 hurdle on turnaround Tuesday. (FXStreet)

USD/MXN lacks any firm intraday direction on Tuesday and remains confined in a narrow range. The technical setup favours bulls and supports prospects for an extension of a one-month-old uptrend. A convincing break below the 23.6% Fibo. level is needed to negate the near-term positive outlook. (FXStreet)

Crude oil prices received upward support due to the Palestine-Israel conflict. The escalation of the Mid-East tension could involve Iran and Saudi Arabia. US oil giant Chevron is instructed to cease production at its Tamar natural gas field. The sentiment around rate hikes fades due to the dovish remarks made by Fed officials. (FXStreet)

Gold price meets with some intraday selling after rising to over a one-week high on Tuesday. A positive risk tone and the emergence of fresh USD buying exert pressure on the XAU/USD. Geopolitical tensions in the Middle East could lend some support to the safe-haven commodity. Gold price (XAU/USD) registered str (FXStreet)

Silver meets with a fresh supply and erodes a part of the overnight gains to a one-week high. The technical setup seems tilted in favour of bears and supports prospects for further losses. A sustained strength beyond the $22.20-30 region is needed to negate the negative outlook. (FXStreet)

Source: FXStreet

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