Market Update - 12 October 2023

USD/JPY remains confined in a familiar range, forming a rectangle on short-term charts. The technical setup seems tilted in favour of bulls and supports prospects for further gains. Traders now seem reluctant and prefer to wait on the sidelines ahead of the US CPI report. (FXStreet)

USD/CAD continues to gain after robust US wholesale inflation data. US CPI suggests a decrease in the annual rate for September. Downbeat Crude oil prices contribute to pressure on the Canadian Dollar. (FXStreet)

GBP/USD moves upward on divergence in viewpoints disclosed in the FOMC minutes. US Dollar remains defensive despite robust wholesale inflation data. US CPI suggests a decrease in the annual rate for September. (FXStreet)

GBP/JPY sticks to modest intraday gains near the multi-week top touched earlier this Thursday. The BoJ’s dovish stance, a positive risk tone continues to undermine the JPY and lend support. Traders now look to the UK macro data before positioning for any further appreciating move. (FXStreet)

EUR/USD steadily climbs back to over a two-week high touched on Wednesday amid a softer USD. Expectations that the Fed is nearing the end of its rate-hiking cycle continue to undermine the buck. Bulls now seem reluctant and keenly await the release of the US CPI report before placing fresh bets. (FXStreet)

WTI hits a fresh weekly low on Thursday and is pressured by a combination of factors. Receding fears over potential supply disruptions due to the Israel-Gaza conflict weigh. A weaker USD could lend some support ahead of the official EIA US Oil inventory data. (FXStreet)

NZD/USD faces selling pressure near 0.6040 as the US Dollar rebounds ahead of inflation data. The market mood is still upbeat as the Fed is expected to keep interest rates unchanged at 5.25-5.50%. NZD/USD rebounded quickly after discovering buying interest near the support zone placed in a range of 0.5850-0.5870. (FXStreet)

USD/MXN oscillates in a narrow trading band near a one-week trough touched on Wednesday. The mixed technical setup warrants caution for bears and before positioning for deeper losses. A sustained strngth beyond the 38.2% Fibo. level will set the stage for some maningful upside. (FXStreet)

EUR/GBP snaps the losing streak despite the downbeat economic data from the UK. Euro faces a challenge as the ECB is expected to keep interest rates unchanged in the upcoming meeting. ECB’s Yannis stated that there is little benefit in accelerating the conclusion of the PEPP. (FXStreet)

USD/CHF continues the losing streak on the Fed’s interest rate trajectory. US Dollar extends losses despite robust wholesale inflation data. US CPI suggests a decrease in the annual rate for September. Swiss Franc might receive buying support on the Middle-East conflict. (FXStreet)

Gold price builds on its recent recovery from a multi-month low and climbs to a two-week high. Geopolitical tensions, sliding bond yields and a weaker USD continue to lend support to the metal. The US CPI report could offer fresh cues about the Fed’s rate-hike path and provide some impetus. (FXStreet)

Silver gains some follow-through traction on Thursday and advances to a near two-week high. The technical setup warrants some caution for bulls and before positioning for additional gains. Weakness below the $21.60-55 area will suggest that the recovery momentum has lost steam. (FXStreet)

Source: FXStreet

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