Market Update - 25 October 2023

EUR/USD attempts to regain the upward direction post losses registered in the previous session due to weaker Eurozone PMI and upbeat S&P Global PMI from the United States (US). The preliminary HCOB Composite PMI for the eurozone declined to 46.5 in October, down from 47.2 in September. This marks the sixth consecutive reading below 50, indicating a persistent slowdown. (FXStreet)

USD/JPY moves sideways around 149.80 during the Asian session on Wednesday. The pair faces a minor challenge as the US Dollar (USD) consolidates after recent gains. The government is facing increasing political pressure to intervene and safeguard Japanese households from the rising inflation. The Bank of Japan's (BoJ) actions, coupled with the USD/JPY nearing a potential breach of the 150 mark, may not create the impression that the government is exhaustively addressing the inflation challenge. (FXStreet)

The GBP/USD pair stalls its decline and holds below the 1.2200 mark during the Asian session on Wednesday. A decline of the US Dollar (USD) and a retreat in US Treasury bond yields lend some support to the pair. However, the renewed safe-haven flows amid the geopolitical conflicts in the Middle East and the higher-for-longer rate narrative in the US might cap the USD’s downside for the time being. The pair is adding 0.08% on the day to trade at 1.2170 at press time. (FXStreet)

USD/CHF extends its gains for the second consecutive day, trading higher around 0.8950 during the Early European session on Wednesday. The pair strengthened driven by the positive Purchasing Managers Index (PMI) data from the United States, which provides support to the US Dollar (USD). (FXStreet)

The Australian dollar has received some fundamental backing of recent through a low unemployment rate and some hawkish messaging from the Reserve Bank of Australia (RBA) minutes and officials alike. The fight against inflation seems to be at the forefront of the central bank and many believe that the softening of inflationary pressures is not happening at a fast enough rate. With Australian inflation data scheduled next week (expected lower), this could give a good indication as to where the RBA bias may shift going forward. (DailyFX)

The USD/CAD pair struggles to capitalize on the overnight goodish intraday rally of around 90 pips from a multi-day low and oscillates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.3700s, or a near three-week high touched on Tuesday as traders keenly await the Bank of Canada (BoC) policy decision before positioning for the next leg of a directional move. (FXStreet)

NZD/USD struggles to remain in the positive territory after minor losses registered in the previous session due to weaker upbeat S&P Global PMI from the United States (US). US S&P Global Composite PMI showed growth in October, rising from 50.2 to 51.0. The Services PMI experienced an increase, reaching 50.9, while the Manufacturing PMI rose to 50.0. The manufacturing index has maintained a level above the 50-point threshold in the last six months, indicating a positive shift in that sector. (FXStreet)

The EUR/GBP cross, having shown resilience below the 200-day SMA the previous day, attracts fresh buying on Wednesday and builds on its intraday gains through the early part of the European session. Spot prices currently trade around the 0.8720-0.8725 region and remain well within the striking distance of the highest level since May 8 touched last Friday. (FXStreet)

USD/MXN continues its gains for the second consecutive day, trading higher near 18.3000 during the Early European session on Wednesday. The pair strengthens on the back of the upbeat PMI data from the United States, which bolsters the US Dollar (USD). (FXStreet)

Indian Rupee (INR) gains traction against the US Dollar (USD) on Wednesday, supported by retreating oil prices and US Treasury bond yields. However, investors remained worried about the higher-for-longer rate narrative as Federal Reserve (Fed) Chair Jerome Powell said that the economy's resilience and tight labor markets may require tighter conditions. (FXStreet)

The EUR/JPY cross posts modest gains after bouncing off the previous day’s low of 158.53 during the early European session on Wednesday. The cross currently trades around 158.80, gaining 0.03% for the day. That being said, the downbeat Eurozone economic data is one of the factors that exert pressure on the Euro (EUR) against the Japanese Yen (JPY). (FXStreet)

The AUD/JPY cross catches aggressive bids during the Asian session on Wednesday and spikes to the 95.90 region, or over a three-week high following the release of Australian consumer inflation figures. (FXStreet)

WTI prices saw their decline gather further pace on Tuesday. The daily retracement came amidst diminishing open interest and hints at the idea that a more sustained drop appears to be losing traction. Furthermore, the commodity is expected to meet the next contention area around $81.50 per barrel in the very short term. (FXStreet)

Tuesday’s uptick in prices of natural gas was in tandem with diminishing open interest and volume, which at the same time is indicative that extra gains appear not favoured in the very near term. So far, the $3.50 region per MMBtu still emerges as the next resistance of note for the commodity. (FXStreet)

Gold price snaps the losing streak, trading higher around $1,970 per troy ounce during the Asian session on Wednesday. The price of the precious metal receives upward support due to the stable US Dollar (USD) post-trimming recent losses. (FXStreet)

Silver meets with a fresh supply following an intraday uptick to the $23.00 round figure and turns lower for the third successive day on Wednesday. The white metal remains depressed through the early part of the European session and currently trades around the $22.85 region, down nearly 0.30% for the day. (FXStreet)

Bitcoin prices surged overnight following my update yesterday on news that the iShares Bitcoin Trust had been listed on the DTCC (Depositary Trust & Clearing Corporation, which clears Nasdaq trades). This is part of the process to bring the ETF to market prompting speculators to ramp up their bullish bias. (DailyFX)

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.