Market Update - 30 October 2023

USD/JPY kicks off the new week on a positive note and recovers a part of Friday’s losses. The divergent BoJ-Fed policy outlook is seen as a key factor lending support to the major. Intervention fears might keep a lid on further gains ahead of the central bank event risks. (FXStreet)

NZD/USD moves upward on the subdued performance of the US Dollar. Israel has expanded its ground operations in Gaza; which could affect the Kiwi Dollar. The market sentiment leans towards the Fed’s dovish stance on policy rates. (FXStreet)

USD/CAD loses ground around 1.3862 amid a softer USD. Fed is anticipated to maintain rate steady at the end of its two-day meeting on Wednesday. A decline in oil prices might exert pressure on the commodity-linked Loonie. Investors will focus on the Canadian growth number and PMI data ahead of the Fed rate decision at its November meeting. (FXStreet)

GBP/USD maintains its position ahead of the central banks’ policy decisions. The pair faces tepid momentum suggested by the MACD. Immediate support emerges at 1.2000; key resistance at 14-day EMA at 1.2162. (FXStreet)

EUR/USD lacks any firm intraday direction and oscillates in a narrow range on Monday. The formation of a bearish flag pattern supports prospects for some meaningful decline. A sustained strength beyond the 1.0700 mark is needed to negate the negative outlook. (FXStreet)

The index trades without direction around 106.60. Cautiousness should prevail ahead of the FOMC event. Nonfarm Payrolls will be the salient release later in the week. The USD Index (DXY), which tracks the greenback vs. a bundle of its main competitors, extends the consolidative mood around the 106.60 at the beginning of the week. (FXStreet)

EUR/GBP receives upward support before the releases of economic data from Germany. German GDP is expected to decline by 0.3% (QoQ); the yearly index suggests a 0.7% decrease. Investors adopt cautious stance ahead of the BoE policy meeting. (FXStreet)

USD/MXN receives upward support as Crude prices could surge due to Middle-East conflict. The escalation of the Israel-Hamas war could provide minor support for the Mexican Peso. Fed’s policy decision is awaited on Wednesday; market expectations lean towards policy rates to remain at 5.5%. (FXStreet)

USD/CHF continues to move on an upward trajectory despite the tepid US Dollar. The escalation of the Israel-Hamas war could provide support for the safe-haven Swiss Franc. Downbeat US Core PCE Price Index (YoY) weighed on the Greenback. The rebound in 10-year US Bond yield could underpin the buck. (FXStreet)

WTI kicks off the new week on a weaker note, though lacks follow-through and remains confined in a familiar range. The uncertainty over the impact of the Israel-Hamas war holds back traders from placing aggressive directional bets. Traders also prefer to wait on the sidelins ahead of this week’s key central bank event risks and important macro data. (FXStreet)

Gold price kicks off the new week on a weaker note and retreats from a multi-month high. A slightly overbought RSI prompts profit-taking ahead of this week’s key event/data risks. Geopolitical tensions in the Middle East should limit losses for the safe-haven XAU/USD. (FXStreet)

Silver climbs to a one-week high on Monday, albeit struggles to capitalize on the move up. The technical setup seems tilted in favour of bulls and supports prospects for further gains. A sustained move beyond the $23.30-40 confluence is needed to reaffirm the positive bias. (FXStreet)

Source: FXStreet, DailyFX

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