Market Update - 16 November 2023

NZD/USD trades in positive territory for three straight days on Thursday. House prices in New Zealand dropped marginally in October, while sales activity has been steadily increasing since 2022. US PPI declined 0.5% MoM in October vs. 0.4% prior, Retail Sales dropped by 0.1% from a fall of 0.3%. (FXStreet)

GBP/USD struggles to gain any meaningful traction and oscillates in a range on Thursday. Bets that the Fed is done raising rates cap the USD recovery and lend support to the pair. Expectations that the BoE will start cutting rates in 2024 act as a headwind for the GBP. (FXStreet)

USD/JPY meets with some supply on Thursday and reverses a part of the overnight strong move up. Intervention fears, along with the cautious mood, underpin the JPY and exert pressure on the major. The Fed-BoJ policy divergence should continue to act as a tailwind for the pair and help limit losses. (FXStreet)

USD/CAD snaps a two-day losing streak on improved Greenback. Weaker Crude Oil prices are weighing on the Canadian Dollar. US Dollar gains ground, driven by investors possibly adopting a cautious stance. (FXStreet)

EUR/USD lose ground near 1.0835 on the firmer USD. The markets believe that the Federal Reserve (Fed) is done with hiking cycle. Eurozone Industrial Production for September declined 1.1% MoM vs 0.6% rise prior. European Central Bank (ECB) President Lagarde speech, US weekly Initial Jobless Claims will be closely watched events. (FXStreet)

The index hovers around the mid-104.00s. Speculation of Fed’s rate cuts next year remain firm. Weekly Claims, Philly Fed index take centre stage. The USD Index (DXY), which measures the greenback vs. a bundle of its main competitors, trades with humble losses around the 104.50 region on Thursday. (FXStreet)

EUR/JPY snaps its four-day winning streak below 164.00 on Thursday. The pair holds above the 50- and 100-hour EMA; the RSI indicator stands in bullish territory above 50. The immediate resistance level is seen at 164.22; 163.07 acts as an initial support level for the cross. (FXStreet)

USD/MXN struggles as market sentiment is cautious on Fed policy in the December meeting. US Retail Sales raised a red flag on inflation, justifying further interest rate tightening by the Fed. Banxico could maintain interest rates at 11.25% to achieve its 3.0% inflation target. (FXStreet)

EUR/GBP gains ground near 0.8745 on weaker UK inflation data. The cross holds above the 50- and 100-hour EMA; RSI indicator stands in bullish territory above 50. The 0.8750-0.8755 zone acts as an immediate resistance level; the initial support level is located at 0.8721. (FXStreet)

USD/CHF halts a four-day losing streak as US Dollar rebounds. US Retail Sales eased at 0.1% in October, compared to the expected 0.3% decline. Fed uncertainty over policy decisions in the December meeting is supporting the Greenback. (FXStreet)

Crude Oil prices weakened on weekly build in US crude stockpiles. EIA Crude Oil Stocks Change improved to 3.6M from 0.774M prior. China’s oil refinery experienced a slight slowdown, impacting Oil prices. (FXStreet)

Gold price catches fresh bids on Thursday and is supported by a softer tone around the equity markets. The US Dollar builds on the overnight bounce from a two-month low and should cap gains for XAU/USD. Bets that the Federal Reserve will not hike interest rates further could act as a headwind for the Greenback. (FXStreet)

Silver snaps a three-day winning streak to a near four-week high touched on Wednesday. The technical setup seems tilted in favour of bulls and should help limit any further losses. Bulls still need to wait for a move beyond the $23.60-70 barrier before placing fresh bets. (FXStreet)

Source: FXStreet, DailyFX

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