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11.10.2023 Market Report


EUR/USD is holding steady while defending 1.0600 heading toward the European open on Wednesday. The US Dollar licks its wound following the dovish Fed commentaries and amid an upbeat mood. Key US PPI inflation and Fed Minutes are next in focus. 


GBP/USD scales higher for the sixth successive day and climbs to a near three-week high. Retreating US bond yields and a positive risk tone undermine the USD and lend support. Traders now look to the US PPI and FOMC meeting minutes for some meaningful impetus.


USD/JPY extends its gains on the second successive day, trading higher around 148.80 during the Asian session on Wednesday. The pair rebounded in the previous session on the positive risk sentiment in the midst of the Middle East conflict.


The Australian Dollar (AUD) registered modest gains versus the US Dollar (USD) late in the yesterday’s North American session, with the latter remaining under selling pressure as US Treasury bond yields began to pair their earlier losses.


The NZD/USD pair attracts some follow-through buying for the sixth successive day on Wednesday and climbs to a one-month high, just above mid-0.6000s during the Asian session. The US Dollar (USD) remains on the defensive in the wake of reduced bets for further interest rate hikes by the Federal Reserve (Fed), which, in turn, is seen as a key factor acting as a tailwind for the NZD/USD pair. Relatively subdued US wage growth data released on Friday eased inflationary concerns, which, along with the dovish remarks by several Fed officials suggested that the US central bank will soften its hawkish stance.


USD/CAD snaps the four-day losing streak, trading slightly higher around 1.3590 during the Asian session on Wednesday. However, the pair faced challenges due to the higher oil prices.

A decisive break above the latter could contribute upward support for the pair to explore the area around the major level at 1.3650


The USD/CHF declined near the 0.9040 level and tallied its fifth straight day of losses. Christopher Waller and Neel Kashkari from the Federal Reserve (Fed) speaking later in the session. As Lorie Logan stated on Monday, tighter financial conditions may put less pressure on the Fed to continue hiking; both speakers could generate volatility in the bond markets if they provide clues on forward guidance and affect the US Dollar price dynamics. Likewise, no relevant reports or data will be released on the Swiss economic calendar.


Crude prices were back in the positive in Wednesday’s Asian session, trading a few cents above the lower close of the previous day, as the hunt for leads continued in a market left directionless by oil’s all-too-brief rally on the latest Middle East crisis.


Gold is extending its phase of bullish consolidation near the one-week high of $1,865 in Asian trading on Wednesday. XAU/USD price is gathering pace for the next leg higher, as the United States Dollar licks its wounds amid a renewed downtick in the US Treasury bond yields across the curve.

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