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12.10.2023 Market Report


EUR/USD is trading above 1.0600, attracting some buying during the Asian trading on Thursday. Dovish Fed expectations keep the US Dollar bulls on the defensive and lend support to the pair. Traders seem reluctant to place aggressive bets ahead of the US consumer inflation report.


GBP/USD continues to trade modestly higher on the day above 1.2300 despite uninspiring macroeconomic data releases from the UK. Industrial and Manufacturing Production contracted in August, while monthly GDP expanded by 0.2%.


The USD/JPY pair oscillates in a narrow trading band during the Asian session on Thursday and is currently placed just above the 149.00 mark, well within the striking distance of the weekly high touched the previous day. A generally positive risk tone, along with the Bank of Japan’s (BoJ) persistent ultra-easy monetary policy, is seen undermining the safe-haven Japanese Yen (JPY) and acting as a tailwind for the USD/JPY pair. The upside, however, remains limited in the wake of subdued US Dollar (USD) price action, which continues to be weighed down by diminishing odds for more rate hikes by the Federal Reserve (Fed) and a further decline in the US Treasury bond yields.


The Aussie (AUD) fell lower against the US Dollar (USD) before staging a mild recovery, as the USD eased back following underwhelming market reaction to US PPI figures which beat expectations and the Federal Reserve’s latest meeting minutes, which saw officials spreading their bets to the middle with inflation risks still on the board, but not bad enough to move on rates.


NZD/USD extends losses after snapping the five-day winning streak, pulling back from the two-month high. The spot trades lower around 0.6020 during the Early Asian session on Thursday. The pair is facing challenges after the higher-than-expected US wholesale inflation and the release of the FOMC minutes. US Producer Price Index (PPI) surged in September, jumping from 2.0% to 2.2%, surpassing the anticipated 1.6%. The real suspense builds up for Thursday’s Consumer Price Index (CPI) unveiling. Forecasts hint at a drop in the annual rate for September, slipping from 3.7% to 3.6%. Brace for some market turbulence. Additionally, keep an eye out for the weekly Jobless Claims report coming your way.


USD/CAD extends gains on the second day, trading in a positive territory around 1.3600 during the Asian session on Thursday. The pair is receiving upward support after robust economic data from the United States (US) and the disclosure of the Federal Open Market Committee (FOMC) meeting minutes.


USD/CHF continues to move on the downward trajectory that began last week, trading lower around 0.9010 during the Asian session on Thursday. The pair trades near the three-week lows. Despite robust economic data from the United States (US), the US Dollar (USD) is facing challenges due to the possibility of the Federal Reserve (Fed) ending the rate-hike cycle.


Crude prices fell for a third day in a row as trading began in Asia Thursday, responding to a report by industry group API that the largest weekly crude stockpile build in eight months may have taken place in the United States last week.


Gold is flirting with a new two-week high near $1,880. Gold price has regained its recovery momentum, as the USD stays on the defensive alongside the US Treasury bond yields amid a cautious Fed stance on interest rate.

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