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17.10.2023 Market Report


EUR/USD is keeping losses near 1.0550 in the early European morning on Tuesday. Resurgent US Dollar demand is weighing on the pair amid a cautious mood. Markets await Germany’s ZEW Survey and US Retail Sales data for fresh trading incentives. 


GBP/USD is holding lower ground near 1.2200 in early Europe on Tuesday after the data from the UK showed that wage inflation eased modestly in August. Later in the day, September Retail Sales data will be featured in the US economic docket. 


USD/JPY fluctuates at around 149.52 as Tuesday’s Asian session begins after printing minimal gains of 0.02% on Monday. A risk-on impulse maintained the US Dollar (USD) underpinned against the Japanese Yen (JPY). Also, the rise in US Treasury bond yields weighed on the Yen.


The AUD/USD pair consolidated its recent gains during the early Asian session on Tuesday. Investors await the Reserve Bank of Australia (RBA) Meeting Minutes with few changes expected. The Aussie is firmer against the US Dollar (USD) due to the risk-on mood and a dovish stance from the Federal Reserve (Fed) officials. The pair currently trades around 0.6338, losing 0.06% on the day.


The New Zealand Dollar (NZD) weakens across the board following the release of softer consumer inflation figures from New Zealand, which showed that the headline CPI rose to 1.8% in the three months to September. Adding to this, the yearly rate decelerated to 5.6% from 6% in the previous quarter and also fell short of consensus estimates pointing to a reading of 5.9%. The data forces investors to trim their bets for an interest rate hike by the Reserve Bank of New Zealand (RBNZ) in November and is seen weighing on the NZD/USD pair.


The USD/CAD pair posts modest gains during the early Asian session on Tuesday. Market players await the Canadian inflation data due later in the day. The annual and monthly Canadian Consumer Price Index (CPI) for September is expected to rise 4.0% and 0.1%, respectively, The pair currently trades around 1.3620, gaining 0.07% on the day.


The USD/CHF pair snaps a two-day losing streak during the early Asian session on Tuesday. The recovery of US Treasury yields lends some support to the pair. At the time of writing, USD/CHF is trading near 0.9011, holding higher while adding 0.12% on the day.


Oil prices steadied on Tuesday after a more than $1 slide on Monday amid hopes the U.S. would ease sanctions on producer Venezuela and as Washington stepped up efforts to prevent an escalation of the war between Israel and Hamas.


Gold struggles to capitalize on the previous day’s late rebound from the $1,908 area and drifts lower for the second succeessive day on Tuesday. The precious metal maintains its offered tone heading into the European session and is pressured by a positive risk tone, which tends to undermine traditional safe-haven assets.

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