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08.11.2023 Market Report


EUR/USD is trading on the defensive below 1.0700, lacking any firm direction in early Europe on Wednesday. A modest US Dollar uptick amid a cautious mood and positive US Treasury bond yields is weighing on the pair. All eyes remain on Fed Chair Powell’s speech. 


GBP/USD is under renewed bearish pressure below 1.2300 in European trading on Wednesday. The US Dollar upswing seems to regain momentum, as investors turn cautious ahead of speeches from BoE Governor Bailey and Fed Chair Powell.


The Japanese Yen (JPY) continues with its relative underperformance in the wake of a more dovish stance adopted by the Bank of Japan (BoJ), which, in turn, is seen acting as a tailwind for the USD/JPY pair. The US Dollar (USD), on the other hand, stalls its goodish recovery move from a multi-week low touched on Monday and caps the upside for the major. Furthermore, traders opt to remain on the sidelines ahead of Federal Reserve (Fed) Chair Jerome Powell’s speech later during the early North American session.


AUD/USD proceeds downward with the negative bias, extending the losing streak despite the Reserve Bank of Australia RBA) delivering a 25 basis points rate hike on Tuesday. The pair trades lower near 0.6420 during the Asian session on Wednesday, facing downward pressure as Australia’s central bank delivered a dovish rate statement.


The NZD/USD pair struggles to capitalize on the overnight late rebound from the 0.5910 area, or the weekly low and remains on the defensive through the Asian session on Wednesday. Spot prices currently trade around the 0.5930 region and seem vulnerable to extending this week’s rejection slide from the 0.6000 psychological mark, or the highest level since October 12 touched on Monday.


The USD/CAD pair gains positive traction for the third successive day on Wednesday and climbs to the 1.3780-1.3785 region, or a fresh weekly high heading into the European session. The move up sums up to a rally of over 150 pips from a multi-week low, around the 1.3630-1.3625 region touched on Monday and is sponsored by a combination of factors.


As the bears took a breather, the USD/CHF managed to gain additional momentum while there were no highlights during the session. Neel Kashkari, Austan Goolsbee and Michael Barr from the Federal Reserve (Fed) spoke on Tuesday but didn’t provide markets with any new guidance. They were seen as somewhat cautious, welcoming the latest positive inflation figures and still attaching themselves to a data-dependency approach. Chair Powell will speak on Wednesday, where investors will look for further clues on what the Fed will decide in its last meeting of 2023.


Oil prices struggled on Wednesday after sliding to their lowest levels in over three months in the previous session, weighed down by concerns over waning demand in the world’s top oil consumers, the United States and China.


Gold price is consolidating losses incurred so far this week,  early Tuesday, as the United States Dollar is in search of a clear directional amid conflicting US Federal Reserve commentaries, a cautious risk tone and the recent drop in the US Treasury bond yields.

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