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20.11.2023 Market Report


EUR/USD continues the winning streak, trading around a three-month high at 1.0920. The pair seems to approach immediate resistance around the major level at 1.0950 as the US Dollar faces pressure on the likelihood of the Fed to conclude its interest rate-hike cycle.


The GBP/USD pair holds positive ground around 1.2485 during the early European session on Monday. The recovery of the pair is bolstered by the softer US Dollar and lower US Treasury bond yields. 


The USD/JPY pair meets with a fresh supply following an Asian session uptick to the 150.00 psychological mark and drifts into negative territory for the third successive day on Monday. Spot prices currently trade around the mid-149.00s and remain well within the striking distance of the monthly low retested on Friday.


The AUD/USD pair holds above 0.6500 during the early Asian session on Monday. Meanwhile, the US dollar Index (DXY) posts its worst weekly decline since mid-July, hovering around 103.80. That being said, a weaker USD and lower US Treasury bond yields might lend some support to the pair this week. At the press time, the pair is trading at 0.6513, unchanged for the day.


NZD/USD receives upward support following China’s interest rate decision. The People’s Bank of China (PBoC) has opted to keep its loan prime rate (LPR) unchanged at 3.45%, in line with expectations. The NZD/USD pair trades higher around 0.6020 during the Asian session on Monday, extending the gains for the second successive session.


The USD/CAD pair trades in negative territory for the second consecutive day in the Asian session on Monday. The downtick of the pair is backed by the weaker US Dollar (USD) and the lower US Treasury bond yield. At the time of writing, USD/CAD is holding lower ground near 1.3705, losing 0.07% on the day.


USD/CHF continues to move on a downward trajectory, trading lower around 0.8840 during the Asian session on Monday. The USD/CHF pair faces downward pressure as the market perceives signs of a cooling labor market in the United States (US). This indicates that the Federal Reserve (Fed) might have concluded its hiking cycle, leading to a weakening of the US Dollar (USD) over the previous week.


Oil futures nudged higher on Monday, extending gains on expectations of OPEC+ deepening supply cuts to shore up prices, which have fallen for four weeks on easing concern of Middle East supply disruption amid the Israel-Hamas conflict.


Gold price regains positive traction amid expectations that US interest rates have peaked. The recent decline in the US bond yields undermines the US Dollar and remains supportive. Looming recession risks and geopolitical tensions further benefit the safe-haven XAU/USD.

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