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21.11.2023 Market Report


EUR/USD is trading above 1.0950, in the positive territory for the fourth consecutive day early Tuesday. The US dollar tracks the US Treasury bond yields lower, lending support to the pair. Focus shifts to the Fed Minutes amid increased dovish Fed expectations and a cautious market mood. 


GBP/USD is holding its advance above 1.2500 in the European session on Tuesday. The pair is supported by the hawkish remarks from BoE Governor Bailey on Monday. Further, a sustained US Dollar weakness alongside the US Treasury bond yields is underpinning the major amid a mixed market sentiment. Fed Minutes awaited. 


The USD/JPY pair remains under some selling pressure for the fourth straight day on Tuesday – also marking the fifth day of a negative move in the previous six – and drops to its lowest level since October 4 during the Asian session. Spot prices, however, rebound a few pips in the last hour and currently trade around the 148.00 mark, though remain vulnerable to prolong the recent retracement slide from the 152.00 neighbourhood, or the YTD peak touched in October.


The AUD/USD pair consolidates its recent gains to nearly fresh monthly highs during the early Asian session on Tuesday. The risk appetite and lower US Treasury yields exert some selling pressure on the US Dollar (USD), which lends support to the AUD/USD. Meanwhile, the US Dollar Index (DXY) dropped to 103.45, the lowest since late August. At the time of writing, AUD/USD is holding lower ground near 0.6557, losing 0.06% on the day.


NZD/USD extends gains around three-month highs, trading around 0.6050 during the early European session on Tuesday. The selling pressure on the US Dollar (USD) continues, as there is increasing consensus that the Federal Reserve (Fed) has concluded its policy-tightening campaign. Market sentiment is now leaning towards the likelihood of rate cuts by the Fed starting in March 2024.


USD/CAD retraces its recent gains, trading lower around 1.3710 during the Asian session on Tuesday. The Canadian Dollar (CAD) receives upward support against the Greenback due to the higher Crude Oil prices.


During Monday’s session, the USD/CHF pair experienced some softening, trading around 0.8840, reflecting mild losses. While there were no significant swings in the market, the pair traded in a limited range, and investors assess last week’s data from the US on a quiet Monday.


Oil futures fell on Tuesday, reversing steep gains made in the past two sessions, as investors turned cautious ahead of a meeting of OPEC+ this Sunday when the producer group may discuss deepening supply cuts.


Gold price is gaining strong positive traction on Tuesday, climbing to over a two-week high near $2,000. Dovish Fed expectations continue to weigh on the USD and remain supportive of the move. Investors look to the FOMC minutes for cues about future policy action and a fresh impetus.

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