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01.12.2023 Market Report


The EUR/USD pair hovers around the 1.0900 psychological mark after retracing from the multi-month high of 1.1017 during the early Asian trading hours on Friday. Falling inflation and a stagnant economy in the Eurozone fuel hopes that interest rates could soon be cut. 


GBP/USD recovers its recent losses registered in the previous session, trading higher around 1.2650 during the Asian session on Friday. The pair strengthened on weaker US Dollar amid downbeat US Treasury yields. 


The US Dollar (USD) is trying to claw back chart paper from the Japanese Yen (JPY) on Thursday, but struggling to decisively re-mount the 148.00 handle. US Core Personal Consumption Expenditures (PCE) Price Index figures for October came in exactly as expected, with the MoM printing at 0.2% versus September’s 0.3%, while the annualized figure for the year into October printed at 3.5% compared to September’s annualized print of 3.7%.


The AUD/USD pair holds above the 0.6600 psychological mark during the early Asian session on Friday. However, the rebound of the US Dollar (USD) might cap the pair’s upside in the near term. Meanwhile, the US Dollar Index (DXY) surges to 103.50 while the US Treasury bond yield edge higher, with the 10-year Treasury yield standing at 4.328%. AUD/USD currently trades near 0.6605, down 0.03% on the day.


NZD/USD trims its intraday gains, still trading higher near 0.6160 during the Asian session on Friday. The NZD/USD pair received upward support as the US Dollar (USD) drifted lower on the back of subdued US bond yields. Additionally, New Zealand’s Roy Morgan Consumer Confidence released for November by the ANZ, showed that consumer confidence improved to 91.9 from 88.1 prior. The improved data could have supported the Kiwi pair’s strength.


The USD/CAD pair remains under some selling pressure for the second straight day on Friday and drops to over a two-month low during the Asian session. Spot prices currently trade around the 1.3540-1.3535 region and seem vulnerable to prolonging the recent well-established downtrend witnessed over the past three weeks or so.


USD/CHF hovers near 0.8750 during the Asian session on Friday, retracing its gains registered on Thursday. The decline in the US Dollar (USD) weighs on the USD/CHF pair following the likelihood of ending the interest rate hike by the US Federal Reserve (Fed).


Oil prices extended losses on Friday, and looked set for a sixth straight week of declines, as voluntary oil output cuts agreed by OPEC+ producers fell short of market expectations.


Gold is back in the green early Friday, snapping a corrective decline from six-month highs of  $2,052 seen Thursday. The renewed weakness in the United States Dollar and the US Treasury bond yields is boding well for XAU/USD price.

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