Pre Loader

05.12.2023 Market Report


EUR/USD is ranging in a narrow band near 1.0850 in early Europe on Tuesday. The renewed downtick in the US Dollar alongside the US Treasury bond yields is supporting the pair while broad risk-aversion is capping its upside. US jobs and ISM PMI eyed. 


The GBP/USD pair edges higher during the Asian session on Tuesday and looks to build on the overnight bounce from the 1.2600 mark, representing the lower boundary of a one-week-old trading range. Spot priceshover around the 1.2630-1.2635 region and draw support from a combination of factors.


The USD/JPY pair remains trading in an uptrend as US Treasury bond yields advance, mainly the 10-year benchmark note, rising close to ten basis points at 4.289%, a tailwind for the major. Another factor is that investors aggressively priced in rate cuts by the US central bank, according to the Chicago Board of Trade (CBOT) data.


The AUD/USD pair loses ground below the 0.6600 psychological round mark during the Asian trading hours on Tuesday. The pair faces some selling pressure after the Reserve Bank of Australia’s (RBA) monetary policy meeting. The pair currently trades near 0.6575, down 0.70% for the day.


The NZD/USD pair holds positive ground around the mid-0.6100s during the early Asian session on Tuesday. The recovery of the pair is backed by the stronger-than-expected Chinese data. At press time, NZD/USD is trading near 0.6162, down 0.06% on the day. 


The USD/CAD pair builds on the previous day’s recovery move from the 1.3480 region, or its lowest level since September 29 and gains positive traction for the second successive day on Tuesday. The momentum lifts spot prices to a three-day top, beyond mid-1.3500s during the Asian session and is sponsored by bearish Crude Oil prices.


The USD/CHF has rebounded on Monday, climbing 0.6% and touching 0.8750 as the US Dollar (USD) climbs across the board, fueled by broad-market risk-off flows, and the Swiss Franc (CHF) takes a hit after the Swiss Consumer Price Index (CPI) inflation reading misses the mark.


Oil prices were little changed on Tuesday amid uncertainty over voluntary output cuts by OPEC+, continued tension in the Middle East and weak economic data from the U.S.


Gold price witnessed a dramatic intraday turnaround on Monday and retreated nearly $125 after the initial rally to a fresh all-time high, around the $2,144-2,145 region. The sharp pullback, however, stalled near the $2,020 area in the wake of growing acceptance that interest rates in the United States have peaked. 

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.