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12.10.2021 Market Report


In opinion of FX Strategists at UOB Group, the downward momentum in EUR/USD seems to be losing some traction.


UK claimant count change arrived at -51.1K in September.

The unemployment rate in the UK dropped to 4.5% in August.

The UK wages excluding bonuses rose by 6% YoY vs. 5.9% expected.


USD/JPY climbed to fresh multi-year tops on Tuesday amid sustained USD buying interest.

The risk-off impulse benefitted the safe-haven JPY and capped the upside for the major.

Bulls might now wait for a sustained strength beyond an ascending trend-channel hurdle.


AUD/USD remains subdued on Tuesday in the early European trading hours.

The US Dollar Index stands strong above 94.30 with 0.03% gains.

Higher Inflation risk, Fed’s tapering concerns exerts pressure on the riskier asset.


FX Strategists at UOB Group suggested that NZD/USD now moved into a consolidative phase, likely between 0.6875 and 0.7000.


USD/CAD accumulates mild gains on Tuesday in the Asian session.

Crude oil prices subsidize from the higher levels weigh on the loonie.

The US Dollar Index remains stronger at 94.40 with fresh daily gains.

In doing so, the Loonie pair tracks multi-month high of WTI crude oil prices, Canada’s main export, while also watching comparatively better employment data from Ottawa than Washington.


USD/CHF continues to consolidate gains on Tuesday in the Asian session.


CME Group’s preliminary readings for crude oil futures markets noted open interest went down for the second session in a row on Monday, this time by around 11.2K contracts. On the other hand, volume went up for the third session in a row, now by nearly 31K contracts.


Gold prices spike higher after the initial subdued session trading in the familiar trading range as USD retreats and risk-off mood. The US Dollar Index after hovering near to one year high amid surging energy prices and Fed’s tapering expectations slides on a mild pullback. The concerns over slower economic growth due to soaring oil prices supported the precious metal near the lower levels. Investors remained pessimistic after China’s Evergrande missed its third consecutive round of bond payments in three weeks, thus intensifying contagion default risk. Furthermore, the European Central Bank (ECB) Chief Economist Philip Lane shrugged off the rout of the current rout of inflation in the eurozone to trigger monetary policy action as wages and service sector growth remains weak. Gold is seen as a hedge against inflation on its safe-haven appeal.