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23.09.2022 Market Report


EUR/USD is dropping towards 0.9800 heading towards early European morning, as the US dollar is regaining the upside traction amid a dour mood. Investors await preliminary PMis from across the Euro area economies and the US for fresh trading impetus. 


GBP/USD is trading pressured below 1.1250 in early Europe, undermined by a renewed uptick in the US dollar. Risk-off sentiment combined with firmer Treasury yields propel the dollar. All eyes are on UK/US PMIs in the aftermath of the Fed and BOE rate hikes. 


The USD/JPY pair struggles to capitalize on the previous day’s late rebound from over a two-week low and oscillates in a range through the first half of trading on Friday. The pair is currently placed in neutral territory, around the 142.25 region and is influenced by a combination of diverging forces.


The AUD/USD pair is dropping sharply after facing barricades around 0.6670 in the Asian session. The asset is expected to re-test a two-year low, recorded on Thursday at 0.6574. The major has refreshed its intraday low at 0.6616 and is looking to display more weakness.


The NZD/USD pair is coming out of the woods as the US dollar index (DXY) has rebounded firmly. The asset has been oscillating in a narrow range of 0.5836-0.5857 and is expected to deliver a downside break, which will drag the asset towards the critical mark of 0.5800. Earlier, the asset witnessed a steep fall after failing to sustain above the crucial hurdle of 0.5880. A re-test of the fresh two-year low at 0.5804 will direct the decisive move ahead.


USD/CAD is trading modestly flat below 1.3500 in Friday’s Asian trading so far, as bulls take a breather after three straight days of unrelenting rise.


The USD/CHF pair catches aggressive bids after the Swiss National Bank announced its policy decision yesterday and continues scaling higher through the mid-European session. The momentum lifts spot prices to a fresh two-week high, though stalls ahead of the 0.9860-0.9870 supply zone tested in August and earlier this month.


Oil prices fell on Friday amid recession fears and a stronger U.S. dollar, though losses were capped by supply concerns after Moscow’s new mobilization campaign in its war with Ukraine and an apparent deadlock in talks on reviving the Iran nuclear deal.


Gold price remains vulnerable amid hawkish Fed outlook and geopolitical risks. End-of-the-week flows and profit-taking in the US dollar could help XAU/USD recover. XAU/USD could keep its range trade intact, with Powell’s speech next of note.

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