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26.09.2022 Market Report


EUR/USD fades bounce off the recently flashed 20-year low of 0.9553, around 0.9630 heading into Monday’s European session, as bears keep reins amid a broad risk-off mood. ECB’s Lagarde, Germany IFO numbers eyed for intraday directions.


GBP/USD remains mostly inactive after declining to the all-time low. Doubts over UK’s fiscal stimulus to generate economic benefits, Russia-Ukraine woes led the bears. Hawkish Fedspeak, firmer US data also exerted downside pressure on the cable pair.


USD/JPY renews intraday high around 143.60 as Tokyo opens for Monday, extending Friday’s recovery moves. In doing so, the yen pair also reverses the previous day’s pullback from the 24-year high, triggered by Japan’s intervention to defend the national currency.


In the early Tokyo session, the asset printed a fresh two-year low at 0.6487 and a less confident pullback pushed the asset above 0.6500, Now, the market participants have capitalized on a pullback and a firmer US dollar index (DXY) is supporting more weakness in the major.


NZD/USD stays depressed around 0.5725, after refreshing the multi-day low to 0.5693, as the holiday in New Zealand restricts the Kiwi pair’s moves on Monday. Even so, the broad US dollar strength keeps the pair bears hopeful.


The USD/CAD pair has turned sideways after printing a fresh two-decade high at 1.3623 in the Asian session. The asset is preparing for a fresh rally as it is expected to continue its four-days winning spree. A minor corrective move cannot be ruled out as the asset is continuously scaling higher and the US dollar index (DXY) also displays some signs of exhaustion after printing a fresh two-decade high of 114.52.


The USD/CHF pair is hovering around the immediate hurdle of 0.9860 in the Tokyo session as a pullback towards 0.9755 has concluded and upside momentum has resumed. The asset is preparing for a break above 0.9850 as the US dollar index (DXY) has rebounded firmly after a minute drop to near 113.62.


Oil prices fell for a second day on Monday on fears of lower fuel demand from an expected global recession sparked by rising worldwide interest rates and as a surging U.S. dollar limits the ability of non-dollar consumers to purchase crude.


Gold kicks off the new week on a weaker note and drops to its lowest level since April 2020 during the Asian session. Buying the US dollar and selling everything else remains a key theme in the markets, which turns out to be a key factor weighing on the dollar-denominated commodity. 

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