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03.10.2022 Market Report


EUR/USD is trading above 0.9800 in early European hours, helped by a broad sell-off in the US dollar and return of risk-on flows. Although the pair’s further upside appears elusive amid the deepening European energy crisis and growth fears. PMIs awaited. 


GBP/USD is posting sizeable gains above 1.1200, sitting at weekly highs at the start of the week. The pound catches a fresh bid following reports that UK PM Truss is considering reversing higher income tax rate cuts. PMIs coming up next. 


The USD/JPY pair trims a part of its modest intraday gains to over a one-week high and quickly retreats to sub-145.00 levels during the early European session.


AUD/USD is paring back gains towards 0.6400, having met fresh supply on a rejection near the 0.6450 mark. Bears are fighting back control, as the US dollar recovery is gaining traction amid strengthening risk-off flows in the late Asian session.


The NZD/USD pair has rebounded firmly after picking bids around 0.5600 in the Tokyo session. Last week, the asset declined after failing to cross the critical hurdle of 0.5750. The kiwi bulls witnessed an intense sell-off despite a decline in the monthly Consumer Price Index (CPI) data. The monthly inflation data declined to 6.8% from the prior release of 7%.


The USD/CAD pair kicks off the new week on a weaker note and reverses a part of Friday’s positive move to its highest level since May 2020. Crude oil prices rise nearly 3% amid reports that OPEC+ will consider an output cut of more than 1 million bpd – the biggest since the COVID-19 pandemic – at its meeting on October 5 to support the market.


The USD/CHF pair is hovering between 0.98500 and 0.98650 in anticipation of the Manufacturing PMI.


Oil jumped on Monday as OPEC+ considers a cut to output this week, while Asia shares were mixed with holidays in the Asia-Pacific region likely to result in thin trading.


Gold is trading with modest gains while finding stiff resistance at the $1,670 hurdle. The week ahead will be focused once again on the Fed in the run-up to the NPFs. Markets are closed in China and Australia, with thinner liquidity to extend ahead of US ISM PMI. 

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