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05.10.2022 Market Report


EUR/USD is turning south towards 0.9950 after meeting fresh supply just below the parity mark. The broad US dollar rebound is aiding the renewed downside in the main currency pair.


GBP/USD is eyeing weakness to near 1.1400 as a corrective move, however, the upside remains favored. Pound bulls have been strengthened after the UK govt. rollback the tax reduction memorandum.


The USD/JPY pair has turned sideways around 144.20 after witnessing a responsive buying action from 143.60 as the US dollar index (DXY) has rebounded. The DXY has picked bids around 110.20 and is aiming to extend recovery above 110.47.


The AUD/USD pair has sensed buying interest around 0.6480 as the pullback move in the US dollar index (DXY) seems terminating now. Traction is returning towards the risk-on market profile as yields have dropped from day’s high. The 10-year US Treasury yields have eased sharply after recording the day’s high at 3.64% and have slipped to 3.62% while writing.


NZD/USD has turned neutral on the day at around 0.5735, reversing the entire RBNZ rate hike outcome-induced rally above 0.5800.


The USD/CAD pair has turned sideways in early Asia after dropping to near 1.3500. The major is expected to surrender towards 1.3500 and will deliver more weakness ahead. On a broader note, the asset shifted into a negative trajectory after dropping below 1.3600.


The USDCHF pair has dropped since Tuesday which may be linked with the positivity which exists in the DXY and S&P500. The DXY has picked bids around 110.20 and is aiming to extend recovery above 110.47. S&P500 futures have dropped more than 0.5% as the risk profile has soured a bit after remaining extremely positive.


Oil rose by nearly $3 a barrel on Tuesday on expectations of a large cut in crude output from the OPEC+ producer group and as a weaker U.S. dollar made oil purchases less expensive.


Gold price is retreating from three-week highs, as the US dollar finds demand. The metal awaits critical US economic data for clarity on the Fed’s policy. $1,730-$1,735 supply zone appears a tough nut to crack for XAU/USD bulls.

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