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10.10.2022 Market Report


EUR/USD resumes downside below 0.9750, in the face of risk-aversion and broad US dollar rebound in early European hours. Investors remain cautious amid fresh Russia-Ukraine tensions, China’s growth worries and ahead of key US events. 


GBP/USD is eyeing more weakness below 1.1050 as the US dollar rebounds on an intense risk-off impulse. Firmer US NFP data has strengthened the case of a 75 bps rate hike by the Fed. Thinner liquidity to extend due to the US holiday. 


USD/JPY holds onto the bullish bias for the fourth consecutive day even as it grinds near 145.50 during early Monday in Europe. In doing so, the yen pair remains mildly bid near the two-week high, marked during the Asian session.


The AUD/USD pair kicks off the new week on a downbeat note and drops to its lowest level since April 2020 during the Asian session. The Australian dollar continues to be weighed down by the fact that the Reserve Bank of Australia (RBA) sent a dovish signal last week and decided to slow the pace of policy tightening. 


The NZD/USD pair has stepped below the 0.5600 mark in the early Asian session as soaring risk-off bets have forced the market participants to ditch the risk-perceived assets. The asset has delivered a downside break of the minor consolidation in a 0.5597-0.5611 range and is expected to remain in the tenterhooks ahead.


The USD/CAD pair is aiming to demolish the back-and-forth moves structure that remained in a narrow range of 1.3720-1.3740 in the early European session. The asset is preparing for an impulsive rally following the footprints of the US dollar index (DXY). The DXY has refreshed its day’s high at 112.94On a broader note, the asset is oscillating around the weekly hurdle of 1.3750 and may remain in the bullish arena amid negative market sentiment.


USD/CHF struggles to extend the three-day uptrend around 0.9950 during Monday’s sluggish Asian session. That said, the Swiss currency (CHF) pair’s latest inaction could be linked to the inability to cross an important upside hurdle amid holidays in the US, Japan and Canada.


Oil fell on Monday as an unexpected contraction in China’s service sector fueled fears of slowing demand, although an OPEC supply cut and the prospect of more disruptions in Russia kept prices pinned near a one month high.


Gold price is at five-day lows below $1,700 as the US dollar cheers risk-aversion. Odds of a 75 bps Nov Fed rate hike after US NFP beat weigh on the bullion. 

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