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12.10.2022 Market Report


EUR/USD has climbed above the immediate hurdle of 0.9700 in early Europe. The risk profile is still averse while the US dollar is holding the recent upside. The focus shifts to Lagarde’s speech, US inflation data and Fed minutes. 


GBP/USD continues to move at around 1.1000 in the early European session on Wednesday. The data from the UK showed that the GDP contracted by 0.3% on a monthly basis in August and Industrial Production declined by 1.8%. The US docket will feature PPI data.


USD/JPY is consolidating the latest upsurge to fresh 24-year highs near 146.40. Investors trade with caution, as the pair has surpassed the key 145.90 level, which was previously a trigger point for the Japanese intervention. US dollar extends uptrend ahead of Fed minutes. 


The AUD/USD pair has defended the downside bias firmly after sensing a decent buying interest at around 0.6240. The asset has extended its gains to near 0.6280 as the risk-on impulse has emerged. Investors are shrugging off the hawkish Federal Reserve (Fed) pessimism and are underpinning the risk-perceived currencies.


NZD/USD struggles to defend the previous day’s corrective bounce from the 2.5-year low, easing to 0.5580 ahead of Wednesday’s European session.


The USD/CAD pair has recovered sharply after a knee-jerk reaction to near 1.3783 in the early European session. The asset is aiming to knock the day’s high at around 1.3830 as the overall risk profile is extremely negative ahead of the US inflation data. The 10-year US Treasury yields have recovered some of their losses after dropping to near 3.9%.


The USD/CHF pair is displaying back-and-forth moves in a narrow range of 0.9960-0.9979 in the early Asian session as investors are awaiting the release of the Federal Reserve (Fed) minutes ahead. The pair has turned sideways after witnessing a responsive buying action to near 0.9920 as the risk-off profile found its mojo back.


Oil prices slipped for a third straight session on Wednesday as the dollar gained steam and investors braced for U.S. inflation data, while global recession risks and tightening COVID-19 curbs in China triggered worries about fuel demand.


Gold price (XAU/USD) struggles to defend the first daily gains in six around $1,670 heading into Wednesday’s European session, as sluggish markets keep the metal bears hopeful ahead of the key Federal Open Market Committee (FOMC) Meeting Minutes.

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