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14.10.2022 Market Report


EUR/USD is consolidating gains below 0.9800, especially after Thursday’s tragic rebound from the fortnight low. Traders await the key US consumer-centric data on Friday. The US dollar stays on the backfoot despite hot inflation data. 


GBP/USD is trading on the defensive above 1.1300, struggling for upside traction. Chatters over UK PM Truss’ tax cut plans, Kwartang’s return to London keep traders on the edge. Softer yields weigh on the US dollar ahead of US consumer-centric data.


USD/JPY seesaws around mid-147.00s as bulls take a breather around the 32-year high heading into Friday’s European session. With this, the yen pair prints an eight-day uptrend even as the sluggish Treasury yields challenge the pair buyers by the press time.


AUD/USD adds strength to the previous day’s bounce off a 2.5-year low even as China’s inflation data for September eased, published during Friday’s Asian session. Even so, the Aussie pair remains bearish for the fifth consecutive week amid the latest divergence between the monetary policy signals from the Reserve Bank of Australia (RBA) and the US Federal Reserve. Also challenging the Aussie pair buyers are the fresh covid fears from China.


NZD/USD renews an intraday high around 0.5680 as bulls cheer a jump in China’s Consumer Price Index (CPI) during early Friday.


USD/CAD takes offers to refresh intraday low around 1.3710 during early Friday morning in Europe. On the other hand, a resurgence in the oil price is also benefitting the loonie.


The USD/CHF oscillates around parity following Thursday’s volatile session, which witnessed the major hitting a YTD high of 1.0074 before retracing to current exchange rates, despite US inflation data, justifying further Fed tightening.


Oil prices rose slightly on Friday but were set to end the week lower as a spike in Chinese COVID cases drove concerns over slowing demand, while the U.S. logged a bigger-than-expected build in crude inventories.


Gold pared its post-US CPI losses to a two-week low amid a sharp intraday USD pullback. A strong rally in the equity markets caps any further gains for the safe-haven XAU/USD. Bets for more aggressive Fed rate hikes, elevated US bond yields favour bearish traders.

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