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21.10.2022 Market Report


EUR/USD picks up bids to pare intraday losses, braces for the first weekly gain in three. Yields dribble around multi-year high as markets wait for fresh clues. Eurozone preliminary Consumer Confidence for October will be important as well.


GBP/USD meets with a fresh supply on Friday and is pressured by a modest USD strength. The overnight rejection near a two-month-old descending trendline favours bearish traders. Weakness below the weekly low is needed to support prospects for further near-term losses.


The USD/JPY pair continued its 12-day winning streak on Friday by overstepping Thursday’s high at 150.29. The asset is not reacting to any rebound in the risk-on impulse but is capitalizing negative market sentiment period effectively. 


The AUD/USD pair has sensed selling pressure while attempting to cross the critical hurdle of 0.6280 in the Tokyo session. As the risk-off impulse has rebounded with sheer momentum, risk-sensitive currencies are feeling the heat. The asset traded sideways in early Tokyo, however, the infused volatility in the market may drag it sharply.


NZD/USD could be on the verge of a final long squeeze into positions that have been in the money since the start of the week. The US dollar is preparing its upmove as US yields tear into fresh bulls cycle highs. The following illustrates the prospects for a sell-off into last week’s lows for a fresh low on the week down to 0.5512.


USD/CAD grinds higher around the intraday top near 1.3790 during early Friday morning in Europe. In doing so, the Loonie pair ignores the downbeat signals from the options market.


The USD/CHF pair has overstepped its immediate hurdle at 1.0050 in the Tokyo session and is pulling up socks to test a three-year high at 1.0074, recorded on October 13. A dismal market mood led by late selling in S&P500 amid upbeat yields has underpinned the greenback bulls.


Oil prices fell on Friday after a warning on economic growth from the Federal Reserve, but were still set to end the week higher on positive signals from China and on the prospect of tightening supply in the coming months.


Gold price is licking its wounds while trading close to three-week lows near $1,620 on the final trading day of the week, heading for the second consecutive weekly decline. The bright metal continues to feel the heat of the multi-year highs reached in the US Treasury yields.

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