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26.10.2022 Market Report


EUR/USD is marching towards parity as the odds of a bigger rate hike by the ECB have strengthened. Mixed responses from the risk profile have put the DXY on the sidelines. All eyes remain on risk sentiment amid a quiet data docket. 


GBP/USD is consolidating its retreat around 1.1450, as the US dollar finds demand amid a cautious market mood. Investors turn cautious amid discouraging US tech giants’ earnings, flagging recession fears. Cable buyers remain expectant of UK political stability. 


The USD/JPY pair has comfortably shifted its business above the critical hurdle of 148.00 in the Asian session. As the risk-off impulse has returned, the asset has witnessed a fresh demand at around 148.00.


The AUD/USD pair has jumped to 0.6400 as the Australian Bureau of Statistics has reported the headline Consumer Price Index (CPI) for the third quarter of CY2022 at 7.3%, higher than the expectations of 7.0% and the prior release of 6.1% on an annual basis. Also, the quarterly inflation rate has landed in line with the former print of 1.8% and higher than the projections of 1.5%.


The NZD/USD pair is gradually heading towards the 0.5800 mark as the risk-on profile is strengthening significantly. The asset witnessed fresh demand from 0.5680 on Tuesday, which turned into a vertical rally to near 0.5780. The major is holding its gains amid an improvement in investors’ risk appetite.


USD/CAD is trading on the defensive while keeping its range around the 1.3600 level, as the US dollar recovery fizzles out amid a strong advance in Asian equities. Investors shrug off the drop in the S&P 500 futures, led by the downbeat earnings reports of Microsoft and Alphabets after the US markets close.


The USD/CHF pair is hovering around the immediate mark of 0.9940 in the early Tokyo session. Earlier, the asset witnessed a steep decline after surrendering to the 1.0000 mark. Rising optimism in market spirit resulted in a significant decline in safe-haven’s appeal.


Asian shares edged higher on Wednesday as investors clung to hopes that the pace of U.S. and global rate hikes will start to slow, though U.S. futures dropped after disappointing results from tech giants Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT).


Gold price has recovered firmly to near $1,650.00 amid a subdued DXY’s performance. The risk-on profile is attempting to regain traction as yields have slipped further below 4.10%. This week, the US GDP will be a key event for making informed decisions.

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