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03.11.2022 Market Report


EUR/USD is trading above 0.9800, defending mild gains amid a sluggish Thursday European morning. The pair licks its wounds following the hawkish Fed-induced sell-off while the US dollar struggles to find fresh demand. ECB’s Lagarde, US ISM PMI awaited. 


GBP/USD is clinging to recovery gains above 1.1400, as the US dollar rally takes a breather, despite a cautious mood and higher Treasury yields on hawkish Fed. The pair’s further upside appears elusive ahead of the all-important BoE rate hike decision. 


USD/JPY bears keep the reins for the third consecutive day even as Tokyo cheers the Culture Day holiday. That said, the quote’s latest weakness could be linked to the US dollar’s failure to keep the post-Fed gains, as well as sluggish yields. Also exerting downside pressure on the yen pair could be the fears emanating from North Korea’s test-firing of missiles toward Japan and South Korea.


AUD/USD seesaws near intraday high surrounding 0.6360 despite downside China PMI data during early Thursday. The reason could be linked to the early-day releases of Aussie trade numbers and the US dollar’s consolidation of the Fed-inspired gains.


The NZD/USD pair has displayed a pullback move after dropping to near 0.5800 mark in the Tokyo session. The pullback move seems to lack confidence as the market pulse is still risk-averse after the hawkish stance on policy rates and the Federal Reserve (Fed) guidance.


The USD/CAD pair has sensed selling pressure after registering a fresh weekly high at 1.3724 in the Tokyo session. The responsiveness of a decline in the asset is marginal compared with the late New York rally. Therefore, it would be early to announce that the risk aversion theme has faded. S&P500 futures have displayed a rebound, while the US dollar index (DXY) has dropped below the critical support of 112.00.


USD/CHF grinds higher past the 1.0000 psychological magnet during early Thursday as bulls take a breather after a volatile move around the Federal Open Market Committee (FOMC) announcements. That said, the Swiss currency (CHF) pair picks up bids to 1.0030 by the press time. In addition to the post-Fed calm, the anxiety ahead of the Swiss Consumer Price Index (CPI) data for October and the US ISM Services PMI for the said month also challenge the pair buyers of late.


Oil prices retreated from a three-week high on Thursday after weak economic data from China pointed to more trouble in the world’s largest crude importer, while the outlook for demand was also dimmed by the prospect of higher U.S. interest rates.


Gold price is attempting a tepid bounce after seeing volatile trading on the Fed announcements on Wednesday. XAUUSD buyers are trying their luck once again, as traders gear up for another central bank event, the BoE interest rate hike decision due later this ‘Super Thursday’.

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