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14.11.2022 Market Report


EURUSD is trading close to 1.0300 in early Europe, undermined by a broad-based US Dollar rebound. Fed Governor Waller’s warnings lifted the US Dollar alongside the Treasury yields while a cautious tone ahead of the Xi-Biden meeting also weighs on the pair. 


GBPUSD is holding lower ground near 1.1750, snapping a two-day uptrend in early Europe. The pair tumbles amid a decent recovery in the US Dollar, as US Treasury yields rebound on Fed Governor Waller’s remarks. Markets stay cautious ahead of the Xi-Biden meeting at the G20. 


USDJPY licks its wounds at a 2.5-month low as it consolidates recent losses with 0.70% intraday gains around 139.50 as markets in Tokyo open for Monday. In doing so, the yen pair justifies the recent cautious mood as bond traders return from a long weekend. Also likely to have challenged the USDJPY bears is the anxiety ahead of a meeting between US President Joe Biden and China’s Prime Minister Xi Jinping on the sidelined of the Group of 20 Nations (G20) gathering in Bali.


The Aussie dollar is stronger this morning when valued against the Greenback. The Australian Dollar continued its rally for the second consecutive day on Friday, the highest level since September 21, buoyed by a weak US dollar on the back of increasing hopes that the US Federal Reserve will start to relax its monetary tightening path over the coming months.


The NZDUSD pair is displaying back-and-forth moves in the Tokyo session after reclaiming the 0.6100 hurdle. The commodity-linked currency is gaining momentum as the pullback move in the US dollar index (DXY), recorded at open, has started fading.


The USDCAD pair is displaying a rangebound structure after gauging the cushion around 1.3250 in the Tokyo session. The risk-on impulse has started fading led by rising volatility ahead of the outcome of the US midterm elections and the extended weekend due to the Veterans Day holiday last Friday. The risk-sensitive currencies are facing a loss in the upside momentum.


The USDCHF pair has extended its recovery after overstepping the intraday hurdle of 0.9455 in the Asian session. As the risk-on impulse is losing its steam after remaining at the driver’s seat, the risk aversion theme is gaining traction. Six-day losing streak in USDCHF has been halted for now.


Oil prices rose on Monday as markets bet that an eventual scaling back of COVID-19 measures in China will boost the country’s crude demand, while looming curbs on Russian oil shipments also appeared set to tighten supply.


Gold price has kicked off the week on the wrong footing, retreating from three-month highs of $1,772, as investors stay cautious amid the latest crypto market debacle, China’s rescue policies and the latest remarks from the Fed Governor Christopher Waller.

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