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18.11.2022 Market Report


EURUSD is defending early gains above 1.0350 in the European session. The pair fails to find support from ECB Chief Lagarde’s comments while the US Dollar struggles alongside the Treasury yields amidst hawkish Fedspeak amid China’s reopening optimism. 


GBPUSD is extending gains above 1.1900, as the US Dollar comes under fresh selling pressure. Investors reassess the UK’s fiscal plan on the last trading day of the week. Meanwhile, the data from the UK revealed that Retail Sales rose by 0.6% in October.


USDJPY prints mild losses around 140.00 as bulls take a breather after a two-day uptrend during Friday morning in Europe. Even so, the Yen pair remains on the way to snapping the four-week downtrend on a weekly basis. In addition to that, the US Dollar struggles to justify hawkish comments from Federal Reserve officials.


The AUDUSD pair builds on the overnight bounce from the 0.6635-0.6630 area, or the weekly low and gains some positive traction on the last day of the week. The pair, however, retreats a few pips from the daily high and trades around the 0.6700 mark during the early European session.


NZDUSD has corrected the session’s sell-off. The bird rallied from a low of 0.6064 and is testing 0.6120 towards the close on Wall Street. However, longs are still trapped up high near the pair’s strongest levels in nearly three months. 


Crude Oil prices languish near their monthly low amid concerns that a new COVID-19 outbreak in China will weaken fuel demand in the world’s largest importer. This, in turn, undermines the commodity-linked Loonie and offers some support to the USDCAD pair, though subdued US Dollar demand acts as a headwind for spot prices.


The USDCHF extended its weekly rally, to four consecutive days, after registering a new seven-month-old low around 0.9356 on Monday. However, hawkish commentary by US Federal Reserve (Fed) speakers shifted sentiment sour for the benefit of the US Dollar (USD). Hence, the USDCHF is trading at 0.9518, above its opening price by 0.86%.


World stocks were heading on Friday for a 1% loss on the week, drifting from recent two-month highs after U.S. Federal Reserve officials fired more warning shots on interest rates, while the U.S. bond yield curve priced for a recession.


Gold price is posting small gains while holding the fort above $1,760, as the US dollar fluctuates between gains and losses amid a risk-on market profile. The renewed uptick in the US Treasury yields checks the upside in the bright metal ahead of the US housing data. 

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