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22.11.2022 Market Report


EUR/USD is trading sideways at around 1.0250 in early European trading. Less-hawkish commentary from Fed policymakers weighs on the US Dollar and the US Treasury yields. Meanwhile, ECB officials see the need for smaller rate increases next month. 


GBP/USD is holding onto the recovery gains at around 1.1850, as the US Dollar recovery fizzles out alongside the US Treasury yields following recent mIxed messages from the Fed officials. Brexit debates and Fedspeak will be eyed in absence of high-tier US economic data.  


USD/JPY renews its intraday low around 141.80 as it defies the four-day uptrend bullish trend during early Tuesday. In doing so, the Yen pair traces sluggish US Treasury yields amid a lack of major data/events, as well as the market’s cautious mood ahead of this week’s key catalysts scheduled for publishing on Wednesday.


The AUD/USD pair pierced the 0.6600 level on Monday, settling around it mid-American afternoon. The US Dollar appreciated on demand for safety and as global stocks edged lower. In the absence of relevant macroeconomic releases, the focus was on geopolitical developments. China’s National Health Commission reported two deaths of Covid-19 patients in Beijing, while the country reported over 26,000 new contagions on Sunday. The news spurred concerns about a potential global economic setback amid China’s strict covid policy.


The dollar retreated on Tuesday following an overnight rally that saw investors flocking to the safe-haven currency on worries over China’s COVID flare ups, though cautious risk sentiment kept the greenback supported. The kiwi was last 0.36% higher at $0.6122, after falling more than 0.8% overnight.


The Loonie (CAD) weakened against the US Dollar (USD) as market sentiment shifted sour on renewed fears over China’s Covid-19 outbreak, causing the death of three, sparking a flight to safety, while Covid cases topped April’s 2022 number. Additional factors like sliding crude Oil prices due to increasing production rumors, and overall US Dollar strength, weighed on the Loonie. Hence, the USD/CAD rallied towards the head-and-shoulders neckline, registering a new two-week high at 1.3495 before retracing to current exchange rates.


USD/CHF treads water around the weekly high near 0.9600, probing bulls after six-day advances. The major currency pair’s latest inaction could also be linked to the cautious mood ahead of Wednesday’s key data/events, as well as recently mixed signals from the US Federal Reserve (Fed) policymakers.


Oil prices rose on Tuesday following commitments to tightening supply from Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC), although concerns over slowing demand in China and a potential U.S. recession kept gains muted.


Gold price has confidently advanced to near the mark of $1,745.00 in the Tokyo session after retreating from around the cushion of $1,730.00. The precious metal has hogged the limelight as the DXY is displaying a subdued performance.

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