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25.11.2022 Market Report


EUR/USD is trading sideways in a familiar range near 1.0400 in early European trading. US Treasury yields and the US Dollar hold the lower ground on prospects of a slower pace of the Fed’s policy tightening. Thin trading conditions to extend on Black Friday. 


GBP/USD is oscillating in a narrow band at around 1.2100 on Black Friday. The dovish FOMC minutes continue to weigh on the US Dollar and offer support. Relatively thin trading conditions hold back bullish GBP traders from placing fresh bets.


The USD/JPY pair is building a cushion around the 138.50 mark in the early European session. Signs of recovery in the USD Index (DXY) have also propelled the USD/JPY pair marginally. The US Dollar has recovered its entire morning losses and is expected to frighten the solid risk-on profile ahead. However, the bias is still in favor of risk-sensitive assets.


The AUD/USD pair is displaying a lackluster performance in the Asian session amid a quiet market mood. The Aussie asset has managed to reclaim the 0.6760 hurdle after a minor sell-off in early Tokyo. Volatility in the currency market has been squeezed dramatically as trading activity is low in the United States due to Thanksgiving Day.


The NZD/USD pair has shown a marginal impact of a decline in New Zealand Retail Sales data against the consensus. The Kiwi asset has slipped below 0.6260 after auctioning sideways in the early Tokyo session. The NZ Retail Sales data for the third quarter has landed at 0.4% vs. the expectations of 0.5% but has remained significantly higher than the prior release of -2.3%.


The USD/CAD pair remains under some selling pressure for the fourth successive day on Friday and drops to a fresh weekly low heading into the European session. Spot prices, however, manage to hold above the 1.3300 round-figure mark and remain at the mercy of the US Dollar price dynamics.


The USD/CHF pair has moved above the immediate hurdle of 0.9940 in the Tokyo session. The risk-sensitive currencies have sensed a minor selling interest as the USD Index (DXY) is displaying wild movements in the early trade. It would be early to say that the risk profile is changing as the volatility in the US Dollar arrived is not backed by any fundamental catalyst.


Oil prices rose on Friday, taking support from weakness in the dollar on some less hawkish signals from the Federal Reserve, but were headed for steep weekly losses as the outlook for demand worsened and as concerns over tightening supply eased.


Gold price is building onto the previous gains, trading at the highest level so far this week. The United States Dollar (USD) continues to lick its wounds amid a partial holiday in America on Black Friday.

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