Pre Loader

06.12.2022 Market Report

EUR/USD

EUR/USD is trading under pressure below 1.0500, as traders await more clues in early Europe. The US Dollar finds fresh demand amid a negative shift in the market’s risk perception and hawkish Fed tightening view. 

GBP/USD

GBP/USD remains offered toward 1.2150, as traders turn cautious in early Europe. Risk-off flows seep back and revive the demand for the safe-haven US Dollar. The greenback also cheers the robust US data and renewed hawkish Fed outlook. 

USD/JPY

The USD/JPY pair has extended its upside move to near 137.00 after sustaining above the critical hurdle of 136.00 in the Tokyo session. The asset is witnessing time correction after printing the day’s high at 137.17. The major is expected to deliver more gains ahead amid a risk-off market mood.

AUD/USD

AUD/USD justifies the Reserve Bank of Australia’s (RBA) hawkish hike as it prints the first daily gains in three around 0.6730 heading into Tuesday’s European session. In doing so, the Aussie pair also cheers the US Dollar’s retreat amid a sluggish day.

NZD/USD

The NZD/USD pair has sensed selling pressure while reclaiming the critical hurdle of 0.6350 in the Asian session. Earlier, the Kiwi asset attempted a recovery after dropping to near the 0.6300 mark. It seems that the risk aversion theme has regained traction and risk-perceived assets are facing the heat again.

USD/CAD

The USD/CAD pair oscillates in a narrow band on Tuesday and consolidates the overnight strong rally of around 220 pips from sub-1.3400 levels. The pair holds steady near a one-week high through the early European session, with bulls now awaiting a sustained strength beyond the 1.3600 round-figure mark.

USD/CHF

USD/CHF snaps a two-day rebound from the eight-month low as it prints mild losses near 0.9425 during Tuesday’s Asian session.

CRUDE OIL

Crude oil prices edge high and recover a part of the previous day’s slump of nearly 6.5% amid hopes for a recovery in fuel demand amid the easing of COVID-19 curbs in China. This, in turn, underpins the commodity-linked Loonie and acts as a headwind for the USD/CAD pair. The downside, however, remains cushioned amid the emergence of some US Dollar buying, bolstered by bets that the Federal Reserve may raise interest rates more than projected.

GOLD

Gold price bounces off the one-month-old low to pare the biggest daily loss in 10 weeks. US inflation expectations challenge hawkish hopes from Federal Reserve. Optimism surrounding China adds strength to XAU/USD recovery.

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.