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08.12.2022 Market Report


EUR/USD is holding higher ground above 1.0500 in the early European trading hours, as the US Dollar rebound fizzles despite a cautious market mood and higher Treasury yields. Concerns over the recession and hawkish Fed outlook dent risk appetite. Lagarde’s speech eyed. 


GBP/USD is trading modestly flat at around 1.2200 in early Europe. A slump in UK’s house prices and easing momentum in labor market keep bears hopeful. US Dollar remains sluggish amid pre-Fed blackout of policymakers. 


USD/JPY remains on the back foot, around 136.40, after witnessing downbeat data from Japan early Thursday in Tokyo. Even so, the Yen pair remains mostly sidelined, maybe due to the initial trading hours, after reversing from the one-week high on Wednesday.


AUD/USD defends bears around 0.6715 heading into Thursday’s European session. In doing so, the Aussie pair braces for the weekly loss while parting ways from the previous fortnight’s optimism.


NZD/USD retreats to 0.6342 while printing the first daily loss in three during early Thursday. In doing so, the Kiwi pair is on the way to defying the seven-week uptrend while bracing for the weekly loss.


USD/CAD picks up bids to 1.3685 as it pares the Bank of Canada (BOC)-led losses during early Thursday. In doing so, the Loonie pair takes clues from the US Dollar’s rebound while paying little attention to the recently firmer oil prices, Canada’s main export item.


The USD/CHF pair is displaying back-and-forth moves near the round-level hurdle of 0.9400 in the Tokyo session as investors are awaiting the release of the five-year consumer inflation expectations in the United States for further guidance. The Swiss franc asset is attempting to cross the immediate hurdle of 0.9410, however, the risk-on impulse is restricting the US Dollar from gaining strength.


Oil prices rose on Thursday as data showed U.S. inventories shrank at a faster-than-expected rate, although rampant fears of a recession dimmed the outlook for crude markets after causing sharp losses this week.


Gold price picks up bids to pare the first daily loss in three. Risk-positive headlines from China, Hong Kong appear to favor the latest XAU/USD rebound. Gold bears remain hopeful as firmer US Dollar, Treasury bond yields keep recession fears on the table

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