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15.12.2022 Market Report


EUR/USD is holding lower ground near 1.0650, as the risk-off mood gains traction, underpinning the US Dollar demand. The Fed projected a higher interest rate peak after announcing a 50 bps rate hike. The Euro awaits the ECB rate decision for fresh impetus. 


GBP/USD is trading under pressure below 1.2400 amid a pause in the US Dollar sell-off. Hawkish Fed guidance and recession fears are supporting the US Dollar. All eyes are now on the BOE policy decision, with the voting composition likely to be closely scrutinized. 


The USD/JPY pair is displaying topsy-turvy moves around 135.40 in the Asian session. The asset is cleaning the mess made by Fed policy-induced volatility through volatility contraction, which will provide a path for a decisive move ahead.


The AUD/USD pair comes under some selling pressure during the Asian session on Thursday and drifts back closer to the overnight swing low. The US Dollar stages a modest recovery from its lowest level since mid-June amid a hawkish assessment of the Federal Reserve’s policy decision on Wednesday and acts as a headwind for the major. As was widely anticipated, the US central bank delivered a 50 bps rate hike at the conclusion of its December meeting, though signalled that it will continue to raise rates to crush inflation.


The NZD/USD pair struggles to capitalize on its modest intraday uptick and attracts some sellers near the 0.6465 region on Thursday. The pair retreats to the lower end of its daily range during the early European session and is currently trading around the 0.6435-0.6430 area.


USD/CAD extends recovery from weekly low to refresh intraday high near 1.3570 during the first positive day in four amid early Thursday. In doing so, the Loonie pair takes clues from the latest rebound in the US Dollar and a pullback in Canada’s main export item, WTI crude oil.


USD/CHF holds lower grounds near 0.9260 after declining to the fresh low in 9.5 months, as the pair traders await the Swiss National Bank (SNB) Monetary Policy Meeting early Thursday. That said, the Swiss currency pair recently cheered the broad US Dollar weakness to refresh the multi-day low as the Federal Reserve (Fed) fell short of impressing the Greenback bulls despite mildly hawkish announcements.


Oil prices dipped in Asian trade on Thursday as the dollar firmed, while the possibility of further interest rate hikes from global central banks also heightened demand concerns.


Having failed to resist above the $1,800 mark, Gold price is extending the previous decline this Thursday, as the USD pauses its sell-off alongside the US Treasury bond yields. Investors assess the December US Fed policy decision and Chair Jerome Powell’s comments.   

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