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16.12.2022 Market Report


EUR/USD is consolidating gains near 1.0650 in the early European morning. The US Dollar is reversing the previous recovery, despite a cautious mood and higher Treasury bond yields. All eyes now remain on the Eurozone/ US PMIs. 


GBP/USD regains 1.2200 as it consolidates the recent losses amid a sluggish Friday morning in Europe. Cable portrays the trader’s positioning before the key UK/US data after bears cheered the BoE dovish rate hike with the biggest daily slump in six weeks.


USD/JPY is under pressure in Asia, attempting to correct the US Dollar’s rally from the prior day. At the time of writing, USD/JPY is down by some 0.28%, falling from a high of 137.80 to a low of 137.35 so far. 


AUD/USD retreats from intraday high to 0.6700 amid early Friday morning in Europe. In doing so, the Aussie pair takes clues from the options market while defending the previous day’s bearish bias that portrayed the quote’s heaviest slump in 33 months.


NZD/USD has faced resistance of around 0.6380 in the early European session. The New Zealand Dollar major asset delivered a recovery after dropping to near 0.6320 and stretched its recovery in the Tokyo session as the risk-off impulse witnessed ease. However, the aversion theme is extremely solid on a broader note. The recovery move in the Tokyo session should not be considered a reversal for now as it needs more filters.


USD/CAD takes offers to refresh intraday low around 1.3630 as it pares the previous day’s losses during a sluggish Friday morning. The Loonie pair rallied the most in three weeks on Thursday amid the broad US Dollar run-up and softer prices of Canada’s key export item, WTI crude oil. However, the absence of major data/events during the early day and the cautious mood ahead of the US activity numbers for December seemed to have triggered the quote’s latest pullback.


USD/CHF stays pressured around the intraday low near 0.9270 as it reverses the previous day’s rebound from a multi-day bottom during Friday’s sluggish Asian session. The Swiss Franc (CHF) pair’s previous recovery could be linked to the market’s rush for the US Dollar in search for safety as major central banks, including the Swiss National Bank (SNB), announced rate hikes. Not only that, the policymakers’ readiness to keep the rate higher for longer also favored the US Dollar’s safe-haven demand.


Oil’s three-day rally snapped on Thursday as the Keystone pipeline reopened from closure and risk assets from stocks to oil came under renewed pressure from a Federal Reserve bent on keeping interest rates up until inflation dropped convincingly. 


Gold price is struggling to sustain above the crucial $1,780.00 mark in the early European session. The precious metal is facing immense pressure as the western central banks have hiked their interest rates to gain strength in their battle against stubborn inflation.

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