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22.12.2022 Market Report


EUR/USD is attempting a rebound toward 1.0650 in Thursday’s Asian trading. The US Dollar comes under renewed selling pressure amid a risk-on market profile, as investors finally see a ‘Santa rally’ coming through. 


GBP/USD is printing mild gains above 1.2100, reversing the previous day’s loss ahead of the final Q3 GDP data from the UK and the US. The US Dollar weakness amid a risk-on market mood is underpinning the Cable. 


USD/JPY picks up bids to consolidate intraday losses around 131.90 during early Thursday. Even so, the Yen pair remains mildly offered while reversing the previous day’s rebound from a four-month low.


AUD/USD grinds near an intraday high of 0.6765 heading into Thursday’s European session. In doing so, the Aussie pair seesaws near the weekly top amid mixed news surrounding Australia and China, while cheering the US Dollar’s pullback on softer Treasury bond yields.


DXY has been pressured below the 104 mark on Wednesday but is holding losses after the Bank of Japan unexpectedly raised the upper limit of its tolerance band on 10-year government bonds to 0.5% from 0.25%. However, an upcoming recession could keep the Federal Reserve from holding interest rates at higher levels in the FOMC’s projections last week to tame inflation, supporting the greenback and playing into the hands of the bearish NZD/USD thesis


USD/CAD was unchanged on Wednesday despite domestic data that showed underlying inflation pressures picking up. However, from a technical perspective, the bias is to the upside as the following will illustrate.


The Swiss Franc (CHF) pair bounced off its weekly low the previous day before retreating from 0.9290. Even so, the quote ended Wednesday on a negative note as hawkish details of the Swiss National Bank’s (SNB) quarterly report jostled with the mixed US data.


Oil prices climbed for a fourth straight day on Thursday with U.S. crude, heating oil jet fuel stocks growing tighter just as a wintry blast hits the United States and travel is set to soar for its holiday season.


Gold price grinds higher at the intraday top near $1,820, reversing the previous day’s pullback from a one-week high, as markets sneak into a holiday mood during early Thursday. Also favoring the metal price could be the recent pullback in the USD.

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