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19.10.2023 Market Report


EUR/USD is moving back and forth in a tight range of around 1.0800 in early Europe. The pair is supported by falling US Treasury yields, which are weighing on the US Dollar amid looming recession fears. Traders await ECB Lagarde’s speech and policy accounts for a clear direction. 


The GBP/JPY cross extends the previous day’s retracement slide from the 161.50 region, or a three-week high and remains under heavy selling pressure on Thursday. Spot prices snap a three-day winning streak and drop back closer to mid-157.00s, hitting a fresh daily low heading into the European session.


USD/JPY holds lower grounds near 128.00 as it fades the previous day’s run-up amid softer Treasury bond yields, as well as downbeat US Dollar. The Yen pair pays little heed to the fears emanating from downbeat foreign trade numbers from Japan and the US recession concerns.


AUD/USD holds lower ground near the intraday low near 0.6890 as the previous monthly top probes the bears during the second loss-making day amid early Thursday in Europe. In doing so, the Aussie pair extends the previous day’s pullback from the highest levels since August 2022 amid a downbeat Australian employment report for August, as well as growing fears of recession.


The NZD/USD pair edges lower during the Asian session on Thursday and moves away from its highest level since June 2022, around the 0.6530 area touched the previous day. Spot prices, however, manage to hold above the 0.6400 mark, making it prudent to wait for strong follow-through selling before positioning for any further intraday downfall.


The USD/CAD pair has witnessed a pause after a juggernaut rally around 1.3500 in the early Asian session. The Loonie asset is expected to turn sideways as the US Dollar bulls will need more fuel to extend the rally further. The major witnessed a steep fall amid a plunge in the oil price, which weakened the Canadian Dollar.


The USD/CHF pair is oscillating in a narrow range below the crucial hurdle of 0.9180 in the early Tokyo session. On Wednesday, the Swiss Franc asset displayed a V-shape recovery after recording a fresh 14-month low at 0.9085 as the United States Producer Price Index (PPI) and retail sales December report remained lower than anticipation. Hawkish commentaries from Federal Reserve (Fed) policymakers remained responsible for infusing strength into the US Dollar again and pushing USD/CHF to near 0.9180.


Oil prices fell further on Thursday as industry data signaled another big weekly build in U.S. crude inventories, while weak economic data and a potential rise in interest rates fanned growing fears over a looming recession.


Gold price has rebounded firmly and has surpassed the immediate mark of $1,910.00 in the early European session. The precious metal is gaining strength amid falling returns on US government bonds. 

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