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03.10.2023 Market Report


EUR/USD is sitting at YTD lows near 1.0450 in the European morning on Tuesday. Hawkish Fed expectations and risk-aversion are supporting the US Dollar uptrend, weighing on the pair. US JOLTS Job Openings data is next in focus amid a light EU economic calendar. 


GBP/USD remains on the defensive near a multi-month trough touched this Tuesday. A combination of factors lifts the USD to a fresh YTD top and weighed on the major. The BoE’s surprise pause continues to weigh on the GBP and favours bearish traders.


The USD/JPY is pushing into its highest prices in eleven months, driving towards the 150.00 major handle as the US Dollar (USD) catches a broad-market ride up the charts on souring investor appetite and risk-off flows piling into the safe haven USD. The Japanese Yen (JPY) has lost almost 3% since September’s opening bids near 145.55. The Bank of Japan (BoJ) continues to chase its hyper-easy monetary policy framework, announcing an unscheduled bond purchasing exercise on Monday attempting to clamp down on spiraling Japanese government bond yields.


The AUD/USD pair consolidates its recent losses above the mid-0.6300s during the early Asian session on Tuesday. Traders prefer to wait on the sidelines ahead of the Reserve Bank of Australia (RBA) monetary policy meeting on Tuesday. RBA is likely to maintain a status quo on interest rates at its upcoming meeting. The pair currently trades near 0.6362, losing 0.02% for the day.


NZD/USD extends its losses on the second consecutive day, trading around 0.5910 during the Asian session on Tuesday. The US Dollar Index (DXY) climbed to an 11-month high, trading around 107.10 by the press time.

The Greenback strengthens on the back of higher US Treasury yield. The 10-year US Treasury yield rose above its highest level since 2007 after the United States (US) averted a partial government shutdown. The spot price stands at 4.68% at the time of writing.


The Canadian Dollar (CAD) fell 0.76% against the US Dollar (USD) on Monday, sending the USD/CAD into 1.3680 to kick off the new trading week. The pair now heads into Tuesday’s market session testing the waters into four-week highs, tapping 1.3685 after Monday saw the USD/CAD rise over 100 pips inside a single trading day, the USD’s best single-day performance against the beleaguered CAD since mid-July’s rebound from 1.3110.


The USD/CHF pair holds positive ground for two straight days but remains capped below the 0.9200 barrier during the early Asian session on Tuesday. The uptick of the pair is bolstered by the firmer US dollar (USD), higher US Treasury yield, and the hawkish comments from the Federal Reserve (Fed) officials. The pair currently trades near 0.9184, gaining 0.02% on the day.


China’s decreased oil demand is playing a significant role in the global oil market, countering recent crude price surges, according to Citigroup (NYSE:C). Analysts there highlighted this shift on Monday, underscoring China’s growing significance in the oil markets, now comparable to OPEC+


Gold has been trending lower after the Fed warned that sticky inflation was likely to attract at least one more interest rate hike in 2023. The downward trajectory remains uninterrupted for the seventh successive day on Tuesday and drags XAU/USD to the $1,815 level.

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