Pre Loader

04.10.2023 Market Report


EUR/USD remains on the defensive around 1.0470 amid a US Dollar upside consolidation. The pair’s rebound appears capped by firmer US Treasury bond yields, in the face of hawkish Fed bets. Traders look to ECB Lagarde’s speech and EU data ahead of the US ADP jobs report. 


The GBP/USD pair extends its consolidative price move for the second successive day on Wednesday and remains well within the striking distance of the lowest level since March 16 touched the previous day. Spot prices trade below the 1.2100 mark during the Asian session and seem vulnerable to prolonging a nearly three-month-old downtrend from a 15-month peak set in July.


The USD/JPY pair gains some positive traction during the Asian session on Wednesday and moves further away from its lowest level since September 14, around the 147.25-147.30 area touched the previous day. Spot prices trade around the 149.20 region, up 0.15% for the day, though lack bullish conviction in the wake of jawboning by Japanese authorities to defend the domestic currency.


The AUD/USD is pinned into the 0.6300 level after the Reserve Bank of Australia (RBA) kept its benchmark rate at 4.1% on Tuesday. The RBA was broadly forecast to stand pat on interest rates for their fourth straight meeting as inflation expectations ease, though the RBA Governor Michele Bullock noted that inflation is likely to remain on the high side until sometime in 2025.


NZD/USD continues the losses on the third day amid risk-off sentiment due to US Federal Reserve’s (Fed) interest rates trajectory. Additionally, the Reserve Bank of New Zealand (RBNZ) decided to hold the Official Cash Rate (OCR) unchanged at 5.5%, as widely expected, which adds up the pressure on the Kiwi pair.


USD/CAD traces the upward path on the fourth successive day, trading higher near 1.3710 during the Asian session on Wednesday. The pair is experiencing upward support amid cautious sentiment due to the US Federal Reserve’s (Fed) interest rates trajectory.


USD/CHF traces the upward path due to the firmer US data and weaker-than-expected Switzerland’s inflation figures. The Swiss Consumer Price Index (CPI) for September, increased to 1.7% (YoY) from the previous 1.6% rise, falling short of expectations at 1.8%.


Oil fell on Wednesday ahead of a panel meeting of OPEC+ ministers, as the market weighed expectations of supply tightness against fears that high interest rates could reduce fuel demand.


Gold dived to a near seven-month low on Tuesday and recorded losses for the seventh straight day – its longest losing streak since August 2022. The yellow metal found some support near the $1,815 region, though it struggled to gain any meaningful traction and remained on the defensive.

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.