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10.10.2023 Market Report


EUR/USD is holding lower ground near 1.0550 in the European session, having failed to sustain the recovery. The US Dollar is finding fresh demand, despite dovish Fed bets. as traders stay cautious amid the Middle East tensions. ECB Lagarde and Fed speakers are in focus. 


GBP/USD is dropping toward 1.2200 in early European trading on Tuesday. The pair is feeling the pull of gravity amid a US Dollar rebound even though risk sentiment remains slightly upbeat. Geopolitical risks weigh on the Pound Sterling. 


The USD/JPY pair attracts some buyers near the 148.15 region, or a one-week low touched during the Asian session on Tuesday and climbs to a fresh daily peak in the last hour. Spot prices, however, remain confined in a familiar range held over the past week or so and currently trade around the 148.60-148.65 area, up less than 0.10% for the day.


The AUD/USD pair struggles to capitalize on its modest intraday uptick to the 0.6430-0.6435 area. Despite escalating geopolitical tensions in the Middle East, the overnight dovish remarks by Federal Reserve (Fed) officials boosted investors’ confidence. This, in turn, could keep a lid on any further gains for the safe-haven buck and lend support to the risk-sensitive Australian Dollar (AUD). In fact, Dallas Fed President Lorie Logan noted that the progress on inflation was encouraging. Furthermore, Fed Vice Chair Philip Jefferson also sounded less hawkish and suggested the central bank should proceed carefully with any further increases in the benchmark federal funds rate.


NZD/USD continues the winning streak that began on Wednesday, trading in the positive territory near 0.6030 during the Early Asian session on Tuesday. The pair is receiving upward support as the US Dollar (USD) continues to move on a downward path. Despite the robust US Nonfarm Payrolls data released on Friday, the US Dollar (USD) did not see a significant appreciation, as US Treasury yields experienced a decline on Monday. The 10-year US Treasury bond yield stands at 4.64%, by the press time.


USD/CAD continues the losing streak on the fourth successive session, trading lower around 1.3570 during the early Asian session on Tuesday. The pair is encountering challenges stemming from a significant surge in oil prices, a trend that could be linked to the military conflict unfolding around the Gaza Strip.


USD/CHF extends its losing streak for the fifth successive day, trading lower around 0.9070 during the Asian session on Tuesday. However, the pair rebounds from the three-week low as the US Dollar (USD) attempts to halt the losing streak. Moreover, the USD/CHF pair is facing downward pressure due to the Palestine-Israel military conflict as the Swiss Franc (CHF) receives buying support due to its safe-haven status.


Indian retail inflation likely eased to 5.50% last month, within the Reserve Bank of India’s (RBI) tolerance band, on moderating food price rises and government subsidies that offset a surge in the cost of crude oil, a Reuters poll found.


Gold price advances to over a one-week high during the Asian session on Tuesday. Geopolitical tensions in the Middle East and retreating US bond yields lend support. A positive risk tone caps gains as traders look to the FOMC minutes and the US CPI.

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