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26.10.2023 Market Report


EUR/USD is trading near 1.0550, on the defensive at weekly lows early Thursday, as traders await the European Central Bank (ECB)  interest rate decision. The expected ECB pause and a downbeat mood-led US Dollar demand undermine the pair. US Q3 GDP eyed as well. 


GBP/USD is back under 1.2100 in early Europe on Thursday, extending this week’s decline from the vicinity of 1.2300. The pair is pressured by risk-aversion, in the face of Mideast tensions and surging US bond yields, which boost the US Dollar ahead of the key GDP release. 


The USD/JPY continues to cycle close to the 150.00 major handle, and the pair has constrained into a tight holding pattern after failing to make a meaningful break after tipping into 150.16 at the beginning of October.


The Australian Dollar (AUD) extends losses for the second session, trading around yearly lows against the US Dollar (USD) on Thursday. The AUD/USD pair faces a challenge on the upbeat Greenback, which could be attributed to the improved US Treasury yields.


NZD/USD marks an 11-month low, hovering around 0.5790 during the Asian session on Thursday. The pair could reach November’s low during the session. The Kiwi Dollar grapples with pressure, a predicament exacerbated by the recent release of headline Consumer Price Index (CPI) data. This sentiment is prompting investors to ease their expectations for an interest rate hike by the Reserve Bank of New Zealand (RBNZ).


The USD/CAD pair gains traction above the 1.3800 psychological round mark during the early Asian session on Thursday. The renewed US Dollar (USD) demand amid the risk-off sentiment lends some support to the pair. USD/CAD currently trades near 1.3813, up 0.13% on the day.


The USD/CHF saw gain for a third consecutive day, jumping towards 0.8960. On the USD side, positive Housing Market data and higher US yields made the green currency find demand. On the other hand, weak expectations data from Switzerland seems to be weakening the CHF.


Asian stocks slid to 11-month lows on Wednesday, U.S. futures dropped and the dollar surged as Treasury yields spiked back toward peaks on fears that U.S. interest rates will stay high.


Gold is building on the previous upswing early Thursday, capitalizing on broad risk-aversion, as Middle East tensions grab attention once again. XAU/USD price is paying little heed to the recent upbeat momentum in the US Dollar alongside the US Treasury bond yields.

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