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27.10.2023 Market Report


The EUR/USD pair struggles to capitalize on the previous day’s bounce from the 1.0520 area, or over a one-week low and edges lower during the Asian session on Friday. Spot prices trade with a mild negative bias for the fourth straight day, albeit manage to hold just above mid-1.0500s.


The GBP/USD pair struggles to capitalize on the previous day’s goodish rebound from the 1.2070 area, or over a three-week low and seesaws between tepid gains/minor losses during the Asian session on Friday. Spot prices manage to hold comfortably above the 1.2100 round-figure mark. 


The USD/JPY is trading into 150.40 with markets largely unfazed by the Tokyo Consumer Price Index (CPI) inflation data beat. Japan’s leading Tokyo CPI inflation indicator saw an uptick in Japanese inflation, with the headline annualized Tokyo CPI inflation for October printing at 3.3%, compared to the previous month’s 2.8% print.


The AUD/USD pair holds above 0.6300 after bouncing off the year-to-date (YTD) lows at 0.6270 during the early Asian session on Friday. A modest recovery of the pair is bolstered by the correction of the US Dollar (USD) and the possibility of more rate hikes from the Reserve Bank of Australia (RBA) at its November meeting. The pair currently trades around 0.6325, gaining 0.06% on the day. 


The NZD/USD set a fresh low of 0.5772 for 2023, the pair’s lowest bid since November of last year. After chalking in a new yearly low, the Kiwi (NZD) caught a much-needed rebound and heads into the Friday Asia market session trading near 0.5820.


The USD/CAD pair comes under some selling pressure during the Asian session on Friday and for now, seems to have snapped a three-day winning streak to a multi-month top, around the 1.3840-1.3845 area touched the previous day. Spot prices currently trade around the 1.3805-1.3810 region, down over 0.15% for the day, though any meaningful corrective slide seems elusive.


The USD/CHF pair faced some selling pressure after printing a four-day high near the psychological resistance of 0.9000 in the European session. The Swiss Franc asset corrected gradually as the US Dollar struggled for upside ahead of the US Q3 Gross Domestic Product (GDP) data, which will be published at 12:30 GMT.


Oil prices rose by over $1 on Friday as reports that the U.S military struck Iranian targets in Syria raised concerns of a widening of the Israel-Hamas conflict that could impact supply from the key Middle East producing region.


Gold is treading water above $1,980 early Friday, taking a breather after Thursday’s volatile trading. Markets weigh a likely Japanese FX intervention, strong United States Gross Domestic Product data, lingering Middle East concerns and upbeat Inc earnings, as the focus shifts to the US inflation data.

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