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02.11.2023 Market Report


EUR/USD is trading at around 1.0600 in the European morning on Thursday. A sustained  US Dollar weakness, following the extended Fed pause decision and a non-committal Fed Chair Powell, lifts risk sentiment and weighs on the US Dollar alongside the US Treasury bond yields. 


GBP/USD has entered a phase of consolidation after running into the 1.2200 barrier. Pound Sterling bulls catch a breather, gearing up for the Bank of England’s (BoE) policy announcements on ‘Super Thursday’. 


The USD/JPY pair extends the overnight retracement slide from the 151.70 area, or its highest level since October 2022 and drifts lower for the second successive day on Thursday. Spot prices currently trade just above the 150.psychological mark, down over 0.50% for the day, though any meaningful corrective decline still seems elusive.


The AUD/USD pair builds on the previous day’s strong move up and gains some follow-through positive traction for the second successive day on Thursday. The momentum is fueled by the post-FOMC US Dollar (USD) weakness and lifts spot prices to the 0.6435 area or a three-week top during the Asian session.


The NZD/USD is churning near 0.5870, looking for further upside as the US Dollar (USD) recedes across the broader market, giving the Kiwi (NZD) a leg up the charts heading into the Thursday market session.


The USD/CAD pair remains under some selling pressure for the second successive day on Thursday and extends the overnight rejection slide from the 1.3900 mark, or its highest level since October 2022. The downtick drags spot prices to the 1.3825 area during the Asian session and is sponsored by a combination of factors.


The USD/CHF retreats some from daily highs reached at 0.9107, though it remains trading within the 0.9090/0.9107 area after the US Federal Reserve (Fed) decided to keep rates unchanged at the 5.25%-5.50% range while continuing to reduce its security holdings (balance sheet).


Oil gained more than 1% on Thursday to snap its three-day decline, as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold.


Gold price gains positive traction on Thursday amid sliding US bond yields and a weaker USD. Geopolitical tensions and China’s economic woes also contribute to the intraday positive move.  A further rise in equity markets caps any meaningful upside for the safe-haven precious metal.

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