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10.11.2023 Market Report


EUR/USD spent the Asian session in a tight band below 1.0700 but started to edge lower in the early European session. The US Dollar holds its ground following Fed Chairman Powell’s hawkish comments and doesn’t allow the pair to gain traction.


GBP/USD continues to fluctuate in a narrow channel slightly above 1.2200. The data from the UK showed that the GDP expanded at an annual rate of 0.6% in Q3. Although this reading came in above the market expectation of 0.5% it failed to provide a boost to Pound Sterling.


USD/JPY continues the winning streak for the fifth consecutive day, trading higher around 151.40 during the early European session on Friday. Federal Reserve (Fed) Chair Jerome Powell’s unexpected hawkish remarks had a notable impact, boosting US Treasury yields and strengthening the US Dollar (USD) against the Japanese Yen (JPY). However, Japanese authorities may consider intervention to curb the advance of the USD/JPY pair in response to these developments.


The AUD/USD backslid on Thursday after a bullish rebound failed to materialize, with Aussie (AUD) bulls getting pushed away from the table by US Dollar (USD) flows that saw the Greenback rise after Federal Reserve (Fed) Chairman Jerome Powell delivered hawkish comments that caught the market off-guard.


The NZD/USD pair printed a fresh five-day low marginally below 0.5900 as Federal Reserve (Fed) Chair Jerome Powell supported for raising interest rates further. The Kiwi asst fell sharply as more interest rate hikes from the Fed would widen policy divergence between the latter and the Reserve Bank of New Zealand (RBNZ).


The USD/CAD pair posts moderate losses above the 1.3800 psychological support during the Asian trading hours on Friday. A modest intraday loss in the US dollar and the recovery in oil prices cap the upside of the USD/CAD pair. The pair currently trades around 1.3805, down 0.01% on the day.


USD/CHF extends its gains for the second consecutive session, which could be attributed to the hawkish comments from US Federal Reserve (Fed) Chair Jerome Powell at the International Monetary Fund (IMF) event on Thursday. The USD/CHF trades higher near 0.9030 during the Asian trading hours on Friday.


Oil prices were up slightly on Friday but are set to fall for a third week as concerns of supply disruptions from the Israel-Hamas conflict have ebbed allowing demand worries to reassert themselves.


Gold price struggles to capitalize on the previous day’s goodish bounce from the $1,944 area, or over a three-week low and oscillates below $1,960 on Friday. Following Thursday’s rebound, the 10-year US yield holds above 4.6%, limiting XAU/USD’s upside.

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