Pre Loader

04.12.2023 Market Report


EUR/USD is dropping toward 1.0850 in the European morning on Monday. The pair is undermined by a fresh safe-haven demand for the US Dollar amid renewed geopolitical risks.  A modest uptick in the US Treasury bond yields also favors the US Dollar. EU’s Sentix and Lagarde speech awaited. 


GBP/USD is falling toward 1.2650 in early Europe on Monday. The US Dollar is finding support from the escalating Middle East conflict, weighing on the pair. However, the downside seems limited on increased Fed rate cut bets. UK/ US economic docket remains data-dry. 


Most Asian currencies steadied after strong gains on Monday, while the dollar nursed recent losses amid growing conviction that the Federal Reserve was done raising interest rates, and will begin cutting them in early-2024. 

The Japanese yen was one of the biggest beneficiaries of this notion, with the currency having recovered sharply from one-year lows in recent weeks on the prospect of easing pressure from higher U.S. interest rates.


The AUD/USD pair posts modest gains during the early Asian session on Monday. The uptick of the pair is bolstered by the weaker US Dollar (USD) and dovish messages from Federal Reserve (Fed) officials. Market players await the Reserve Bank of Australia (RBA) interest rate decision on Tuesday, which is likely to keep the rate unchanged. The pair currently trades near 0.6672, losing 0.01% on the day.


The NZD/USD pair gains momentum toward the 0.6200 round figure during the early Asian session on Monday. The speculation that the US Federal Reserve (Fed) could be done with rate hikes drags the US Dollar (USD) lower and lifts the NZD/USD. At press time, the pair is trading near 0.6210, up 0.11% on the day.


US PCE Prices Index data released on Thursday endorsed the lower inflation and softer macroeconomic scenario seen over the last week. This has boosted confidence that the Fed has reached its terminal rate and is acting as a headwind for US Dollar bulls.


USD/CHF trades above 0.8810 during the Asian session on Monday. The USD/CHF pair struggles to halt the losses due to the weaker US Dollar (USD). Last month’s October jobs report was the first one this year when the headline number came in below market expectations, though not by enough to raise concerns over the resilience of the US economy. 


Oil futures reversed course after rising briefly on Monday amid persistent pressure from the OPEC+ decision and uncertainty over global fuel demand growth, although the risk of supply disruptions from the Middle East conflict limited the losses.


Gold price is consolidating gains below $2,100, having reversed sharply from the all-time-high of $2,144 early Monday. Gold price rocketed amid increased bets of a March Fed rate cut and fresh geopolitical concerns between Yemeni Houthis and the US, as well as, Hamas and Israel. 

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.