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11.12.2023 Market Report


EUR/USD is trading sideways above 1.0750 in early Europe on Monday. The pair defends bids amid a modest risk-recovery and sluggish US bond yields. The US Dollar is struggling for upside traction, as traders refrain from placing fresh bets ahead of Tuesday’s US inflation data. 


 GBP/USD is holding steady near 1.2550, lacking a clear directional bias in European morning on Monday. The pair is struggling amid investors’ caution ahead of key economic data and central banks’ meetings from the US and the UK this week. 


Most Asian currencies fell on Monday, with the Chinese yuan among the worst performers after data pointed to a sustained deflationary trend in the country, while the dollar steadied in anticipation of a Federal Reserve meeting. The Japanese yen fell 0.3%, but traded close to four-month highs hit last week following a slew of hawkish signals from the Bank of Japan. But the BOJ is still expected to keep policy ultra-loose in the near-term. 


The AUD/USD pair edges lower below the 0.6600 barrier during the early Asian session on Monday. The upbeat US Nonfarm Payrolls data lift the US Treasury bond yields and the US Dollar (USD). The pair currently trades around 0.6572, down 0.09% on the day.


NZD/USD extends its losses for the second consecutive trading session, bidding around 0.6120 during the Asian hours on Monday. The robust employment data has sparked an upward movement in US bond yields, contributing to the strengthening of the US Dollar (USD) and consequently exerting pressure on the Kiwi pair.


USD/CAD recovers its recent losses as the US Dollar (USD) attempts to gain ground for the second successive day. The USD/CAD pair trades higher around 1.3600 during the Asian session on Monday. However, the stronger Crude oil prices could limit the losses of the Canadian Dollar (CAD).


USD/CHF hovers around 0.8800 during the Asian trading hours on Monday, grappling to extend its profits for the third successive session. The USD/CHF pair has been on an upward trajectory, propelled by positive employment data from the United States (US). The rise in US bond yields, driven by speculations about the Federal Reserve’s (Fed) rates trajectory, is further strengthening the US Dollar (USD) and providing support to the USD/CHF pair.


Oil prices rose on Monday, extending gains for a second session as U.S. efforts to replenish strategic reserves provided some support, although concerns of crude oversupply and softer fuel demand growth next year persisted.


Gold price remains under some selling pressure for the second successive day on Monday. Reduced bets for a March Fed rate cut move and a modest USD uptick weigh on the metal. Geopolitical risks could help limit further losses ahead of this week’s key data/event risks.

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