Market Update - 27 October 2022

USD/JPY continues losing ground for the third straight day and drops to a multi-week low. The recent suspected intervention by the BoJ underpins the JPY and exerts some pressure. An uptick in the US bond yields revives the USD demand and helps limit any further losses. Traders now eye US macro releases for a fresh impetus ahead of the BoJ meeting on Friday. (FXStreet)

The index attempts a mild recovery below 110.00 on Thursday. US yields regain some poise and trade with modest gains. Durable Goods Orders, Flash Q3 GDP, Initial Claims next on tap. The greenback, when tracked by the USD Index (DXY), manages to gather some traction and rebounds from earlier lows near 109.50 on Thursday. (FXStreet)

GBP/USD eases from a fresh multi-week high amid a modest USD recovery on Thursday. Reduced bets for more aggressive Fed rate hikes could act as a headwind for the buck. The fundamental backdrop supports prospects for the emergence of some dip-buying. (FXStreet)

Silver fails to find acceptance above the 100-day SMA and edges lower on Thursday. Break below the 38.2% Fibo. level should pave the way for a further intraday decline. A sustained move beyond the $19.55-60 confluence will be seen as a trigger for bulls. (FXStreet)

USD/CAD edges higher on Thursday, though the uptick lacks any follow-through buying. The less hawkish BoC decision, softer oil prices undermine the loonie and offer support. The USD languishes near the monthly low and acts as a headwind ahead of the US GDP. (FXStreet)

Prices of natural gas charted modest losses after rebounding from daily lows near $5.30 on Wednesday. The bounce was on the back of rising open interest, leaving the door open to the continuation of this move in the very near term and with the immediate target at the 200-day SMA, today around $6.72 mark per MMBtu. (FXStreet)

USD/CHF has dropped to near 0.9850 as DXY has refreshed day’s low at 109.54. The risk-on impulse has rebounded as S&P500 futures have recovered majority of Wednesday’s losses. US economic calendar is full of critical events and will provide guidance for further action. (FXStreet)

A combination of factors lifts AUD/USD to a fresh three-week high on Thursday. Reviving bets for more aggressive rate hikes by the RBA underpins the aussie. Expectations for a less hawkish Fed weigh on the USD and remain supportive. (FXStreet)

EUR/USD is breathing a sigh of relief on the ECB Thursday. ECB is set to hike rates by 75 bps, Lagarde’s presser holds the key. Euro bulls run into the bearish 100DMA at 1.0090, where next? EUR/USD is trading almost unchanged on the day at around 1.0075 ahead of the European open. Investors take a pause and refrain from placing any directional bets on the pair, awaiting the critical ECB rate hike decision and the US advance Q3 GDP release. (FXStreet)

NZD/USD has climbed above 0.5860 after a consolidation breakout as the risk-on profile recovers. The DXY has remained subdued in the entire Tokyo session ahead of key US economic data. Higher projections for durable goods demand in times of escalating core CPI could delight the Fed. (FXStreet)

USD/INR has displayed a vertical rebound from around 82.00 as oil prices soar. Market mood has turned extremely quiet ahead of US economic data. Fed’s preferred inflation tool, US core PCE could drop to 4.5%. (FXStreet)

WTI Crude oil prices are nearly unchanged in Asia-Pacific trading as equity indexes across the region trade higher against a softer US Dollar. On Wednesday, WTI and Brent crude prices rose over 3% as a pullback in the US Dollar, and inventory data aided the commodity. A drop in Treasury yields reflected easing FOMC rate hike bets as traders mull cooling economic data points. (DailyFX)

The price of gold appears to be reversing course following the failed attempt to test the yearly low ($1615), but the precious metal may largely mirror the price action from earlier this month if it struggles to push above the moving average. As a result, the price of gold may continue to track the negative slope in the moving average with the Federal Reserve on track to implement higher interest rates next month, and the update to the US Personal Consumption Expenditure (PCE) Price Index may encourage Chairman Jerome Powell and Co. to retain their existing approach in combating inflation as the Fed’s preferred gauge for inflation is expected to widen for the second consecutive month. (DailyFX)

Source: FXStreet, DailyFX

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