Market Update - 03 November 2022

The index extends the post-Fed rally near the 113.00 region. US 2-year note yields climb past the 5.0% mark, or 16-year highs. Initial Claims, ISM Non-Manufacturing, Factory Orders next on tap. The greenback, in terms of the USD Index (DXY), climbs further north of the 112.00 mark and print new multi -session tops on Thursday. (FXStreet)

GBP/USD dives to over a one-week low on Thursday amid strong follow-through USD buying. The Fed’s hawkish outlook pushes the US bond yields higher and continues to boost the buck. Technical selling below key support levels aggravates the bearish pressure ahead of the BoE. (FXStreet)

USD/CAD scales higher for the sixth straight day and climbs to a one-and-half-week high. The Fed’s hawkish outlook boosts the USD and remains supportive of the positive move. Retreating oil prices undermines the loonie and also contributes to the intraday strength. (FXStreet)

Wednesday’s strong gains in prices of the natural gas were in tandem with diminishing open interest and volume, indicating that the continuation of the rebound looks not favoured in the very near term. Against that, the 200-day SMA, today around $6.75 per MMBtu, continues to limit occasional bullish attempts. (FXStreet)

NZD/USD turns lower for the second straight day amid the emergence of fresh USD buying. The Fed’s hawkish outlook pushes the US bond yields higher and underpins the greenback. A softer risk tone further benefits the safe-haven buck and weighs on the risk-sensitive kiwi. (FXStreet)

USD/JPY edges lower for the third successive day, though the downside remains cushioned. The Fed’s hawkish outlook pushes the US bond yields higher and underpins the greenback. Geopolitical risks and intervention fears might hold back bulls from placing aggressive bets. (FXStreet)

GBP/USD holds lower ground inside a one-week-old bearish channel. MACD tease bulls but 1.1510 is the key hurdle. Key Fibonacci retracements could act as an extra filter to the south. (FXStreet)

Copper price struggles to cheer pullback in DXY amid fears of higher rates, less demand. China reports strong coronavirus numbers, Fed’s Powell turns down hopes of slower rate hikes. The world refined copper market reported 16,000 tonnes of deficit in August. (FXStreet)

USD/CAD retreats from seven-day high, prints the first daily loss in six. Convergence of previous resistance, 200-SMA challenges sellers amid upbeat RSI conditions. Multiple hurdles to test bulls before the yearly top. (FXStreet)

An H&S formation has accelerated the odds of a bearish reversal. Overall negative market sentiment has underpinned the greenback. Declining 20-EMA adds to the downside filters. The AUD/USD pair has witnessed fresh demand after a nose-diving to near 0.6326 in the Tokyo session. As the risk-on profile has attempted a rebound after an intense sell-off in the risk-perceived currencies, the antipodean has displayed a pullback move to near 0.6363. (FXStreet)

USD/INR has slipped to 82.75 after a breakdown of intraday consolidation. The RBI will provide a special report on inflation equipped with reasons and remedies for higher inflation. Fed’s hawkish guidance has turned the overall risk tone extremely negative. (FXStreet)

Silver remains mildly bid inside three-week-old rising wedge bearish chart pattern. Steady RSI suggests continued grinding between 50-DMA and 100-DMA. Two-month-old ascending trend line adds to the downside filters. Silver price (XAG/USD) remains firmer around $19.30 while paring the post-Fed losses during early Thursday in Europe. In doing so, the bright metal rebounds from the 50-DMA to stay inside a three-week-old rising wedge bearish chart pattern. (FXStreet)

EUR/USD struggles to defend the bounce off an eight-day low. Sluggish yields allow DXY bulls to take a breather, hawkish ECBspeak also defends pair buyers. Recession woes, Fed’s signals for aggressive rate hikes keep bears hopeful even as ECB’s Lagarde may push back bears. US ISM Services PMI could offer extra signals for Friday’s NFP and direct near-term USD moves. (FXStreet)

Gold prices move slightly higher in APAC trading as the US jobs report nears Speculators trimmed their bullish gold bets ahead of the FOMC decision XAU/USD sees a possible trend reversal chance on Double Bottom pattern. (DailyFX)

The price of oil climbs to a fresh weekly high ($90.36) following an unexpected decline in US inventories, and crude may attempt to retrace the decline from the October high ($93.48) as it seems to be no longer responding to the negative slope in the 50-Day SMA ($86.44). (DailyFX)

Source: FXStreet, DailyFX

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