Market Update - 08 November 2022

The index attempts a bullish move after bottoming out near 110.00. The recovery in the dollar comes in tandem with higher yields so far. Investors’ attention is expected to remain on the US midterm elections. The greenback, in terms of the USD Index (DXY), looks to leave behind part of the recent steep decline and rebounds from the 110.00 neighbourhood. (FXStreet)

In a nutshell, there is not much evidence yet to conclude that the worst is over for GBP/USD. That’s because in recent weeks GBP/USD has remained confined within the September open-close range. While this can be interpreted as ‘wait-and-watch’, it could also imply a lack of conviction amongst market participants with regard to the future trend. (DailyFX)

USD/CAD has refreshed its day’s high at 1.3523 as the positive risk profile is losing its traction. Investors are cautious as the odds support a majority win of Republicans, which may trigger political instability. Oil prices have slipped as oil demand optimism is returning on expectations of a slowdown in Fed’s rate hike pcae. (FXStreet)

USD/JPY climbs above 146.80 as the traction is returning in the risk-off profile. US yields are advancing after hawkish commentary from Fed policymaker Barkin. Japanese administration is set to approve more stimulus and hike taxes for ultra-wealthy individuals. (FXStreet)

EUR/USD takes offers to renew intraday low, pares recent gains near one-week high. Overbought RSI, bearish MACD triggered the latest pullback. Immediate support line, golden cross keeps buyers hopeful. (FXStreet)

AUD/USD renews intraday low as market sentiment sours during a sluggish session. China reports highest fresh covid numbers since April, fresh statistics from Australia arrived mixed. Light calendar could restrict the pair’s moves ahead of US/China inflation, RBA’s Lowe could entertain intraday traders. (FXStreet)

NZD/USD pares recent gains as bulls step back from 1.5-month high, snaps two-day uptrend. RBNZ Inflation Expectations improved to 3.62% for two-year, 5.08% for one year. Sour sentiment, China’s covid woes exert downside pressure on prices. Lackluster moves expected ahead of US CPI, risk-aversion may help please bears. (FXStreet)

USD/IDR remains mildly bid, extends week-start rebound amid sluggish session. Indonesia Consumer Confidence rise to 120.30 in October. US dollar licks its wound amid firmer yields, covid fears from China. Light calendar restricts immediate moves, US inflation in focus. (FXStreet)

GBP/JPY fades two-day uptrend, remains sidelined of late. BOE witnessed a dim response of the first gilt sale, optimism surrounding UK’s fiscal policy fades. UK businesses fear gloomy Christmas amid inflation woes. Yields remain firmer as recession looms, China’s covid numbers escalate during a sluggish session. (FXStreet)

USD/INR licks its wound at the lowest levels in a month, snaps three-day downtrend. Firmer yields, covid woes from China test bears even as Fed concerns weigh on prices. Softer oil price adds strength to the bearish bias amid an off in Indian markets. (FXStreet)

EUR/GBP has sensed selling pressure while attempting a break above 0.8700. The ECB is expected to paddle up its policy tightening measures to bring the inflation rate to 2%. Eurozone Retail Sales data is seen at -1.3% vs. the prior release of -2.0%. (FXStreet)

USD/CHF picks up bids to refresh intraday high, snaps two-day downtrend. Risk aversion, sluggish markets underpin USDCHF rebound ahead of the key data/events. US CPI, mid-term election outcomes and comments from SNB’s Jordan are the key catalysts to watch for clear directions. (FXStreet)

Gold corrected lower on Monday following the strong uptick recorded at the end of last week. The daily decline was on the back of rising open interest, which opens the door to the continuation of the corrective move in the very near term. In the meantime, recent tops around $1,680 per ounce troy are expected to cap occasional bullish attempts. (FXStreet)

Prices of the barrel of the WTI started the week on the back foot amidst shrinking open interest and volume, which suggests the possibility that further decline is not favoured in the very near term. Further bullish attempts, in the meantime, are expected to target the 200-day SMA, today at $98.44 per barrel. (FXStreet)

Prices of natural gas gapped higher and revisited the area beyond the $7.00 mark at the beginning of the week, just to fade most of that advance and end the session with marginal gains afterwards. The move was amidst rising open interest and volume and points to some consolidation in the very near term with the topside still around the $7.20 region per MMBtu. (FXStreet)

BTC/USD has maintained a gradual drift higher in recent weeks, nicely guided by an upward-sloping channel from September. The top end of the channel is an uptrend line (now at 21250) while the lower edge of the channel is another uptrend line (now at 18950). The top end also coincides with the 89-day moving average – the rebounds in August and September were capped by the moving average. (DailyFX)

ETH/USD’s three-week-long rally is testing quite strong resistance on the 200-day moving average, not too far from another ceiling at the September high of 1790. Also, as noted in the previous update, ETH/USD has achieved the price objective of the horizontal channel that got triggered at the end of October. (DailyFX)

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.