Market Update - 10 November 2022

GBP/USD regains some positive traction on Thursday amid modest USD weakness. The upside potential seems limited as traders keenly await the key US CPI report. The BoE’s gloomy economic outlook also contributes to capping gains for the pair. (FXStreet)

The index alternates gains with losses around 110.50. Markets’ attention will be on the release of US inflation figures. Weekly Jobless Claims, Fedspeak also on tap later in the day. The greenback, when tracked by the USD Index (DXY), trades without a clear direction near Wednesday’s close around 110.50 on Thursday. (FXStreet)

USD/CAD struggles to capitalize on its modest intraday uptick amid modest USD weakness. Bearish crude oil prices undermine the Loonie and help limit the downside for the major. Traders now look forward to the crucial US CPI report before placing fresh directional bets. (FXStreet)

EUR/GBP lacks any firm intraday direction and oscillates in a range on Thursday. A combination of factors, however, continues to act as a tailwind for the cross. Talks for aggressive tightening by the ECB underpin the Euro and offers support. The BoE’s bleak outlook for the UK economy supports prospects for further gains. (FXStreet)

USD/JPY comes under some selling pressure on Thursday amid a modest USD weakness. The Fed-BoJ policy divergence should act as a tailwind and help limit losses for the pair. Traders also seem reluctant and prefer to wait for the release of the crucial US CPI report. (FXStreet)

GBP/JPY grinds higher around intraday top, snaps two-day downtrend. Symmetrical triangle, 200-HMA challenge immediate recovery despite firmer oscillators. Sellers need validation from 165.00 to aim for previous monthly low. (FXStreet)

EUR/USD picks up bids to refresh intraday high, reversing Wednesday’s losses. Two-month-old horizontal resistance area challenge bulls. Previous support line from Monday, bearish MACD signals restrict immediate upside. Sellers need validation from six-week-old support line to refresh yearly low. (FXStreet)

NZD/USD fails to cheer the US dollar weakness during early Thursday as it stays pressured around the intraday low of 0.5865 heading into the European session. In doing so, the Kiwi pair takes clues from the options market, as well as downbeat signals from the Reserve Bank of New Zealand (RBNZ). (FXStreet)

EUR/JPY has resurfaced after dropping to near 146.50 as bets escalate for hawkish ECB policy. It is premature to determine Eurozone’s interest rate peak as the current inflation rate is far from target. An end to BOJ’s easy policy seems not in vision as the administration has announced more stimulus packages. (FXStreet)

Australia’s inflation expectations for November will cross the wires today. AUD/USD fell as iron ore prices slipped. The Reserve Bank of Australia Deputy Governor Michele Bullock pushed back against claims that the central bank wasn’t being tough enough on inflation, but it didn’t do much to spur rate hike bets. The Australian Dollar’s direction will likely remain tied to China’s Covid situation over the short term. The upcoming US consumer price index (CPI) is in focus. (DailyFX)

USD/CHF remains pressured at one-month low, down for the fifth consecutive day. US Dollar drops amid mixed Fedspeak, softer yields. Markets remain dicey as S&P 500 Future print mild gains, Asian stocks track Wall Street’s losses. Traders brace for a softer US CPI, a surprise can recall buyers. (FXStreet)

Prices of natural gas added to Tuesday’s losses and broke below the $6.00 mark on Wednesday. The strong drop was accompanied by increasing open interest and put the likelihood of further losses back on the radar in the near term. Against that, the commodity could extend the decline further and revisit the October low at $4.75 per MMBtu in the short term. (FXStreet)

Crude oil prices are little changed in Asia-Pacific trading after falling more than 3% throughout European and US trading hours. The commodity’s demand outlook is suffering from an increase in Covid cases across China, which has forced Chinese officials to ramp up containment measures. Those virus curbs reduce economic output, thus leading to lower oil consumption. (DailyFX)

Gold price reverses the previous day’s pullback from monthly high amid softer DXY. Markets remain dicey ahead of US CPI for October, central bankers’ comments underpin recent cautious optimism. Downbeat yields weigh on greenback amid hopes of softer US inflation, slower Fed rate hike in December. Gold price (XAU/USD) extends the early-day recovery to $1,711 as European traders roll up their sleeves for the key US inflation data on Thursday. With this, the XAUUSD reverse the previous day’s U-turn from the highest levels in nearly two months. However, a technical hurdle surrounding $1,720 appears crucial for the bullion's further upside. (FXStreet)

Source: FXStreet, DailyFX

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