Market Update - 14 November 2022

The index manages to leave behind part of the recent strong decline. US yields kicks in the week on the defensive across the curve. FOMC’s L.Brainard is due to speak later in the NA session. The dollar appears somewhat bid at the beginning of the week and briefly revisits the 107.00 neighbourhood when gauged by the USD Index (DXY). (FXStreet)

EUR/GBP gains some positive traction for the second straight day, though lacks any follow-through. A modest USD rebound is weighing on the common currency and acting as a headwind for the cross. Traders also seem reluctant ahead of this week’s UK macro data and Chancellor Hunt’s statement. (FXStreet)

USD/JPY struggles to capitalize on its modest recovery gains and remains below the 140.00 mark. Rebounding US bond yields revive the USD demand, though fail to provide any meaningful lift. Bets for smaller Fed rate hikes continue to act as a headwind for the buck and capping the major.(FXStreet)

EUR/USD prints a bullish chart formation near a three-month high. Convergence of three-day-old support, flag’s bottom challenge bears of late. Steady RSI suggests further grinding but buyers stay hopeful.(FXStreet)

USD/CAD has sensed buying interest around 1.3250 as DXY rebounds ahead of US midterm elections outcome. The change of the House of Representatives' stewardship to Republicans will dampen expansionary policies. Loonie investors are eyeing the release of the inflation figures.(FXStreet)

GBP/USD retreats from 11-week high as market sentiment sours. Increasing odds of the Fed’s 50-bps rate hike favor buyers. Biden-Xi updates, light calendar and fears of tough guidance for the UK’s budget challenge previous upside. (FXStreet)

AUD/USD remains on the defensive amid a modest USD bounce from a nearly three-month low. Hawkish remarks by Fed’s Waller push the US bond yields higher and revive the USD demand. Bets for smaller rate hikes by the Fed act as a headwind for the buck and limit losses for the pair. (FXStreet)

NZD/USD is seen consolidating last week’s post-US CPI rally to a two-month high. Rebounding US bond yields helps revive the USD demand and acts as a headwind. The downside remains limited amid rising bets for smaller rate hikes by the Fed. (FXStreet)

USD/INR bounces off 100-DMA to print the biggest daily gain in seven weeks. Biden-Xi headlines, Fed’s Waller triggered risk-off mood amid a light calendar. Moody’s cuts India’s 2022 GDP growth forecasts by citing higher interest rates, inflation and global economic slowdown. (FXStreet)

A six-day losing spell has halted after kissing the upward-sloping trendline around 0.9400. The 50-and 200-EMAs have turned south which indicates that the short-and long-term trend has turned bearish. A bearish range shift by the RSI (14) adds to the downside filters.(FXStreet)

Silver reverses an intraday dip to the $21.30 area, though lacks follow-through buying. Repeated failures to capitalize on the move beyond 200 DMA warrants caution for bulls. A convincing break below the $21.00 mark will shift the bias in favour of bearish traders. (FXStreet)

Friday’s moderate pullback in prices of natural gas was on the back of shrinking open interest and hints at the view that a deeper pullback seems not favoured in the very near term. The uptick in volume also points to some consolidative mood ahead. The 200-day SMA at $6.84 per MMBtu, in the meantime, continues to cap the upside for the time being. (FXStreet)

Friday’s second improvement in a row in prices of the WTI was accompanied by increasing open interest, which suggests that extra gains appear on the cards in the near term. That said, the next resistance turns up at the November high at $93.73 per barrel (November 7. (FXStreet)

​

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.