Market Update - 21 November 2022

EURUSD is looking for an establishment below 1.0300 as risk-off sentiment has escalated. The DXY has crossed a two-day high of around 107.24 as investors have hidden behind safe-haven assets. As per the consensus, the Eurozone Consumer Confidence will improve to -26. (FXStreet)

EURGBP surrenders its modest intraday gains and hangs near a two-week low. Friday’s breakdown below a two-week-old trading range favours bearish traders. Sustained strength beyond the 0.8800 mark is needed to negate the negative bias. (FXStreet)

NZDUSD meets with a fresh supply on Monday amid some follow-through USD buying interest. COVID-19 hitters, geopolitical risks benefit the greenback and weigh on the risk-sensitive Kiwi. The downside seems limited ahead of the RBNZ decision and the FOMC minutes on Wednesday. (FXStreet)

GBPUSD comes under fresh selling pressure on Monday amid some follow-through USD buying. China’s COVID-19 woes and geopolitical risks turn out to be key factors benefiting the greenback. A bleak outlook for the UK economy undermines the Sterling and contributes to the offered tone. (FXStreet)

USDJPY scales higher for the fourth straight day and climbs to a one-week high on Monday. Some follow-through USD buying remains supportive amid the Fed-BoJ policy divergence. A sustained move beyond the 141.00 mark is needed to support prospects for further gains. (FXStreet)

USDCAD climbs to a one-and-half-week high and is supported by a combination of factors. Bearish oil prices undermine the Loonie and act as a tailwind amid sustained USD buying. The fundamental and technical set-up supports prospects for a further appreciating move. (FXStreet)

An H&S formation has bolstered signs of a bearish reversal head ON AUDUSD. A test of 200-EMA indicates that the asset is at a make or a break level. The RSI (14) has shifted into the bearish range of 20.00-40.00, which signals more weakness ahead. (FXStreet)

USDCHF is struggling to overstep a 10-day high at 0.9570 as focus shifts to US Durable Goods Orders data. The US Treasury yields are facing pressure amid less-hawkish commentary from Fed’s Bostic. Sustainability in the US Durable Goods Orders data may compel the Fed to sound hawkish again. (FXStreet)

XAUUSD ended up closing the week little changed above $1,750. The minutes of the Federal Reserve’s October policy meeting and PMI surveys could impact the US Dollar’s (USD) valuation and influence Gold’s action, FXStreet’s Eren Sengezer reports. (FXStreet)

Silver remains under some selling pressure on Monday and drops to a nearly two-week low. The mixed technical setup warrants some caution before placing aggressive bearish bets. A sustained strength beyond the $22.00 mark is needed to negate near-term negative bias. (FXStreet)

The index (DXY) adds to the rebound past the 107.00 mark. US yields extend the march north amidst recent hawkish Fedspeak. The Chicago Fed Index will be the sole release later in the NA docket. (FXStreet)

Bitcoin came under renewed selling pressure on Sunday and lost more than 2%. BTCUSD continues to edge lower toward $16,000 in the early European morning. Ethereum broke below $1,200 on Sunday and fell over 6%. ETHUSD was last seen losing more than 1% on the day at around $1,100. (FXStreet)

China’s weaker economic prospects led by rising Covid-19 infections are weighing on oil prices. An unchanged PBOC’s monetary policy has also dampened expectations of a recovery in oil. Expectations for the less-hawkish Fed’s policy are failing to support black gold. (FXStreet)

Source: FXStreet, DailyFX

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