Market Update - 01 December 2022

EUR/GBP drifts lower for the second straight session and challenges the 0.8575-0.8570 support. Wednesday’s softer Eurozone inflation figures weigh on the Euro and exert downward pressure. The overnight dovish remarks by BoE’s Chief Economist Huw Pill should limit losses for the cross. (FXStreet)

GBP/USD climbs to a fresh weekly high on Thursday amid sustained USD selling bias. Dovish remarks by Fed Chair Powell, weaker US bond yields weigh on the greenback. The technical set-up favours bullish traders and supports prospects for further gains. (FXStreet)

USD/JPY rebounds from its lowest level since August 23 amid a modest USD uptick. The Fed’s dovish pivot keeps the US bond yields depressed and should cap the buck. Hawkish signals by BoJ member underpins the JPY and acts as a headwind for the pair. (FXStreet)

USD/CAD struggles to gain any meaningful traction amid the prevalent USD selling bias. A modest downtick in oil prices undermines the Loonie and helps limit the downside. Traders now look to the US PCE inflation data and ISM PMI short-term opportunities. (FXStreet)

EUR/USD advances to 3-day highs above 1.0450. The dollar melts amidst solid risk-on sentiment. Final PMIs, US ISM Manufacturing next of note in the docket. The European currency remains well bid and lifts EUR/USD well north of the 1.0400 hurdle on Thursday. (FXStreet)

GBP/JPY pokes a short-term key support line amid downbeat oscillators. Clear break of two-month-old support line becomes necessary for the bears to keep reins. Monthly resistance line restricts corrective rebound below 169.00 hurdle. (FXStreet)

AUD/USD scales higher for the third straight day and climbs to a fresh multi-month high. Dovish remarks by Fed Chair Powell keep the USD depressed and offers some support. China’s COVID-19 woes turn out to be the only factor capping the upside for the major. (FXStreet)

Gold price rallies back closer to a three-month high amid sustained US Dollar selling. Federal Reserve Chair Powell’s dovish comments continue to weigh on Greenback. Sliding US Treasury bond yields further contribute to driving flows toward XAU/USD. Traders now await the Fed’s preferred inflation gauge for some meaningful impetus. (FXStreet)

Prices of natural gas retreated markedly on Wednesday and closed around the 200-day SMA, today near $6.98 per MMBtu. The downtick was in tandem with increasing open interest, which leaves the door open to a deeper pullback in the very near term. A sustained break below the 200-day SMA should be supportive of extra losses for the time being. (FXStreet)

WTI crude oil retreats from one-week high to snap three-day uptrend. Sustained trading beyond monthly resistance line, now support, joins 10-DMA breakout to favor bulls.21-DMA 50% Fibonacci retracement level adds to the upside filters. WTI crude oil prints the first intraday loss of the week as bulls step back to $80.00 after renewing the weekly top during early Thursday. (FXStreet)

Silver hits a fresh multi-month peak on Thursday, albeit lacks follow-through buying. The technical set-up favours bullish traders and supports prospects for further gains.Dips to the $21.70-60 resistance breakpoint could be seen as a buying opportunity. (FXStreet)

Source: FXStreet, DailyFX

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