Market Update - 02 December 2022

The index drops to 6-month lows near 104.50 on Thursday. Further losses remain likely after a breakdown of the 200-day SMA. US Nonfarm Payrolls are expected at 200K in November. The USD Index (DXY), which tracks the greenback vs. a bundle of its main competitors, remains well on the defensive and revisits multi-month lows around 104.50 at the end of the week. (FXStreet)

USD/JPY drops to a fresh multi-month low on Friday amid sustained USD selling bias. The Fed’s dovish pivot and sliding US bond yields continue to weigh on the greenback. Technical selling below the 135.00 mark also contributes to the downward trajectory. Oversold conditions on short-term charts could help limit losses ahead of the US NFP. (FXStreet)

EUR/GBP gains some positive traction on Friday, though lacks follow-through buying. Bets for another supersized 75 bps ECB rate hike underpin the Euro and offers support. The GBP consolidates its recent gains and does little to provide any meaningful impetus. (FXStreet)

USD/CAD remains indecisive after two-day downtrend, defends weekly gains. Federal Reserve policymakers’ dovish bias, softer United States data weigh US Dollar. Chatters surrounding China, Oil price cap on Russian exports test WTI bulls. Downbeat expectations from Canada, United States employment report tease Canadian Dollar buyers. (FXStreet)

GBP/USD remains sidelined after rising to the highest level in five months. Overbought RSI, two-month-old resistance line challenge further upside. Bear need validation from the convergence of 200-DMA, previous resistance line from late June. (FXStreet)

EUR/USD portrays typical pre-NFP trading lull at five-month high. ECB President Christine Lagarde cites economic uncertainty, need for fiscal policy to defend the bloc. Downbeat comments from IMF’s Georgieva, anxiety ahead of US NFP also probe bulls.Hopes of Fed’s slower rate hike, downbeat expectations from US data favor buyers. (FXStreet)

AUD/USD gains some positive traction for the fourth straight day amid sustained USD selling. The Fed’s dovish pivot continues to drag the US bond yields lower and weigh on the greenback. A softer risk tone seems to act as a headwind for the risk-sensitive Aussie ahead of the NFP report. (FXStreet)

USD/INR bears take a breather around two-week low. Sustained trading below 50-DMA, bearish oscillators favor sellers. Four-month-old support line, 100-DMA to challenge bears, descending trend line from late October adds to the upside filters. (FXStreet)

NZD/USD gains traction for the fourth successive day amid the prevalent USD selling bias. The Fed’s dovish pivot keeps the US bond yields depressed and weighs on the greenback. The cautious market mood could cap the risk-sensitive Kiwi ahead of the US NFP report. (FXStreet)

USD/CHF snaps two-day downtrend as buyers prepare for US jobs report. Cautious mood, rebound in yields allow bears to take a breather amid sluggish session. US NFP could recall pair bears on downbeat forecasts, dovish Fed outlook. (FXStreet)

Prices for the natural gas extended the leg lower on Thursday on the back of increasing open interest, which leaves the door open to the continuation of the ongoing retracement in the very near term. Against that, the commodity should meet contention around the November lows in the $5.50/60 region per MMBtu. (FXStreet)

WTI prices rose for the third straight session on Thursday amidst shrinking open interest. Against that, the recent rebound in crude oil prices could lose strength and spark a corrective drop in the very near term. So far, the $84.00 mark per barrel appears as the immediate hurdle for bulls. (FXStreet)

Thursday’s strong bounce in gold prices finally surpassed the key $1,800 mark per ounce troy. The move, in addition, was on the back of rising open interest and volume, which is indicative that further gains remain in store in the very near term. That said, the next target of note comes at the August high at $1,807 (August 10). (FXStreet)

Silver price remains on pressured around intraday low after reversing from multi-day high. Overbought RSI triggered pullback but bears need validation from three-week-old horizontal support. XAG/USD bulls will wait for clear break of two-month-old resistance line for re-entry. (FXStreet)

Source: FXStreet, DailyFX

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