Market Update - 07 December 2022

The index extends the advance and flirts with 106.00. The absence of traction prevails in the US yield curve. Weekly Mortgage Applications, Consumer Credit Change next on tap. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, climbs further and approaches the 106.00 neighbourhood on Wednesday. (FXStreet)

EUR/GBP holds steady near the weekly high, though lacks follow-through buying. The better-than-expected German data underpins the Euro and extends support. The mixed setup warrants some caution before placing aggressive bullish bets. (FXStreet)

USD/CAD holds steady near a one-month top and draws support from a combination of factors. Bearish oil prices continue to undermine the Loonie and act as a tailwind amid a stronger USD. Bulls, however, seem reluctant and prefer to wait for the BoC decision before placing fresh bets. (FXStreet)

GBP/USD stays pressured around the short-term key support confluence. Convergence of 200-DMA, one-month-old ascending trend line restricts immediate downside. The looming bear cross on MACD keeps sellers hopeful, previous resistance line from June acts as additional downside filter. (FXStreet)

EUR/USD is eyeing a cushion around 1.0460 as the US Dollar is displaying topsy-turvy moves. Fresh strength in the United States economy has triggered Federal Reserve’s interest rate peak chaos. European Central Bank policymakers are expecting the interest rate to peak sooner. EUR/USD is declining towards the upward-sloping trendline plotted from November low around 0.9730. (FXStreet)

GBP/JPY picks up bids to reverse the previous day’s pullback from one-week high. Bullish MACD signals, sustained bounce off 21-SMA favor buyers. 200-SMA, five-week-old descending trend line challenge upside moves. (FXStreet)

AUD/USD touches a fresh weekly low amid some follow-through buying around the USD. Expectations that the Fed may lift interest rates more than projected underpins the buck. Softer Australian GDP print and Chinese trade balance data contribute to the downfall. (FXStreet)

NZD/USD remains sidelined as sellers attack short-term key support line. Bearish MACD signals, RSI divergence keeps sellers hopeful. 21-SMA guards immediate recovery, 0.6470-75 region is the key hurdle to the north. (FXStreet)

USD/INR eases from one-month high on the Reserve Bank of India (RBI) rate hike. RBI announces 0.35% increase to benchmark Repo rate, as expected. Sluggish US Dollar, cautious optimism surrounding China and sticky Oil price also favor Indian Rupee. (FXStreet)

South African GDP overshoots estimates despite political turmoil USD/ZAR Slides to support as Dollar weakness limits gains Fundamental data remains key for the EM (emerging market) currency pair as FOMC looms (DailyFX)

Natural gas prices dropped for the fifth session in a row on Tuesday. The daily decline this time was on the back of rising open interest, which is supportive of extra retracement in the very near term. That said, the October low at $4.75 per MMBtu still emerges as the next target for bears for the time being. (FXStreet)

Crude oil prices remained under pressure and dropped to fresh 2022 lows on Tuesday. The daily downtick was on the back of diminishing open interest, indicative that further decline could take a breather in the very near term. The broader bearish sentiment in WTI, however, leaves the door open to a probable revisit to the $70.00 mark per barrel. (FXStreet)

Gold price oscillates in a range near the weekly low amid some follow-through USD buying. Expectations that the Fed will continue to tighten its policy act as a tailwind for the buck. The easing of COVID-19 curbs in China also contributes to capping the safe-haven XAU/USD. (FXStreet)

Source: FXStreet, DailyFX

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