Market Update - 08 December 2022

USD/JPY oscillates in a narrow trading band amid subdued trading action on Thursday. A combination of factors undermines the JPY and extends some support to the major. Bets for less aggressive Fed rate hikes keep the USD bulls on the defensive and cap gains. (FXStreet)

GBP/USD lacks any firm direction and oscillates in a narrow trading range on Thursday. Subdued USD demand lends some support, though recession fears seem to cap the pair. Traders also seem reluctant ahead of the crucial FOMC/BoE policy meetings next week. (FXStreet)

EUR/USD is oscillating around 1.0500 as investors await a speech from European Central Bank’s Lagarde. Uncertainty over the Federal Reserve policy outlook has muddled investors’ sentiment. The speech from Christine Lagarde will trim obscurity over interest rate policy. EUR/USD is expected to continue its sideways auction profile amid a quiet market mood. (FXStreet)

USD/CAD braces for the biggest weekly gains in ten as it grinds near one-month high. Fears of recession, US-China tussles join chatters surrounding Russia to weigh on sentiment. Rebound in US Treasury yields favors US Dollar bulls despite pre-Fed inaction. Second-tier data/events could offer intermediate moves ahead of important Friday. (FXStreet)

The US Dollar is struggling to cross the immediate hurdle of 105.20 as the risk-on impulse has capped the upside. US Treasury yields dived, and S&P500 remained choppy amid escalating recession fears. A policy change by the FOMC from 2023 will result in a prolonged decline in the US Dollar. The US Dollar Index (DXY) is facing barricades while attempting to cross the immediate hurdle of 105.20 in the Asian session. (FXStreet)

AUD/USD remains confined in a range and is influenced by a combination of diverging forces. The subdued USD demand offers some support, though recession fears seem to cap the Aussie. Traders also prefer to wait on the sidelines ahead of the key FOMC policy meeting next week. (FXStreet)

NZD/USD retreats towards 50-HMA, snaps two-day winning streak. Bearish MACD signals, weekly resistance line keep sellers hopeful Convergence of 200-HMA, ascending trend line from late November challenge further downside. Bulls need validation from 0.6470-75 to refresh yearly top. (FXStreet)

USD/CHF prints mild gains while defending the bounce off weekly support line. 200-HMA probes the run-up targeting 13-day-old resistance line. MACD, RSI suggests extension of recent moves towards the north. (FXStreet)

USD/INR picks up bids to reverse the previous day’s pullback from monthly high. Seven-week-old descending trend line, bearish MACD signals tease sellers. Sustained trading beyond 200-SMA keeps buyers hopeful of witnessing fresh record top. (FXStreet)

WTI prints mild gains at the lowest levels in 2022, snaps four-day downtrend. Russian President Vladimir Putin’s comments, China’s easing of zero-Covid policy favor bulls. Fears of economic recession, price cap on oil exports from Moscow probe oil buyers. US inventory build, rebound in Treasury yields also challenge energy bulls amid mixed clues. (FXStreet)

Gold price picks up bids to pare the first daily loss in three. Risk-positive headlines from China, Hong Kong appear to favor the latest XAU/USD rebound. Gold bears remain hopeful as firmer US Dollar, Treasury bond yields keep recession fears on the table. Headlines surrounding Russia also probe bullion buyers ahead of next week’s key Fed meeting. (FXStreet)

Silver price is juggling around $22.60 amid a quiet market mood. The US Dollar Index (DXY) is struggling to cross the critical hurdle of 105.40. The 200-EM is aiming higher which indicates that the upside trend is intact. (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.