Market Update - 14 December 2022

EUR/USD lacks any firm intraday direction and remains confined in a range on Wednesday. The underlying bearish sentiment surrounding the USD seems to act as a tailwind for the pair. Investors look to the FOMC decision for some impetus ahead of the ECB meeting on Thursday. (FXStreet)

GBP/JPY remains under some selling pressure for the second successive day on Wednesday. Softer UK consumer inflation figures undermine the British Pound and act as a headwind. A positive risk tone dents the JPY’s relative safe-haven status and lends support to the cross. (FXStreet)

GBP/USD seesaws around six-month high after UK inflation data. UK CPI retreats from 41-year high to 10.7% YoY in November, firmer RPI defends bulls. The cautious mood ahead of FOMC Meeting restricts GBP/USD reaction to data. Fed is up for 50 bps rate hike, which could favor bulls more after recently firmer UK inflation data. (FXStreet)

USD/CAD grinds higher after bouncing off weekly low. Bullish MACD signals, sustained trading beyond convergence of 21-day EMA, one-month-old support line favor buyers. Seven-week-old descending trend line restricts recovery moves ahead of monthly high. (FXStreet)

US Dollar Index bounces off six-month low, stays inside falling wedge bullish chart pattern. Oversold RSI, multiple hurdles to the south also keep buyers hopeful. 61.8% Fibonacci retracement level guards immediate upside, 200-DMA acts as an extra filter to the north. US Dollar Index (DXY) battles with the bears at the lowest levels since June, defending 104.00 during early Wednesday in Europe. (FXStreet)

USD/JPY prints mild losses as markets turn dicey ahead of the key events. 200-DMA, four-month-old support line defend buyers amid bullish MACD signals. Sellers remain hopeful unless witnessing a clear break of 138.00 hurdle. (FXStreet)

EUR/JPY licks its wounds after positing the biggest daily loss in two weeks. Japan’s Tankan data shows Q4 manufacturers' mood worsens, inflation expectations jump to record high. Treasury bond yields remain pressured after snapping three-day uptrend. Risk-negative catalysts, anxiety ahead of market-moving events also challenge EUR/JPY pair buyers. (FXStreet)

AUD/USD reverses modest intraday losses, though lacks follow-through buying. The risk-on mood lends support to the Aussie; a modest USD uptick caps gains. Traders now look to the key FOMC policy decision for a fresh directional impetus. (FXStreet)

USD/CHF is oscillating below 0.9300 as investors await Federal Reserve’s policy release for fresh cues. Investors seek policy guidance for CY2023 from the Federal Reserve as an interest rate hike by 50 bps is highly expected. An interest rate hike by 50 bps is expected from the Swiss National Bank to keep inflation near 2%. USD/CHF is expected to resume its downside journey as technical indicators narrate more weakness ahead. (FXStreet)

NZD/USD is looking for a cushion around 0.6430 as investors see a less-hawkish Fed monetary policy. The decline in US inflation is backed by a significant drop in gasoline prices, used cars, and airline fares. Going forward, a mixed response is expected from New Zealand GDP data. (FXStreet)

USD/INR has jumped to near 82.70 as firmer oil prices have offset the impact of the subdued US Dollar. S&P500 futures have extended their gains which indicates that the traction is in favor of risk-sensitive assets. Apart from the decline in the interest rate pace, investors will also focus on Fed policy guidance for CY2023. (FXStreet)

Silver oscillates in a narrow trading band through the first half of the European session. The formation of an ascending channel points to a well-established short-term up trend. A convincing break below the 100-hour SMA is needed to negate the constructive setup. (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.