Market Update - 02 October 2023

EUR/USD is seen consolidating in a narrow range through the Asian session on Monday. The formation of a downward-sloping channel on the daily chart favours bearish traders. A sustained strength beyond the 1.0700 mark is needed to negate the negative outlook. (FXStreet)

USD/JPY edges higher to 149.70, near the 11-month highs on Monday. BoJ Governor said there was "a distance to go" before exiting its ultra-easy policy. The potential FX intervention from the Japanese authorities might warn traders from the bullish bet. Market players await the US ISM PMI while keeping an eye on the 150.00 level. (FXStreet)

GBP/USD remains under selling pressure near 1.2180 amid the rally of USD. The US annual Core PCE Price Index grew 3.9% vs. 4.3% prior, in line with expectations. Market players will focus on the US ISM Manufacturing PMI for September, followed by the Fed Chair Powell’s speech. (FXStreet)

USD/CAD retraces to 1.3570, and holds above the 50- and 100-hour EMAs on the four-hour chart. The key resistance level is seen at 1.3600; the initial support level is located at 1.3515. Relative Strength Index (RSI) is located in the bullish territory above 50. (FXStreet)

The index advances modestly early on Monday. The dollar regains traction on risk-off sentiment. ISM Manufacturing takes centre stage later in the NA session. The greenback, in terms of the USD Index (DXY), adds to Friday’s small gains and revisits the 106.30 region at the beginning of the week. (FXStreet)

USD/CHF weakens ahead of Switzerland’s Consumer Price Index on Tuesday. Market expects Swiss CPI to grow at 1.8% against the previous figures of 1.6%. Fed’s hawkish stance on interest rates trajectory strengthens the US Dollar (USD). Higher US Treasury yields contribute support to underpin the Greenback. (FXStreet)

NZD/USD struggles to gain traction and is influenced by a combination of diverging factors. The risk-on impulse caps gains for the safe-haven USD and benefits the risk-sensitive Kiwi. Bets for one more rate hike by the Fed in 2023 act as a tailwind for the buck and keep a lid. (FXStreet)

USD/INR gains momentum above 83.00 as the US Dollar (USD) resumes its upward path. Reserve Bank of India (RBI) is likely to maintain a status quo in the upcoming interest rate meeting. The annual Core PCE Price Index grew 3.9% from 4.3% in July, in line with expectations. RBI rate decision will be a closely watched event on Friday. (FXStreet)

Crude oil prices receive downward pressure due to the Fed’s hawkish stance on interest rates trajectory. US Crude oil production has surged to multi-year highs. Higher US Treasury yields contribute support to underpin the US Dollar. US passed bills to avert a government shutdown, securing funding until November 17. (FXStreet)

Natural gas prices rose to fresh monthly tops near the $3.00 mark before ending Friday’s session with modest losses. The move was amidst rising open interest and opens the door to further correction in the very near term. That said, the $3.00 region per MMBtu remains a tough barrier for natural gas bulls for the time being. (FXStreet)

Gold price continues losing ground for the sixth straight day and drops to a near seven-month low. Bets for further policy tightening by the Fed turn out to be a key factor weighing on the “XAU/USD”. The risk-on impulse further contributes to driving flows away from the safe-haven precious metal. (FXStreet)

Silver price persists as market caution prevails regarding the Fed's interest rate trajectory. Momentum indicators signal a potential bearish sentiment in the price movements. The psychological level at $21.50 emerges as the immediate support. (FXStreet)

Bitcoin’s rise to a minor resistance at the mid-September high of 27500 raises the odds that the two-month-long decline could be over. This follows a hold above strong support at the June low of 24750, which has kept intact the higher-top-higher-bottom formation since the end of 2022. Importantly, this keeps alive the possibility of a further recovery given the sharp 2021-2022 decline. (DailyFX)

Source: FXStreet

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