Market Update - 04 October 2023

EUR/USD snaps the recent losses due to the correction in the US Dollar. Greenback pulls back from the 11-month high marked on Tuesday. Better-than-expected Eurozone PMI could provide support in underpinning the Euro. (FXStreet)

USD/JPY builds on the overnight solid recovery from a three-week low, albeit lacks follow-through. The underlying strong USD bullish sentiment turns out to be a key factor lending support to the pair. Intervention fears, along with the risk-off mood, seem to underpin the safe-haven JPY and cap gains. (FXStreet)

GBP/USD is seen consolidating in a narrow band near a multi-month low touched on Tuesday. The extremely oversold RSI on the daily chart holds back bearish traders from placing fresh bets. The divergent Fed-BoE policy outlook supports prospects for an extension of the declining trend. (FXStreet)

USD/CAD strengthens due to the Fed’s hawkish tone on interest rates trajectory. Stronger US jobs data bolster the US yields; contributing support for the US Dollar. Downbeat Crude oil prices put pressure on the Canadian Dollar. (FXStreet)

The index gyrates without direction above the 107.00 mark. Markets seem to have entered the usual pre-NFP lull. The ADP report, ISM Services PMI will be in the limelight. The greenback, in terms of the USD Index (DXY), alternates gains with losses above the 107.00 mark so far on Wednesday. (FXStreet)

USD/CHF traces an upward trend due to the Fed’s hawkish stance on interest rate trajectory. US Dollar strengthens on higher US Treasury yields, coupled with Solid US jobs data. SNB is expected to maintain steady interest rates at the upcoming meeting. (FXStreet)

EUR/JPY recovers from a two-day losing streak despite BoJ’s verbal interventions. The risk-off sentiment could limit the potential of the cross-pair. Differences of opinion among ECB officials reflect the complex situation surrounding the Eurozone economy. (FXStreet)

NZD/USD slides to a near four-week low in reaction to the RBNZ’s decision to maintain the status quo. The Fed’s hawkish view, along with elevated US bond yields, underpin the USD and exert pressure. The risk-off environment might further contribute to driving flows away from the risk-sensitive Kiwi. (FXStreet)

USD/INR receives upward support on market caution regarding the Fed’s interest rates trajectory. RBI is expected to keep its current interest rates unchanged at 6.50% in October’s meeting. Stronger jobs data bolster the US yields; contributing support for the Greenback. (FXStreet)

WTI price recovers some of its intraday losses due to a correction in the US Dollar. Greenback pulls back from the 11-month high marked on Tuesday. Saudi Arabia announced to continue the existing policy of output cuts through the end of the year 2023. (FXStreet)

Gold price consolidates its recent heavy losses a near seven-month trough touched on Tuesday. Hawkish Fed expectations, elevated US bond yields and a bullish USD should act as a headwind. Investors look to the US ADP report and ISM Services PMI for short-term trading opportunities. (FXStreet)

Silver comes under some renewed selling pressure on Wednesday, albeit lacks follow-through. The oversold RSI on the daily chart holds back bears from placing fresh bets around the XAG/USD. The technical setup supports prospects for an extension of the recent sharp depreciating move. (FXStreet)

Source: FXStreet

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.