Market Update - 23 October 2023

NZD/USD continues to move on the downward trajectory that began on October 17, trading lower around 0.5820 during the European session on Monday. The pair faces challenge as the US Dollar rebounds, driven by higher US Treasury yields. Additionally, increased risk aversion, stemming from the Israel-Hamas military situation, weighing on the NZD/USD pair. (FXStreet)

USD/MXN aims to recover recent losses, trading around 18.2500 during the Asian session on Monday. The pair gained ground due to increased risk aversion stemming from the Israel-Hamas military situation. (FXStreet)

The USD/CHF pair hovers around 0.8935 during the early European session on Monday. The renewed US Dollar (USD) demand lends some support to the pair. However, geopolitical tensions continue to hang over the market and might cap the Greenback’s upside. (FXStreet)

The EUR/USD pair snaps a two-day winning streak during the early European session on Monday. Market players await the European Central Bank (ECB) Interest Rate Decision on Thursday, with no rate change expected. The markets anticipate ECB’s rate hiking cycle is over, but it won't be until at least July 2024 before it begins easing as the battle against elevated inflation rattles on. At the press time, the major pair is losing 0.15% on the day to trade at 1.0577. (FXStreet)

The USD/CAD pair trades sideways around 1.3715 during the early Asian session on Monday. Investors await the Bank of Canada (BoC) Interest Rate Decision on Wednesday, which is expected to hold the rate at 5.0%. Meanwhile, A rise in US Treasury bond yields and the escalating geopolitical tensions in the Middle East might boost the US Dollar (USD) and weigh on the pair. (FXStreet)

USD/JPY trades higher near 149.90 during the Asian session on Monday. The pair receives upward support following the comments from Bank of Japan (BoJ) Governor Kazuo Ueda on Friday. (FXStreet)

GBP/USD struggles to continue the winning streak. trading around 1.2160 during the Asian session on Monday. However, the currency pair encountered a hurdle following the release of downbeat United Kingdom (UK) Retail Sales data for September on Friday. The Pound Sterling (GBP) managed to recover its losses against the weaker US Dollar (USD). (FXStreet)

WTI prices retreated from the area of weekly peaks on Friday, closing the session with humble losses. The downtick was on the back of increasing open interest, which hints at the potential continuation of the decline in the very near term. That said, further selling pressure should meet the next support around the monthly lows near $81.50 (October 6). (FXStreet)

Gold price halts the winning streak that began on October 17, trading lower around $1,970 per troy ounce during the Asian session on Monday. While geopolitical tensions between Israel and Hamas typically contribute to a higher demand for gold as a traditional safe-haven asset, the current risk-on sentiment is posing a challenge to the price of gold. (FXStreet)

Source: FXStreet

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