Market Update - 26 October 2023

The EUR/USD pair loses traction near 1.0545 during the early European session on Thursday. The major pair faces some sell-off on the firmer US Dollar (USD) and the downbeat Eurozone economic data. Furthermore, recent tensions in the Middle East have also prompted worries about the region's dwindling growth prospects. Market players await the European Central Bank (ECB) interest rate decision on Thursday, which is expected to hold the rate unchanged at its October meeting. (FXStreet)

The USD/JPY pair fall sharply from 150.70 to 149.90  during the early European session on Thursday. The Japanese Yen soars against the US Dollar (USD) amid the suspect FX intervention by the Japanese authorities. At the press time, the USD/JPY pair is gaining 0.15% on the day to trade at 150.43. (FXStreet)

The GBP/USD pair extends this week's retracement slide from the vicinity of the 1.2300 mark and remains under some selling pressure for the third successive day on Thursday. The pair weakens further below the 1.2100 round figure, hitting over a three-week low during the Asian session, and is pressured by sustained US Dollar (USD) buying interest. (FXStreet)

USD/CHF moves upward for the third successive day, marking weekly highs around 0.8990 during the Asian session on Thursday. The US Dollar (USD) continues to gain value on the back of surging US Bond yields, which provides support to underpinning the USD/CHF pair. (FXStreet)

The Australian dollar has received some fundamental backing of recent through a low unemployment rate and some hawkish messaging from the Reserve Bank of Australia (RBA) minutes and officials alike. The fight against inflation seems to be at the forefront of the central bank and many believe that the softening of inflationary pressures is not happening at a fast enough rate. With Australian inflation data scheduled next week (expected lower), this could give a good indication as to where the RBA bias may shift going forward. (DailyFX)

The USD/CAD pair retreats a few pips from its highest level since March touched during the early part of the European session and currently trades just below the 1.3800 mark, unchanged for the day. (FXStreet)

NZD/USD marks an 11-month low, hovering around 0.5790 during the Asian session on Thursday. The pair could reach November’s low during the session. (FXStreet)

EUR/JPY cross has almost recovered its intraday losses, struggling below the session’s opening bid at 158.71 during the European trading hours on Thursday. The cross receives upward support ahead of the Monetary Policy Statement from the European Central Bank (ECB) due to be released later in the day. (FXStreet)

The EUR/GBP cross holds positive ground for the second consecutive day during the early European trading hours on Thursday. Investors will closely monitor the European Central Bank (ECB) interest rate decision later on Thursday, which is anticipated to hold the rate unchanged. The cross currently trades around 0.8726, gaining 0.02% on the day. (FXStreet)

The GBP/USD pair extends this week's retracement slide from the vicinity of the 1.2300 mark and remains under some selling pressure for the third successive day on Thursday. The pair weakens further below the 1.2100 round figure, hitting over a three-week low during the Asian session, and is pressured by sustained US Dollar (USD) buying interest. (FXStreet)

West Texas Intermediate (WTI) Crude Oil prices struggle to capitalize on the previous day's goodish rebound from sub-$82.00 levels, or a near two-week low and oscillates in a narrow trading band through the Asian session on Thursday. The commodity currently trades around the $85.00/barrel mark, nearly unchanged for the day, as investors keep a close eye on developments surrounding the Israel-Haman war. (FXStreet)

Prices of natural gas extended the rebound and flirted with the key $3.00 mark per MMBtu on Wednesday. The move was in tandem with rising open interest and favours the continuation of the rebound in the very near term. Above the $3.00 mark, there are no resistance levels of note until the October highs near $3.50 (October 9). (FXStreet)

Gold price (XAU/USD) gains some positive traction for the second successive day on Thursday and continues scaling higher through the first half of the European session. The safe-haven precious metal has now moved back closer to its highest level since May 16 touched last Friday and remains well supported by the risk of a potential escalation in the Israel-Hamas war. This, to a larger extent, helps offset a further rise in the US Treasury bond yields, bolstered by hawkish Federal Reserve (Fed) expectations, which pushes the US Dollar (USD) to a three-week high and tends to undermine the non-yielding yellow metal. (FXStreet)

Silver (XAG/USD) builds on the previous day's bounce from the vicinity of mid-$22.00s, or over a one-week low and scales higher through the early part of the European session on Thursday. The white metal, for now, seems to have snapped a three-day losing streak and currently trades around the $23.00 round figure, up nearly 1% for the day. (FXStreet)

Source: FXStreet, DailyFX

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