Market Update - 27 October 2023

The EUR/USD pair recovers some lost ground above the mid-1.0500s during the early European session on Friday. The lower US Treasury bond yields drag the US Dollar (USD) lower, which acts as a tailwind for the EUR/USD pair. (FXStreet)

The USD/JPY pair edges lower during the Asian session on Friday and for now, seems to have snapped a three-day winning streak to its highest level since October 2022, around the 150.75-150.80 region touched the previous day. Spot prices, however, manage to hold above the 150.00 psychological mark as traders keenly await the US PCE Price Index before positioning for the next leg of a directional move. (FXStreet)

The GBP/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.2070 area, or over a three-week low and seesaws between tepid gains/minor losses during the Asian session on Friday. Spot prices, meanwhile, manage to hold comfortably above the 1.2100 round-figure mark and remain at the mercy of the US Dollar (USD) price dynamics. (FXStreet)

USD/CHF continues the winning streak that began on Tuesday, gaining fresh weekly highs near 0.9000 during the Asian session on Friday. The US Dollar (USD) struggles to move upward, with the potential for support as US Treasury yields rebound following losses from the previous day. The yield on 10-year US bonds trades at 4.87% by the press time. (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)

USD/CAD snaps a three-day winning streak, retreating from the seven-month highs. The spot price trades around 1.3820 during the early European session on Friday. The pair faces challenges due to the higher Crude oil prices amid geopolitical tension pertaining to the Israel-Hamas conflict. (FXStreet)

NZD/USD rebounds from the year-to-date low of 0.5772, trading around 0.5830 during the Asian session on Friday. The pair bid the lowest on Thursday since November 2022 as the New Zealand Dollar (NZD) is contending with pressure, with the situation exacerbated by the recent release of headline Consumer Price Index (CPI) data from the nation. (FXStreet)

The EUR/JPY cross loses ground during the early European trading session on Friday. The cross currently trades around 158.61, up 0.01% for the day. Market players await the Spain’s Gross Domestic Product (GDP) estimated for the third quarter. The quarterly and annual growth numbers are expected to expand by 0.3% and 1.6%, respectively. (FXStreet)

USD/MXN treads water to retrace the losses registered in the previous session, trading around 18.1600 during the Asian session on Friday. The Mexican Peso (MXN) surged as Mexico's employment data revealed a robust labor market, showcasing the enduring strength of the Mexican economy. (FXStreet)

WTI prices edged lower on Thursday amidst increasing open interest, which is indicative that further retracements should not be ruled out for the time being. Against that backdrop, extra losses in the commodity are expected to meet initial support around the monthly lows near $81.50 (October 6). (FXStreet)

Prices of natural gas jumped well past the $3.00 mark per MMBtu on Thursday. The strong rebound, however, was accompanied by dwindling open interest, which suggest the idea that a sustained advance should not be favoured for the time being. Next on the upside, in the meantime, emerges the round level at $4.00, an area last traded in early January. (FXStreet)

Gold price (XAU/USD) attracts some buying for the third day in a row on Friday and remains supported by a steady demand for safe-haven assets due to the ongoing conflict in the Middle East, as well as a lack of price movement in the US Dollar (USD). The precious metal maintains its bid tone through the first half of European session, albeit remains below its five-month high reached last Friday amid bets that the Federal Reserve (Fed) would need to raise interest rates further.  (FXStreet)

Silver (XAG/USD) struggles to capitalize on its modest intraday uptick and attracts some intraday sellers in the vicinity of the $23.00 mark on Friday. The white metal currently trades around the $22.80 region, nearly unchanged for the day, and remains confined in a multi-day-old range through the first half of the European session. (FXStreet)

Source: FXStreet, DailyFX

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