Market Update - 02 November 2023

GBP/JPY drifts lower for the second straight day, though the downside remains limited. Intervention fears boost the JPY and turn out to be a key factor weighing on the cross. The BoJ’s dovish stance and a positive risk tone cap any meaningful gains for the JPY. Traders also seem reluctant to place aggressive bets ahead of the crucial BoE decision. (FXStreet)

EUR/USD attracts some buyers near 1.0600 post-Fed meeting. The Federal Open Market Committee (FOMC) held the rate steady at the 5.25%–5.50% range, as widely expected. ECB’s Joachim Nagel said the ECB must keep the rate higher for longer. Market players will monitor the Eurozone HCOB Manufacturing PMI and the US weekly Initial Jobless Claims. (FXStreet)

GBP/USD gains momentum below the 1.2200 barrier post-Fed meeting. The pair holds above the 50- and 100-hour EMAs, RSI indicator stands in the bullish zone. The key resistance level to watch is the 1.2200–1.2210 region; 1.2147 acts as an initial support level. (FXStreet)

A combination of factors drags USD/CAD away from the YTD peak touched on Wednesday. A modest uptick in Oil prices underpins the Loonie and exerts pressure amid a weaker USD. A positive risk tone is seen as another factor denting demand for the safe-haven Greenback. (FXStreet)

USD/JPY remains under some selling pressure for the second successive day amid a weaker USD. Expectations that the Fed is don raising rates and sliding US bond yields weigh on the Greenback. The Fed-BoJ policy divergence should limit gains for the JPY and limit the downside for the major. (FXStreet)

AUD/JPY climbs to a five-week high following the Federal Reserve's decision to hold rates steady. Wall Street rally and upbeat market sentiment benefit risk-perceived currencies like the Aussie Dollar. From a technical perspective, AUD/JPY is neutral to upward biased, with potential resistance at 96.92 and 97.00 marks. (FXStreet)

The EUR/GBP is trading back up from the day's bottom, but struggling to maintain momentum. Euro weakening after data softened further on Tuesday, EU GDP missed market calls. The BoE is slated for Thursday, expected to hold despite sticky inflation. (FXStreet)

The NZD/USD is seeing a recovery fueled mostly by broad-market US Dollar selling. NZ economic data has broadly missed the mark, hampering upside potential. Markets set to keep an eye out for Friday's US NFP. (FXStreet)

NZD/JPY cleared most of its daily losses and closed at 88.220 after bottoming at a low of 87.556. The cross finished the session above the 20 and 100-day SMA. Indicators on the daily chart are now favouring the bulls. (FXStreet)

AUD/USD gains traction for the second straight day and climbs to over a three-week top. The post-FOMC USD selling bias turns out to be a key factor behind the ongoing move up. A move beyond the 50-day SMA and the 23.6% Fibo. supports prospects for further gains. (FXStreet)

The AUD/NZD is trading into the top side heading into Thursday. The Kiwi has been lagging as economic data continues to miss the mark. The Aussie is stepping even deeper into overbought territory. (FXStreet)

WTI prices hold positive ground above the $81.00 mark post Federal Open Market Committee (FOMC) meeting. The FOMC maintained the interest rate unchanged at the 5.25–5.50% range on Wednesday. The rising Middle East tensions could lead to supply disruptions. (FXStreet)

Gold price gains positive traction on Thursday amid sliding US bond yields and a weaker USD. Geopolitical tensions and China’s economic woes also contribute to the intraday positive move. The prevalent risk-on environment caps any further upside for the safe-haven precious metal. (FXStreet)

Silver gains some positive traction, albeit struggles to capitalize on the move beyond $23.00. The mixed technical setup warrants caution for bulls and before positioning for further gains. A sustained break below the $22.50-45 area will be seen as a fresh trigger for bearish traders. (FXStreet)

Source: FXStreet, DailyFX

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