Market Update - 06 November 2023

EUR/USD enters a bullish consolidation phase near a multi-week high touched on Friday. A modest USD uptick turns out to be a key factor that is acting as a headwind for the pair. Bets that the Fed will maintain the status quo in December should cap gains for the USD. (FXStreet)

USD/JPY regains some positive traction on Monday and snaps a three-day losing streak. A modest bounce in the US bond yields helps revive the USD demand and lends support. The lack of strong follow-through buying warrants caution for aggressive bullish traders. (FXStreet)

GBP/USD oscillates in a narrow trading band through the Asian session on Monday. Rebounding US bond yields help the USD to stall the post-NFP slump and cap gains. Bets that the Fed is done hiking rates keeps a lid on the USD and should limit losses. (FXStreet)

AUD/USD extends its gains on subdued US Dollar after weaker NFP data. Aussie Dollar receives upward support as the RBA is expected to increase interest rates by 25 basis points. Greenback faces challenges on Fed’s dovish tone regarding monetary policy tightening in December. (FXStreet)

USD/CAD loses ground on the likelihood of no interest rate hike by the US Fed in December. US Dollar lost strength due to weaker US economic data released in the previous week. BoC is expected to keep interest rates higher for a prolonged period. (FXStreet)

The index extends the decline and challenges 105.00. Investors continue to digest Friday’s Nonfarm Payrolls. FOMC L. Cook speaks later in the NA session. The greenback, in terms of the USD Index (DXY), hovers around the area of multi-week lows near 105.00 at the beginning of the week. (FXStreet)

USD/CHF extends its losses on the likelihood of no further interest rate hike by the US Fed. Fed is expected to conclude its policy tightening as US economic data ease. CHF could lose ground as Swiss CPI persists below the 2% target. (FXStreet)

USD/INR snaps the three-day losing streak. 21-day SMA at 83.22 acts as the immediate barrier. MACD indicator suggests a bearish trend in the market sentiment. USD/INR trades higher around 83.20 lined up with immediate resistance near the 21-day Simple Moving Average (SMA) at 83.22. The USD/INR pair could gain more profits in the short term as the 50-day SMA lies slightly above the latter at 83.24. (FXStreet)

WTI seesaws between tepid gains/minor losses just above a two-month low touched on Friday. Easing fears of supply disruptions from the Middle East and a modest USD strength cap the upside. The risk of a further escalation in the Israel-Hamas conflict and tight global supply lend some support. (FXStreet)

Gold price comes under some selling pressure on Monday and extends Friday’s pullback from the post-NFP swing high. The upbeat market mood, along with a modest recovery in the US bond yields, drive flows away from the yellow metal. The USD languishes near a multi-week low amid bets that the Fed is done raising rates and should lend some support. Geopolitical tensions might further contribute towards limiting any meaningful downfall for the safe-haven XAU/USD. (FXStreet)

Silver attracts some dip-buying ahead of the $23.00 round figure, albeit lacks follow-through. The technical setup favours bullish traders and supports prospects for a further positive move. A sustained strength beyond the $23.60-70 supply zone is needed to reaffirm the bullish bias. (FXStreet)

Source: FXStreet, DailyFX

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