Market Update - 07 November 2023

USD/CAD gains traction for the second successive day and is supported by a combination of factors. Bearish Crude Oil prices undermine the Loonie and act as a tailwind amid the ongoing USD recovery. Bets that the Fed is done raising rates might keep a lid on any further gains for the USD and the pair. (FXStreet)

USD/JPY lacks any firm intraday direction and oscillates in a narrow band on Tuesday. The USD moves away from a near eight-week low and acts as a tailwind for the major. The Fed-BoJ policy divergence remains supportive ahead of speeches by Fed officials. (FXStreet)

The index advances further and retakes 105.50. US yields look to extend the weekly recovery. Balance of Trade, Fedspeak take centre stage on Tuesday. The USD Index (DXY), which tracks the greenback vs. a basket of its main competitors, manages to regain extra upside traction and reclaims the 105.50 region on turnaround Tuesday. (FXStreet)

EUR/USD remains confined in a narrow trading band for the second straight day. The USD recovers further from a multi-week low and caps the upside for the pair. The lack of follow-through warrants caution before placing aggressive bearish bets. (FXStreet)

USD/CHF extends gains for the second successive day on improved Greenback. US Dollar receives upward support as US bond yields improve. Market participants price in multiple rate cuts by the end of the year 2024. (FXStreet)

GBP/USD moves further away from a multi-week top and is pressured by modest USD strength. The BoE’s bleak economic outlook undermines the GBP and contributes to the mildly offered tone. Investors now look to speeches by influential FOMC members before placing fresh directional bets. (FXStreet)

NZD/USD drifts lower for the second straight day and is pressured by a combination of factors. The uncertainty over the Fed’s rate-hike path prompts some follow-through USD short covering. China’s economic woes take its toll on the risk sentiment and weigh on the risk-sensitive Kiwi. (FXStreet)

WTI prices rose marginally and closed just above the $80.00 mark per barrel on Monday. The move, however, was on the back of shrinking open interest and volume, leaving the commodity vulnerable to further weakness in the very near term. That said, the next contention area emerges at the 200-day SMA, today at $78.15. (FXStreet)

Prices of natural gas extended the corrective decline on Monday against the backdrop of increasing open interest and volume, allowing for the continuation of the ongoing decline in the very near term. That said, the next support is now seen at the mid-October lows around the $2.90 region per MMBtu. (FXStreet)

Gold price remains under some selling pressure for the second successive day on Tuesday. A modest USD strength is seen as a key factor that drags the metal to a nearly two-week low. Bets that the Fed is done raising rates might help limit losses amid the economic uncertainty. (FXStreet)

Silver remains under some selling pressure for the second successive day on Tuesday. The formation of a rectangle points to indecision over the next leg of a directional move. The technical setup favours bearish traders and supports prospects for additional losses. (FXStreet)

Source: FXStreet, DailyFX

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