Market Update - 08 November 2023

The index pushes harder and approaches 106.00. US yields trade in a mixed tone so far on Wednesday. Chair Powell speaks later in the NA session. The greenback extends its weekly bounce and approaches the key 106.00 yardstick when gauged by the USD Index (DXY) on Wednesday. (FXStreet)

EUR/USD could reach to seven-day EMA as the Greenback continues the winning streak. Technical indicators suggest the bullish momentum in the market sentiment. A successful breach above the 1.0700 psychological level could support the pair to reach 38.2% Fibonacci retracement. (FXStreet)

GBP/USD struggles to gain any meaningful traction and remains confined in a range. A bleak UK economic outlook and bets for a BoE rate cut in 2024 weigh on the GBP. A subdued USD demand acts as a tailwind ahead of BoE’s Bailey and Fed’s Powell. (FXStreet)

USD/CAD trades with a positive bias for the third successive day on Wednesday. Bearish Crude Oil prices continue to undermine the Loonie and act as a tailwind. Subdued USD price action caps the upside ahead of Fed Chair Powell’s speech. (FXStreet)

USD/CHF consolidates post-intraday gains on improved US bond yields. Improved market sentiment weighs on the Swiss Franc (CHF). Minneapolis Fed President Neel Kashkari's comments propel Greenback's upward momentum. (FXStreet)

USD/JPY gains traction for the third straight day, albeit lacks follow-through buying. Traders seem reluctant and look to Fed Chair Powell’s speech for a fresh impetus. The technical setup supports prospects for a further appreciating move for the pair. (FXStreet)

AUD/USD moves on a downward trajectory as the RBA delivers a dovish rate statement. RBA is concerned about the economy slowing down amid persistent inflation risks. IMF upgraded China’s GDP to grow by 5.4% in 2023 and 4.6% in 2024. (FXStreet)

GBP/JPY trades with a mild negative bias for the second straight day, albeit lacks follow-through. The BoE’s bleak outlook for the UK economy continues to weigh on the GBP and exert pressure. The downside remains cushioned as traders now look to BoE Governor Andrew Bailey’s speech. (FXStreet)

NZD/USD draws some support from subdued USD demand, through lack follow-through. A positive risk tone, along with a further decline in the US bond yields, undermines the USD. The uncertainty over the Fed’s rate hike path holds back traders from placing directional bets. Investors also seem reluctant ahead of Fed Chair Jerome Powell’s speech later this Wednesday. (FXStreet)

Prices of WTI sold-off markedly on Tuesday, breaching the $80.00 mark per barrel and the critical 200-day SMA. The pronounced pullback was in tandem with declining open interest and warns against a sustained decline in the very near term. So far, the $77.00 region emerges as a decent near-term contention area for the time being. (FXStreet)

Prices of natural gas extended the bearish correction and came closer to the key $3.00 mark per MMBtu on Tuesday. The daily pullback was accompanied by rising open interest and volume and is indicative that further losses remain on the cards in the very near term. That said, there is room for further weakness to the $3.00 region, an area that remains underpinned by the transitory 55-day SMA near $2.95. (FXStreet)

Gold price edges lower for the third successive day, albeit manages to hold above a two-week low. The USD sticks to its strong recovery gains and turns out to be a key factor weighing on the metal. The downside seems cushioned in the wake of the uncertainty over the Fed’s future rate-hike path. Traders now await Fed Chair Jerome Powell’s scheduled speech before placing fresh directional bets. (FXStreet)

Silver drifts lower for the third straight day and drops to over a three-week low on Wednesday. The technical setup favours bearish traders and supports prospects for further near-term losses. Any attempted recovery move might now confront resistance and remain capped near $22.80. (FXStreet)

Bitcoin Remains Rangebound as Open Interest Suggests Volatility May be on its Way. Whales Continue to Accumulate Bitcoin at an Impressive Rate as the $30k Mark is Seen as Key. Technicals are Starting to Point Toward a Retracement but a Weaker US Dollar Could Help Underpin the World's Largest Cryptocurrency. (DailyFX)

Source: FXStreet, DailyFX

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