Market Update - 14 November 2023

EUR/USD trades in positive territory for the third consecutive day on the lower Treasury bond yields. European Central Bank (ECB) Vice President Luis de Guindos said Eurozone economic growth will remain weak in the near term. Fed Chair Jerome Powell reiterated that the Fed will hike rates again if deemed necessary to bring inflation to the 2% target. Investors will closely watch the Eurozone growth numbers, and US inflation data on Tuesday. (FXStreet)

GBP/USD snaps a two-day winning streak ahead of UK data. BoE policymakers expressed fear over the deepening recession, endorsing rate cuts. US CPI is expected to rise but at a slower pace. with the core annual rate to remain stable. (FXStreet)

USD/JPY pair consolidates its losses ahead of the US key data. New York Fed’s one-year and five-year inflation outlook eased to 3.57% and 2.72% respectively. Japanese Finance Minister Suzuki and Bank of Japan (BoJ) Deputy Governor Shinichi Uchida denied to comment on FX levels. Traders will focus on the US inflation data ahead of Japan’s growth numbers on Wednesday. (FXStreet)

NZD/USD continues the downward trajectory for more than a week. NZD faces downward pressure as New Zealand's Food Price Index fell 0.9% in October. Goldman Sachs anticipates the RBNZ to commence rate cuts starting in the fourth quarter of 2024. US inflation could grow but at a slower pace, which could put pressure on the US Dollar. (FXStreet)

USD/CAD moves higher due to the market caution before US data. US Treasury Secretary Yellen disagrees with Moody's decision to cut its outlook on US debt. CAD fails to cheer the improved Crude oil prices. WTI price strengthened on OPEC’s monthly report, stating market fundamentals remained strong. (FXStreet)

The index trades without a clear direction on Tuesday. All the attention will be on the release of October CPI figures. Fed’s Barr, Goolsbee and Mester also speaks later. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, alternates gains with losses around the 105.70 zone on turnaround Tuesday. (FXStreet)

EUR/GBP remains volatile due to the slew of economic data from both economies. UK ILO Unemployment Rate remained consistent at 4.2% in September. UK fears over the stagflation scenario following the elevated inflation levels and a higher unemployment rate. Eurozone GDP is expected to contract by 0.1% in the quarter, while the annual growth is estimated to expand by 0.1%. (FXStreet)

USD/MXN could weaken as US inflation is expected to rise at a lower rate. Fed may consider a rate hike if US CPI data exceeds the expectation. Banxico Governor Rodriguez highlighted the possibility of rate cuts. (FXStreet)

EUR/JPY prints a fresh decade high near 162.30 ahead of Eurozone Q3 GDP data. The Eurozone Q3 GDP is seen contracting by 0.1%. A delay in Japan’s intervention plans has weakened the Japanese Yen. (FXStreet)

USD/CHF seems well-cushioned above 0.9000 ahead of US CPI data. A stubborn inflation report may allow the Fed to emphasize raising interest rates further. SNB Jordan is likely to emphasize keeping interest rates higher to keep inflation below 2%. (FXStreet)

WTI prices trades in negative territory around $78.30 on Tuesday. OPEC's monthly report suggests that oil demand remains strong, revised up its 2023 forecast for global oil demand growth. Oil traders will closely monitor the US Consumer Price Index (CPI) for October. (FXStreet)

Gold price loses ground around $1,945 ahead of the US CPI data. The geopolitical conflicts in the Middle East could boost safe-haven assets like gold. The immediate resistance level is seen at $1,953; the initial support level will emerge at $1,934. (FXStreet)

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.