Market Update - 15 November 2023

EUR/USD edges lower and snaps a three-day winning streak to over a two-month high. A modest USD uptick is seen exerting pressure, though the downside seems cushioned. Bets that the Fed is done raising rates should cap gains for the USD and lend support. (FXStreet)

NZD/USD reverses an Asian session dip and moves back to over a one-month top set on Tuesday. The mixed Chinese macro data does little to provide any impetus amid a modest USD recovery. Expectations that the Fed is done with its rate-hiking cycle should cap the USD and favour bulls. (FXStreet)

GBP/USD recorded a notable surge of 1.79% in the last trading session. US CPI eased at 3.2% from 3.7%; Core CPI rose 0.2% against the expected 0.3%. BoE may hold off on making any policy adjustments if UK inflation follows the anticipated slowdown. (FXStreet)

USD/CAD gains ground around 1.3688 on the softer USD. October's US Consumer Price Index (CPI) grew 3.2% YoY vs. 3.7% prior. The rebound in oil prices might lift the Canadian Dollar (CAD). All eyes are on the US Retail Sales and Producer Price Index (PPI) on Wednesday. (FXStreet)

GBP/JPY gains positive traction for the fourth straight day and trades near a multi-year peak. The BoJ’s dovish stance, along with the risk-on mood, undermines the JPY and offers support. Traders now look to the latest UK consumer inflation figures before placing directional bets. (FXStreet)

The sharp sell-off in the index meets some support near 104.00. Investors now see the Fed reducing its rates in the summer 2024. Producer Prices, Retail Sales take centre stage later in the session. The greenback attempts to grab some breathing space following Tuesday’s steep CPI-driven pullback to the vicinity of 104.00 when tracked by the USD Index (DXY). (FXStreet)

USD/JPY experiences challenges on weaker Japan’s economic data. Japan's GDP declined by 0.5% in Q3 against the previous growth of 1.2%. Japanese Economy Minister Yasutoshi Nishimura warned about the impact of a global slowdown on Japan's GDP. Weaker US inflation reinforces the prevailing sentiment of concluding the rate-hike cycle by the Fed. (FXStreet)

EUR/GBP trades in positive territory around 0.8700 ahead of the UK key data. The Eurozone Gross Domestic Product (GDP) contracted quarter-on-quarter in the third quarter (Q3). The UK monthly and annual CPI figures are expected to rise 0.1% and 4.8%, respectively. (FXStreet)

USD/CHF plunged more than 100 pips as US inflation eased more than anticipated. Soft US CPI data raises the likelihood of the Fed not increasing interest rates further. SNB Chairman Jordan suggested the room for more rate hikes in the future. (FXStreet)

USD/MXN experienced losses as the US Dollar dropped on weaker inflation. Weaker US inflation reinforces the prevailing sentiment of concluding the rate-hike cycle by the Fed. Banxico Governor Rodriguez mentioned the possibility of rate cuts on easing the inflationary outlook. (FXStreet)

WTI catches fresh bids on Wednesday and stalls the overnight retracement slide from a one-week high. Optimism over the EIA and OPEC demand forecast for 2023 turns out to be a key factor lending support. Signs that tensions in the Middle East could be easing might keep a lid on any further gains for Oil prices.  (FXStreet)

Gold price gains some positive traction for the third straight day and climbs to a one-week high on Wednesday. The USD languishes near its lowest level in more than two months amid bets that the Fed is done raising rates.  The prevalent risk-on mood might hold back bulls from placing fresh bets and cap the upside for the XAU/USD. (FXStreet)

Silver price aims to climb above $23.20 amid easing US price pressures. The USD Index fell sharply due to the risk-on mood. Silver price recovered strongly after discovering buying interest near 61.8% Fibo retracement at $21.86. (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.