Market Update - 07 December 2023

EUR/USD states a modest recovery from a multi-week low touched earlier this Thursday. Fed rate cut bets and a strong pickup in the JPY demand prompt some USD profit-taking. A softer risk tone should limit the USD losses and cap the pair amid dovish ECB rhetorics. (FXStreet)

USD/CAD drifts higher on the firmer US Dollar. The Bank of Canada (BoC) maintained its key overnight rate unchanged at 5.0%. ADP private payrolls climbed 103K in November versus 106K prior. Canadian Building Permits for October and US weekly Jobless Claims will be due later on Thursday. (FXStreet)

GBP/USD remains under selling pressure around 1.2560 on the stronger USD. Analysts anticipate the Fed will hold rates until at least July, later than earlier thought. Bank of England’s Bailey said interest rates in the UK will need to stay at current levels for some time. Investors await the weekly US Jobless Claims for fresh impetus. (FXStreet)

The USD/JPY climbed a scant tenth of a percent on Wednesday, seeking higher ground. US ADP Employment Change missed the mark, keeping risk flows pinned closer to havens. Japan GDP, US NFP to close out the trading week. (FXStreet)

The EUR/GBP has been in a tight consolidation range this week as both currencies see declines. European Retail Sales disappointed, remain in contraction territory despite a moderate rebound. Eurozone GDP coming up on Thursday, markets expecting a flat reading. (FXStreet)

AUD/USD remains under some selling pressure for the fourth successive day on Thursday. China’s economic woes and RBA rate cut bets weigh on the Aussie amid the recent USD rally. Dovish Fed expectations might cap any further USD gains and lend some support to the pair. (FXStreet)

The GBP/JPY is seeing some push-and-pull on Wednesday, close to the day’s opening bids. 185.20 is firming up as a technical support level as highs sag, squeezing the Guppy into the middle. Early Thursday sees Japanese Gross Domestic Product (GDP). (FXStreet)

EUR/JPY down for eighth day but holds above Ichimoku Cloud; Yen weakness cushions potential bearish momentum. ECB's Isabel Schnabel welcomes inflation data, signaling potential rate cuts ahead, diverging from the US Federal Reserve's stance. Key levels: For bearish momentum, watch for breach of 158.38, targeting Kumo bottom at 157.61; upside potential with 159.00 psychological figure. (FXStreet)

NZD/USD is up by 0.02%; anticipates consolidation within 0.6130/0.6200 range before US Nonfarm Payrolls, on Friday, Sour market mood reflected in negative US equity market close; ADP Employment Change and widened trade deficit weigh on sentiment. Despite data indicating labor market easing, Non-Manufacturing PMI and Q3 GDP above 5% threshold signal solid US economic growth. (FXStreet)

AUD/JPY halts downtrend with the pair gaining 0.10%, despite market sentiment remaining sour. Potential consolidation as weekly lows hold; breach below 96.26 may lead to testing psychological support at 96.00. Upside potential if buyers reclaim Kijun-Sen at 97.08, targeting Senkou Span A at 97.25 and November 30 high at 98.10. (FXStreet)

NZD/JPY reversed its course on Wednesday, peaking at a high of 90.90 and then settling at 90.40. Bullish momentum flattened on the daily chart. Shorter time frames indicate that bears are gaining traction. (FXStreet)

The AUD/NZD is down 0.8% on the week as the Aussie backslides. The Aussie sees six-week lows against the Kiwi. The next target for sellers will be 1.0600. (FXStreet)

WTI extends its downside below $70.00, the lowest since July. China has seen arrivals of 10.33 million barrels per day (bpd), down 10.4% from October's reading. Oil traders are worried that OPEC+ failed to reach a unanimous agreement on production targets. US weekly Jobless Claims data will be due later on Thursday. (FXStreet)

Gold price ticks higher for the second straight day and draws support from a combination of factors.  Hopes that interest rates have peaked globally act as a tailwind amid broad-based USD weakness. A softer risk tone also contributes to the uptick, though bulls prefer to wait for the US NFP on Friday. (FXStreet)

Source: FXStreet, DailyFX

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