Market Update - 08 December 2023

The Japanese Yen surged to a four-month top against the USD after BoJ Governor Ueda’s comments on Thursday. Rebounding US bond yields push the USD higher and assist USD/JPY to find support near the mid-142.00s on Friday. The divergent BoJ-Fed policy expectations keep a lid on any further recovery ahead of the crucial US NFP report. (FXStreet)

EUR/USD ticks lower on Friday and erodes a part of the overnight recovery gains. Rebounding US bond yields revive the USD demand and exert pressure on the pair. Fed rate cut bets could cap the buck and lend support ahead of the US NFP report. (FXStreet)

USD/CAD loses ground near 1.3577 amid the USD weakness. The US weekly Initial Jobless Claims increased 220K vs. 218K prior, Continuing Claims eased from 1.925M to 1.861M. Bank of Canada (BoC) held interest rates steady at its December meeting while opening the door for further hikes. The US Nonfarm Payrolls and Unemployment Rate will be in the spotlight on Friday. (FXStreet)

GBP/USD remains confined around 1.2586 ahead of the key US event. The Bank of England (BoE) is likely to maintain the interest rate at 5.25% at its December meeting. US Initial Jobless Claims rose 220K vs. 218K prior, Continuing Claims dropped to 1.861M vs. 1.925M prior. US Nonfarm Payrolls will be a closely watched event by traders. (FXStreet)

The DXY Index trades with significant losses on Thursday, remaining below the 20-day SMA near 103.50. Speculation emerges for a policy pivot by the BoJ after Ueda’s comments drive demand away from the USD to the JPY. Investors gear up for US Nonfarm Payrolls data on Friday. (FXStreet)

EUR/JPY starts Friday flat at 155.62 after Thursday's sharp plunge; downward bias sustained post-BoJ Governor Ueda's remarks. Cross pair remains bearish, as technical indicators signal further losses; Tenkan-Sen below Kijun-Sen. Key support levels lie at 155.00, followed by October 3 low of 154.34, and December 7 low of 153.11. (FXStreet)

AUD/JPY shifts bearish, after the pair dropped more than 130 pips on Thursday. Daily time frame shows bears in control as Chikou Span turns bearish while Kijun-Sen crosses above Tenkan-Sen. Key support levels lie at 95.00 initial support, followed by 94.00 and December 7 low of 93.70, October 3 low of 93.01. (FXStreet)

AUD/USD trades with a mild positive bias for the second straight day on Friday. The setup seems tilted in favour of bulls and supports prospects for further gains. Traders, however, seem reluctant to place aggressive bets ahead of the NFP report. (FXStreet)

NZD/JPY experienced a 1.60% downslope, consolidating at 88.90 after falling to 87.70. Hawkish bets on the BoJ and speculations of a liftoff are responsible for the strength of the JPY. The daily chart reveals a negative RSI slope and increasing red MACD Bars, suggesting a strong bearish momentum. (FXStreet)

NZD/USD loses ground near 0.6165 amid the cautious mood. New Zealand Manufacturing Sales for Q3 arrived at -2.7% vs. 2.9% prior. US Initial Jobless Claims showed 220,000 from the previous week of 218,000. Traders await the highly-anticipated US Nonfarm Payrolls data, due later on Friday. (FXStreet)

WTI prices rebound to $70.85 after hitting the the six-month lows. Saudi Arabia and Russia called on all OPEC+ members to join an agreement on production cuts for the stability of global oil markets. China’s Crude oil Imports declined 9% year on year in November. Oil traders await the US Nonfarm Payrolls report on Friday. (FXStreet)

Gold price struggles to gain any meaningful traction and oscillates in a range on Friday. Expectations that the Fed is done with its policy-tightening campaign act as a tailwind Rebounding US bond yields, reviving USD demand and a positive risk tone cap gains. Traders also seem reluctant to place directional bets ahead of the crucial US NFP report. (FXStreet)

Source: FXStreet, DailyFX

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