The Japanese Yen drifts lower for the second straight day against the US Dollar. Diminishing odds for an imminent shift in the BoJ’s policy shift undermine the JPY. The USD draws support from reduced bets for early interest rate cuts by the Fed. Investors look to the US CPI and the FOMC decision this week for a fresh impetus. (FXStreet)

USD/CAD grapples to hold ground near 1.3590 despite upbeat US Dollar. A break above 1.3600 could lead the pair to reach a 38.2% Fibonacci retracement at 1.3637. A collapse below 1.3500 could influence the pair to navigate the previous week’s low at 1.3479. (FXStreet)

EUR/USD rebounded from its three-week low at 1.0723. ECB is expected to keep the Main Refinancing Operations Rate unchanged at 4.5% in its upcoming meeting. Fed may maintain interest rates at 5.5% during the policy meeting on Wednesday. Solid US labor data triggered the discussion on the duration of tightened monetary policy by the Fed. (FXStreet)

GBP/USD remains on the defensive around 1.2539 ahead of the FOMC, and BoE rate decision. The pair maintains the bearish outlook, holding below the 50- and 100-hour EMA; the RSI indicator stands in the bearish zone below 50. 1.2530 acts as an initial level; the immediate resistance level will emerge at 1.2590. (FXStreet)

USD/CHF moves sideways near the psychological level ahead of US inflation. Fed is expected to maintain interest rates at 5.5% during the policy meeting on Wednesday. Market expects the Fed to keep monetary policy tightened for a longer period as the labor market showed resistance. SNB is predicted to maintain policy rates at 1.75% in its upcoming meeting on Thursday. (FXStreet)

NZD/USD trades lower around 0.6120 as US Dollar remains firm. Stronger US NFP data contributed support to underpinning the Greenback. US Fed is expected to maintain the cash rate at 5.5% in December's meeting. New Zealand’s GDP data for Q3 is expected to decline from the previous quarter’s growth. (FXStreet)

AUD/USD loses ground near 0.6572 on the stronger US Dollar. US Nonfarm Payrolls (NFP) for November rose by 199K vs. 150,000 prior, above expectations. The downbeat Chinese CPI and PPI data weigh on the Australian Dollar. Investors await the RBA’s Bullock speech and US CPI data on Tuesday. (FXStreet)

USD/CNH gains ground near 7.1960 on the cautious mood and downbeat Chinese data. The pair holds above the 50- and 100-hour EMA; RSI indicator stands in the overbought condition. The immediate resistance level is seen at 7.2100; 7.1776 acts as an initial support level for the pair. (FXStreet)

USD/MXN recovers its recent losses as US Dollar stays firm post upbeat US labor data. US NFP for November reported an increase of 199,000 jobs, and the US Unemployment Rate fell to 3.7%. Banxico is expected to hold cash rates at the level of 11.25%. (FXStreet)

Indian Rupee remains firm ahead of the FOMC meeting. The Reserve Bank of India (RBI) MPC decided to keep the rate steady at 6.50% at its December meeting. Investors will closely monitor the US inflation data ahead of the FOMC interest rate decision. (FXStreet)

The GBP/JPY catches a soft bid to challenge 182.00 after a week of stubborn losses. The Yen surged on the week, bolstered by a hawkish BoJ. The Guppy heads into next week’s central bank showdown on the low side. (FXStreet)

NZD/JPY tallied a 2.60% weekly decline, its worst since December 2022. On the daily chart, indicators favor the bears in the short term. On the four-hour chart, bears stepped out to consolidate their recent movements. (FXStreet)

The Swiss Franc is weakening in most of its pairs, but especially against the USD and GBP after the release of US Payrolls. Nonfarm Payrolls in November rose by 199K, higher than the 180K expected; Unemployment dropped to 3.7% and wages rose. The data supported the US Dollar and riskier currencies against the safe haven Franc. (FXStreet)

Despite printing daily gains, the AUD/JPY is set to finish the week down by more than 2%. Daily chart suggests a neutral to downward bias for the pair, with potential upside risks if a daily close is within Ichimoku Cloud boundaries. A daily close occurs below the top of the Kumo, the potential for further losses; with key support seen at 95.00, followed by a December 8 low of 94.17. Upside resistance includes November 10 swing low-turned resistance at 95.85, ahead of the 96.00 figure, and the Kijun-Sen at 96.14. (FXStreet)

WTI Oil prices ticks higher during the Asian session on Monday, though lacks follow-through. Signs of a resilient US economy fuel optimism over the demand outlook and lend support. China’s economic woes might cap any further gains ahead of the key central bank event risks. (FXStreet)

The DXY Index rose above the 20-day SMA towards 104.05 and will close a 0.75% winning week. US NFPs from November accelerated, as did Average Hourly Earnings. The Unemployment Rate declined. US is set to report CPI inflation next Tuesday. (FXStreet)

Gold price remains under some selling pressure for the second successive day on Monday. Reduced bets for a March Fed rate cut move and a modest USD uptick weigh on the metal. Geopolitical risks could help limit further losses ahead of this week’s key data/event risks. (FXStreet)

Silver’s price action reveals a less volatile descent than that of gold but also shows a more consistent move lower. In fact, this last week silver traded lower for 5 consecutive days and hurtled past the 200 SMA on Friday with ease. The next dynamic level of support appears at the 50 SMA before the 38.2% Fibonacci level of the 2021 to 2022 decline at $22.35 comes into play. The 38.2% Fib level has provided support on numerous occasions previously (circled in red). This should provide a stern test in the week ahead and traders ought to keep a close eye on the RSI which is not yet at risk of breaching oversold territory. A failure to build upon prior losses, could see the 200 SMA providing resistance followed by the lesser observed 50% Fibonacci retracement. (DailyFX)

Source: FXStreet, DailyFX

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