In this article, we have covered the highlights of global market news about the EUR/USD, USD/IDR, GBP/USD and USD/JPY.

EUR/USD: The parity zone is a challenging obstacle for the bulls.

Investors seem to be taking profits on some of the recent significant increase, which has caused EUR/USD to drop back to the mid-0.9900s thus far in the European morning.

Due to the strong uptick in demand for the dollar after two days of daily gains, EUR/USD is presently under mild selling pressure.

In fact, despite the minor rebound in US and German yields, the US Dollar Index (DXY) manages to regain some upward momentum after bottoming out close to the 110.00 level, or 2-week lows.

Data-wise, the Eurozone saw a decline in Germany’s trade surplus to €1.2 billion in August and an unexpected increase in France’s industrial production of 2.4% MoM over the same time. Furthermore, final findings showed that the Services PMI in Germany declined to 45.0 and 48.8 for the larger Eurozone.

Later in the NA session, the MBA Mortgage Applications, the final S&P Global Services PMI, the ISM Non-Manufacturing, the Balance of Trade, and the ADP Employment Change Report are all due. Atlanta Fed R.Bostic is scheduled to speak on behalf of the Fed.

The sharp comeback in the EUR/USD has run into some strong resistance close to the crucial parity zone.

Price movement around the euro is anticipated to closely track dollar trends, geopolitical tensions, and the Fed-ECB divergence in the interim. Following the Fed’s most recent rate increase and Powell and the other members of his rate-setting colleagues’ persistently hawkish stance, the latter has become much worse.

USD/IDR will reach 15,500 before stabilizing in 2023 – MUFG

The Indonesian rupiah dropped from 14,840 to 15,224 versus the US dollar in September. MUFG Bank economists predict the USD/IDR pair to hit 15,500 before falling back the following year.

“We now anticipate a further 75 bps increase in BI in Q4-2022 and another 75 bps increase in 2023.”

“Resilient current account dynamics may promote IDR. We anticipate a 0.4% GDP current account surplus in 2022 and a 0.5% GDP deficit in 2023.

“We anticipate a Q4 USD/IDR of 15,500 before stabilising in 2023.”

We predict that the USD/IDR will be 15,300 in Q1 2023, 15,100 in Q2 2023, and 14,900 in Q3 2023.

GBP/USD: Limited chance of long-term gains, according to Scotiabank

GBP/USD has significantly recovered from the record low of 1.0350 set in late September. Have we reached our nadir? The pound continues to face severe headwinds, according to economists at Scotiabank.

The short-term extension of the pound’s recovery is possible, but the possibility of longer-term gains may be constrained until political, economic, and fiscal issues are better understood.

In the immediate future, “Cable may retake 1.17/1.18, but gains beyond that will probably depend on the larger US Dollar trend,”

USD/JPY is likely to touch 143.00 – UOB

The USD/JPY might now revert to the 143.00 area in the following weeks, according to economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group’s Global Economics & Markets Research.

View for the next 24 hours: “Our prediction that the US Dollar will ‘trade sideways between 144.20 and 145.15’ yesterday was wrong. The US Dollar reached a low of 143.88 before it continued to fall during early Asian trading. Rapidly increasing downward momentum raises the possibility of the US Dollar breaking 143.50. However, it seems doubtful that the US Dollar will test the next significant support at 143.00. Upside, a small barrier around 144.20 is likely strong enough to stop any intraday bounce.

Within the next one to three weeks: “Two days ago (03 October, spot at 144.70), we underlined that the recent build-up in upward momentum has fizzled out, and we projected USD to trade between 143.50 and 145.60. The US dollar hit a low of 143.88 yesterday before continuing to fall today. As short-term downward momentum increases, we expect the US Dollar to trade with a bearish tilt toward 143.00. If the US Dollar rises over the strong resistance level, which is now at 144.90, our conclusion will be invalidated.

Please click here for the Market News Updates from 4 October, 2022.