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

EURUSD is unlikely to trade above parity in the following weeks, according to ING.

Yesterday, the EUR/USD rose back over parity. However, ING analysts do not anticipate the pair to rise over 1.00.

Maintaining parity is a problematic endeavor. “In the eurozone, we heard demands for more tightening, with Governing Council member Francois Villeroy de Galhau and President of the European Central Bank Christine Lagarde keeping a hawkish tone. However, we doubt that, at this time, this is providing peculiar support to the Euro.

“While the US inflation report and the midterm elections are two key risk events for the dollar, macro factors continue to point toward a weaker EURUSD, and we doubt that the procyclical EURUSD will easily remain above parity in the coming weeks given the economic unpredictability in the eurozone ahead of the winter and a still hawkish Fed.”

NZDUSD: Kiwi’s turn is approaching – ANZ

For FX analysts and the New Zealand Dollar, 2022 has been a tough year. The US Dollar remains strong, but ANZ analysts predict that the NZD will do better in 2023.

The dominance of the US Dollar will gradually fade. While it is hard to predict when geopolitical threats may decrease, we anticipate that US Dollar dominance will gradually decline as the US economic cycle matures.

The RBNZ is anticipated to raise rates by 75 basis points in its subsequent sessions, while the Fed is anticipated to pause its rate rises, giving the New Zealand dollar room to reclaim some lost territory.

“New Zealand has significant external imbalances. The fact that the deficit is expected to shrink over 2023 as foreign tourism returns (from a near-zero base) helps lessen a negative in the equation for the NZD. However, markets often consider this more of a risk factor than a cause to sell the NZD aggressively.

GBPUSD Price Analysis: Drops below 1.1400 Support Confluence

Around 1.1485 on Tuesday morning in London, the GBPUSD registers its first daily loss in three days. The Cable pair treats from a resistance line with a decreasing slope since October 27.

The bears are expected to maintain control for some time, given the RSI retreat confirming the quote’s most recent downturn.

Consequently, the market pays attention to a confluence of the 100-SMA and a support line that extends for one week, close to 1.1410. The round number 1.1400 also functions as a low filter.

The 50% and 61.8% Fibonacci retracements of the pair’s upward movement from October 12-26, which are located respectively at 1.1285 and 1.1200, might act as resistance for the bears if the GBPUSD price goes below 1.1400.

The final line of defense for the GBPUSD bulls looks to be an upward-sloping trend line from October 13 that reaches at least 1.1190.

The indicated resistance line, which is close to 1.1535 at the time of publication, has several obstacles around near 1.1570, 1.1630, and 1.1650 that might provide a problem for GBPUSD buyers.

Above all, until it crosses the top of 1.1738 from September, the quotation is still on the bear’s radar.

USDCAD: Upside risks are identified – Commerzbank

Last Friday, USD/CAD fell under the 1.35 threshold. But Commerzbank analysts doubt that the Canadian dollar will gain much more ground versus the US dollar.

Interest rates at the Bank of Canada are predicted to peak at 4.6%.
“The market tends to anticipate that Fed rates will peak at little below 5.3%, while it anticipates that BoC interest rates would top at 4.6%. If the BoC could manage to sound aggressive, the drift in rate rise expectations may diminish again, but that seems less probable.

Furthermore, worries about more noticeable impacts on the property market and the greater risk of a (deeper) recession should also have an impact if the market were to price in further rate rises from the BoC. In the latter case, CAD positivity is unlikely.

In addition, because of its status as a haven, the US Dollar continues to be the market’s favored currency in cases of increased risk aversion.

Please click here for the Market News Updates from 7 November, 2022.