In this article, we have covered the highlights of global market news about the USD/JPY, EUR/GBP, NZD/USD and AUD/USD.
USD/JPY encounters strong resistance around 138.00 – UOB
The USD/JPY is expected to remain under pressure around the 138.00 zone in the short term, according to UOB Group Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
“USD fell to a low of 138.45 in late NY trading last Friday before bouncing back,” reads the 24-hour view. The recovery under oversold circumstances indicates that additional USD weakness is unlikely. For now, it’s more probable that the USD will fluctuate between 138.40 and 140.30.
Next 3 weeks: “USD dropped a staggering 5.32% last week, its worst weekly loss since 2008. While more USD weakening is not completely ruled out, any further decrease is likely to moderate and should find strong support around the key level at 138.00. Positively, a break of the “strong resistance” around 141.00 would suggest that the USD is unlikely to decline much more.
EUR/GBP maintains small rises over the mid-0.8700s but lacks bullish conviction.
On Monday, the EURGBP cross ekes out a slight gain for the second straight day and maintains it into the early European session. Despite being put above the mid-0.8700s, the cross lacks bullish confidence or follow-through purchasing.
Bets on the European Central Bank tightening its policies more aggressively continue to provide some support for the common currency (ECB). On the other hand, the bleak picture for the UK economy undermines the British pound. The National Institute of Economic and Social Research (NIESR) said that the probability of a recession remains high and that the UK GDP growth will be flat in Q4. In consequence, this is seen as providing some support for the EURGBP cross.
Nevertheless, the likelihood of future interest rate increases by the Bank of England boosts the value of the pound. In addition, the Euro is under some pressure from the US Dollar’s modest rebound from a nearly three-month low, which, for the time being at least, restrains the EURGBP cross’s potential for considerable upside. Ahead of this week’s crucial UK macro data, including the CPI report on Wednesday and the monthly employment report on Tuesday, traders also seem reticent to make risky wagers.
NZD/USD is now trading in an established upward channel – ANZ
The Kiwi finished the Friday session nearly another penny higher, resting above 0.61, to complete a gain of more than two cents for the week. According to ANZ Bank economists, the NZDUSD is now trading in an established upward channel.
The Kiwi should benefit from having the highest bond rates in the G10 and what seems to be a decent amount of economic resilience, even if local data and concerns aren’t making a difference. The NZD cycle lows may be coming, according to the market sentiment. We’ll see.
Price activity looks pretty stable; the NZDUSD is now in a recognized uptrend channel.
“Back 0.5875/0.6000″ 0.6235, 0.6450, and 0.6575.”
AUD/USD: Attention is presently on 0.6775 – UOB
According to UOB Group economists Lee Sue Ann and Quek Ser Leang, the AUD/USD pair may short-term continue its climb to the 0.6775 level.
Although overbought, the rapid increase in AUD may continue. 24-hour perspective. But it’s doubtful that the significant barrier at 0.6775 will be broken today (another resistance at 0.6735). The downward movement would be signaled by a breach of 0.6635 (a minor support level at 0.6665).
A robust upward momentum followed the abrupt upward acceleration in the AUD last week. Next 1-3 weeks: Even if any growth is expected to be slower than usual, more AUD strength is probable. The value to watch is 0.6775. Support is located around 0.6635. However, AUD would only stop advancing if it broke through 0.6595. Up ahead, 0.6820 represents resistance over 0.6775.
Please click here for the Market News Updates from 11 November, 2022.