Technical Analysis Of USD And Factors Affecting Global Markets

Off-Track USD

USD lost its track when even after building on some momentum by earning small gains. Currently, the USD Index is at no ease because it has edged down to the 107.50 level. On the other hand, US Treasury bond yields carry on their journey of edging down with a percentage of 3.8%.

Such is the situation with stocks in the US whose performance remained unaffected because of no sudden change in the market mood.

Investors Attentive To Global Central Banks’ Statements

European Commission is expected to release data for Eurozone pertaining to Consumer Confidence in November. While in the US, Manufacturing Index by Richmond Fed shall be featured and highlighted in US economic docket.

Consequently, investors would be glued to the future actions and statements to be taken/made by global central banks.

Growing Fear of Worldwide Economic Crisis

In the meantime, small benefits were derived from USD, particularly because markets were more concerned about news coming from China regarding Covid.

Since China has refused to cut down Covid related restrictions, hence, the fear of a worldwide economic crisis is growing amongst global investors.

Worst Market Conditions Ahead

A couple of days ago, China reported an increase of approximately 28,000 more Covid cases in Beijing alone. Considering this fact, it could easily be ascertained that market conditions will worsen further instead of improving.

Meanwhile, bears ambushed crude oil markets which resulted in extreme pressure, particularly during the US trading hours.

Saudi Arabia’s Impact on Crude Oil Markets

The pressure emerged when a news item suggesting Saudi Arabia boosting OPEC+ production was published in Wall Street Journal.

As a result of the news item, West Texas Intermediate’s (WTI’s) per barrel rates fell to their lowest in 2022 i.e. $75.25.

However, the authenticity of the news item was denied by Abdulaziz bin Salman Al-Saud, who is the Energy Minister of Saudi Arabia.

Saudi Energy Minister further clarified that the country’s executive and officials were not elaborating on boosting OPEC+ production.

In reaction thereto, the crude oil prices rebounded quickly, along with WTI, which started to trade at $80 per barrel.

EUR/USD Analysis

The pair is edging down after losing roughly 100 pips and has entered the consolidation phase at the 1.0250 level. Uncertainty in the European Central Bank with regard to increasing the rate hasn’t been clarified.

GBP/USD Analysis

After inflicting a value loss, GBP/USD value fell low at 1.1800, however, a little rebound was witnessed right before the end of the trading day.

Currently, the pair is trading at a price range of 1.1850, particularly during European trading hours.

USD/JPY Analysis

Ultimately, the USD/JPY pair succeeded in coming out of the status quo because of the bulls’ support. Currently, the pair has proceeded into the 142.00 area.

Yet the pair haven’t been able to come out of its consolidation phase but it is gradually moving in that direction.