Morning Brief 13 Oct: Yen Bullish Amid Middle East Woes

DCFX · 13 Oct 2023 19.9K Views

US Consumer Prices Rise More Than Expected

The annual inflation rate in the US remained at 3.7% in September, above market expectations of 3.6%. Also, on the month, the CPI rose 0.4%, above estimates of 0.3%. Meanwhile, core CPI, which excludes volatile food and energy prices, slowed to 4.1%, the lowest since September 2021.



The euro bounced back to the $1.06 mark, moving further from a ten-month low of $1.0447 touched on Oct. 3, as investors digested dovish messages from policymakers at the Federal Reserve and European Central Bank. Fed officials suggested that rising long-term Treasury bond yields could steer the US central bank away from further interest rate hikes.

Trend   ↓

Support : 1.04950

Resistance : 1.05790


The British pound bounced back above the $1.22 threshold, recovering from a seven-month low of $1.2035 touched on Oct. 4, as dovish statements from top Federal Reserve officials weighed on the dollar. On Monday, these officials suggested that rising long-term US Treasury bond yields could dissuade the US central bank from pursuing further interest rate hikes.

Trend   ↑

Support : 1.21090

Resistance : 1.22390


The Australian dollar strengthened above $0.64, holding onto recent gains amid general greenback weakness, as a dovish statement from a Federal Reserve official lowered the odds of another US interest rate hike in November. The Aussie also reversed losses driven by risk-off trading following Hamas' surprise attack on Israel over the weekend.

Trend  ↓

Support : 0.62861

Resistance : 0.63743


The Japanese yen strengthened past 149 per dollar amid rising expectations that the Federal Reserve will not raise interest rates in November. Safe-haven demand also supported the currency following Hamas' surprise attack on Israel over the weekend. At home, Japan's former top currency diplomat Naoyuki Shinohara told Reuters the country would likely not seek to reverse the yen's downtrend with exchange rate intervention as the recent decline reflected economic fundamentals.

Trend  ↑

Support :  149.155

Resistance :   150.131


Gold survived around $ 1,870 per ounce on Wednesday, up about 2% so far this week, because investors continue to measure the prospects of monetary policy following the latest economic data and FOMC minutes. The metal was supported by dovish signals from the US Federal Reserve and lower Treasury yields, as wars in the Middle East increased demand for safe havens.

Trend  ↓

Support : 1845.5

Resistance : 1883.5

Crude Oil (WTI)

WTI crude oil futures fell nearly 3% to below $84 a barrel on Wednesday as fears of possible supply disruptions in the Middle East due to the Israel-Hamas war began to fade. Saudi Arabia also reiterated its support for OPEC+ efforts to balance oil markets and measures that could boost global growth.

Trend  ↓

Support : 81.65

Resistance :  86



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