GBPUSD fails to cheer upbeat UK jobs report, BOE’s move as risk aversion propels USD

The return of full markets fails to tame the risk-off mood as firmer yields join hawkish Fed bets amid recession woes. Adding to the sour sentiment are grim headlines from Kyiv and China’s determination to keep the zero-covid policy.

With this, the US dollar remains firmer and drowns the major currencies and commodities, as well as the Antipodeans. The same restricts the GBPUSD from cheering the surprise drop in the Unemployment Rate and the Bank of England’s (BOE) move to widen the range of target GILT operations.

USDJPY pokes the key 145.90 hurdle that pushed Japan towards intervention in the last month whereas the AUDUSD justifies its risk barometer status.

Further, prices of gold and crude approach the latest troughs but the EURUSD bucks the trend as it snaps a four-day downtrend around a one-week low.

Cryptocurrencies also remain on the back foot amid a firmer US dollar and fears surrounding the future regulatory environment.

Following are the latest moves of the key assets:

• Brent oil sellers attack $95.00 while extending the previous day’s pullback from a six-week high.
• Gold drops for the fifth consecutive day, down 0.25% around $1,665 as we write.
• USD Index prints five-day uptrend near 113.30 as bulls poke one-week top.
• FTSE and Eurostoxx are both down around 1.0% intraday whereas DAX falls 1.15% on a day at the latest.
• BTCUSD and ETHUSD both remain mildly offered near $19,000 and $1,280 at the latest.

Risk-off is all around…

Be it the odds that the Fed may ignore economic slowdown fears to offer another 75 bps rate hike in November or the energy crisis in the Eurozone, not to forget the Sino-American tussles, everything propels the rush to risk safety. As a result, the US dollar enjoys its status as a traditional haven and drowns the prices of commodities and the major currencies. However, EURUSD managed to steal the show with the recent rebound as European markets open. The reason could be linked to a slight moderation in the yields and the money markets’ wagers on the Fed’s next move.

Elsewhere, the UK’s softer Unemployment Rate failed to please the GBPUSD buyers as the BOE hints at the grim financial conditions while announcing extra measures to ease the gilt operations. On the same line was the firmer Claimant Count Change.

It should be noted that the early Asian session’s hawkish comments from RBNZ Governor Adrian Orr also challenge the NZDUSD bears while the AUDUSD remains pressured amid downbeat Aussie data and risk profile.

On a different page, news surrounding Bitcoin’s visa debit card and Logan Paul’s “Bumblebee” NFT failed to impress crypto buyers amid a broad risk-off mood.

⏫ 🟢 Strong buy: USDJPY

⏬ 🔴 Strong sell: ETHUSD

⬆️ 🟢 Buy: USD Index, USDCAD, Nasdaq, EURUSD

⬇️ 🔴 Sell: DAX, FTSE 100, gold, BTCUSD, AUDUSD

Central bankers are in focus

Multiple central bank officials from the BOE, Fed and SNB are up for speaking late Tuesday and could offer additional directions to the market players. However, chances are mild that they can change the current trend favoring the market’s love for the US dollar ahead of this week’s FOMC Minutes and US CPI.

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