2023-05-11 09:23

Market Update - 11 May 2023 EUR/USD prints monthly lows in the 1.0925/20 band. The US Dollar extends the weekly recovery to multi-day highs. Markets’ attention will be on US Producer Prices, weekly claims. The selling pressure around the European currency gathers further steam and drags EUR/USD to 3-week lows near 1.0920 on Thursday. (FXStreet) USD/CAD regains positive traction on Thursday amid the emergence of some USD buying. Bets for an imminent pause in the Fed’s rate-hiking cycle could cap the upside for the buck. An uptick in Oil prices might further contribute to keeping a lid on further gains for the pair. (FXStreet) USD/JPY bounces off weekly low to pare intraday losses, portrays two-day downtrend. Convergence of 200-EMA, short-term support lines highlights 133.90 as the key support. Yen pair’s recovery remains elusive below 135.40 hurdle. (FXStreet) The index resumes the upside following Wednesday’s drop. Bets on a Fed’s pause in June continue to rise. Producer Prices, weekly Initial Claims next on tap in the docket. The greenback, in terms of the USD Index (DXY), picks up mild upside traction and revisits the 101.50 region on Thursday. (FXStreet) GBP/USD remains indecisive as the key Bank of England (BoE) monetary policy decision looms. Quarterly BoE report will be watched closely as inflation pressures British policymakers to stays hawkish despite economic woes. Terminal Rate, growth/inflation forecasts appear critical as BoE’s 0.25% rate hike seems already priced in. US PPI, risk catalysts also become important as Cable pair prods 13-month high. (FXStreet) USD/CHF picks up bids to prod the top line of a bullish chart formation. Upbeat RSI, clear bounce off 0.8870 double-bottom keeps USD/CHF buyers hopeful. Sellers need validation from 0.8880, buyers may aim for 0.8950 on confirming bullish triangle breakout. (FXStreet) USD/INR picks up bids to pare the previous day’s pullback from thee-week high. US Dollar pares post-inflation losses as traders seek more details to confirm dovish Fed bias. Cautious optimism in the markets, firmer Oil price and hopes of no imminent RBI rate hike weigh on Indian Rupee. US PPI, India inflation numbers eyed for clear directions. (FXStreet) AUD/USD lacks any firm intraday direction and oscillates in a range on Thursday. Mixed Chinese inflation data is seen capping gains amid a modest USD strength. Bulls still need to wait for a move beyond the 100 DMA before placing fresh bets. (FXStreet) Wednesday’s corrective pullback in prices of the WTI came in tandem with shrinking open interest, suggesting that a sustained retracement appears not favoured for the time being. Against that, the weekly recovery could have further legs to go and is expected to meet initial hurdle at the $74.00 mark per barrel. (FXStreet) Prices of natural gas retreated modestly on Wednesday amidst the uptick in open interest and volume. Against that, another decline remains on the cards in the very near term, although a deeper pullback is expected to meet a formidable barrier around the $2.00 mark per MMBtu. (FXStreet) Gold price edges lower for the second successive day, albeit lacks follow-through. A goodish pickup in the US Dollar demand exerts some pressure on the XAU/USD. The fundamental backdrop warrants caution before positioning for deeper losses. (FXStreet) Silver price stays pressured as bears attack 21-DMA, two-month-old ascending support line. Bearish MACD signals, RSI’s retreat from overbought territory suggests further downside. Multiple levels marked since early 2023 highlight $24.60-50 as crucial downside support for XAG/USD. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-05-10 09:54

Market Update - 10 May 2023 EUR/USD trades without clear direction near 1.0960. Final CPI in Germany rose 7.2 YoY, 0.4% MoM in April. US inflation figures will be in the limelight later in the session. The European currency keeps the prudent stance well in place and motivates EUR/USD to gyrate around the 1.0960 region on Wednesday. EUR/GBP bounces off a multi-month low touched on Wednesday, though lacks follow-through. The mixed comments by ECB policymakers fail to impress the Euro bulls or provide any impetus. Traders also seem reluctant to place fresh directional bets ahead of the BoE meeting on Thursday. USD/JPY gains traction for the fourth straight day and touches a one-week top. Dovish remains by the BoJ Governor Ueda weigh on the JPY and lend support. A modest USD downtick acts as a headwind ahead of the crucial US CPI report. USD/CAD is aiming to recapture the round-level resistance of 1.3400 as oil corrects and the USD Index has rebounded. A bipartisan agreement is anticipated from US debt ceiling talks as a delay in the debt ceiling raise is not an option. An expression of consistently increasing inflation could compel the Federal Reserve to reconsider its neutral tone conveyed in the prior policy meeting. Oil prices are struggling to stretch recovery as investors are worried that persistence in the US inflation would deepen fears of recession. The index hovers around 101.60 amidst a tight range. US yields trade without direction ahead of key data. US inflation figures will take centre stage later in the NA session. The USD Index (DXY), which tracks the Greenback vs. a bundle of its main rivals, navigates without a clear direction around the 101.60 area on Wednesday. GBP/USD struggles to justify the previous day’s bullish Doji candlestick formation. Bearish RSI divergence, nearly overbought positioning prod Cable buyers ahead of the key US CPI for April. Buyers remain hopeful unless witnessing clear break of 1.2500 support confluence. USD/CHF rebounds from intraday low but stays mildly offered amid pre-data inaction. Market sentiment remains fragile amid mixed concerns about US debt ceiling woes. Cautious mood ahead of data allows Swiss Franc (CHF) pair to edge lower. Positive surprise from US CPI for April can add to US Dollar’s strength. NZD/USD regains positive traction on Wednesday, albeit lacks follow-through buying. The cautious market mood lends some support to the USD and acts as a headwind. The downside seems cushioned as traders seem reluctant ahead of the key US CPI. USD/INR reverses from 13-day high to pare the first weekly gains in three. US Dollar snaps two-day rebound amid mixed concerns about debt ceiling expiration, banking woes. Cautious optimism, hopes of easing inflation pressure favor Indian Rupee buyers. AUD/USD turns lower for the second successive day, albeit lacks follow-through selling. A softer risk tone lends some support to the USD and weighs on the risk-sensitive Aussie. The downside remains cushioned as traders keenly await the release of the crucial US CPI. Tuesday’s inconclusive price action in natural gas prices came along rising open interest and volume, which leaves practically unchanged the consolidation theme within $2.00-$2.50 per MMBtu in place since late March. Gold price has slipped back to near $2,030.00 as investors have shifted their focus back to US inflation. US CPI has regained the spotlight as US debt ceiling negotiations have adjourned till Friday. No raise in the debt ceiling is not an option as it would result in a default of obligated payments. Silver price portrays pre-data anxiety inside weekly symmetrical triangle, 100-SMA, 200-SMA adds strength to the breakout points. Steady RSI suggests further grinding of XAG/USD price, highlighting the importance of US CPI for April. Multiple trading filters stand tall to challenge commodity prices while buyers keep the reins. Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-05-09 09:50

Market Update - 09 May 2023 USD/JPY edges lower on Tuesday in reaction to BoJ Governor Ueda’s hawkish remarks. A modest USD strength lends some support to the major and helps limit the downside. Traders also seem reluctant to place aggressive bets ahead of the US CPI on Wednesday. (FXStreet) Further selling bias forces EUR/USD to breach 1.1000. The greenback appears supported by rising risk-off mood. ECB’s Kazaks, Kazimir favoured extra rate raises in the next months. Sellers remain in control of the sentiment in the risk complex and force EUR/USD to retreat further south of the 1.1000 support on turnaround Tuesday. (FXStreet) GBP/USD picks up bids to reverse the previous day’s pullback from the highest levels since April 2022. UK inflation woes, Brexit optimism supersede Britain’s political disappointment to allow Cable buyers to retake control. US Dollar fails to cheer upbeat yields amid debt-ceiling woes, banking turmoil. White House talks on US debt ceiling expiration will be the key ahead of US, UK data, BoE. (FXStreet) USD/CHF stays pressured after reversing from one-week high the previous day. Failure to cross 100-EMA, easing bullish bias of MACD lures Swiss Franc buyers inside bearish megaphone formation. Two-month-old previous resistance line lures intraday sellers; bulls need 200-EMA breakout to convince markets. (FXStreet) The index adds to Monday’s gains and approaches 101.50. Fed’s report warned that an economic slowdown is not ruled out. NFIB Index, IBD/TIPP Index, Fedspeak next on tap in the docket. The greenback, in terms of the USD Index (DXY), extends the optimism seen at the beginning of the week and revisits the 101.50 region on Tuesday. (FXStreet) USD/CAD fades bounce off three-week low amid sluggish markets. US Dollar struggles to defend recent gains, Oil price remains sidelined. Mixed sentiment about US debt-ceiling accord, banking turmoil prod Loonie pair traders. (FXStreet) NZD/USD pulls back from over a one-month high touched on Monday, though lacks follow-through. The overnight rise in the US bond yields underpins the USD and acts as a headwind for the major. The Fed’s less hawkish outlook could cap the USD and lend support to the pair ahead of the US CPI. (FXStreet) USD/MXN struggles to defend the previous day’s rebound from the lowest levels since September 2017. Cautious markets ahead of the key debt-ceiling talks, US and Mexican inflation prod pair buyers. Fears of US, unimpressive Fed bank survey keeps Mexican Peso bulls hopeful. (FXStreet) USD/INR has added significant gains amid a strong recovery in the USD Index ahead of US inflation. The Fed is expected to keep interest rates higher for a longer period to continue to weigh on stubborn US inflation. USD/INR has attempted a confident breakout of the consolidation formed in an 81.64-81.95 range. (FXStreet) Prices of the barrel of the WTI rose for the third session in a row at the beginning of the week. The daily uptick, however, was amidst dwindling open interest and volume and hints at the idea that the continuation of the upside might face some headwinds in the very near term. So far, there are provisional barriers at the 55- and 100-day SMAs at $75.43 and $76.54, respectively. (FXStreet) The auspicious start of the week of natural gas prices came amidst shrinking open interest and increasing volume, which is suggestive that the current multi-week consolidative theme has still further legs to go. In the meantime, solid contention remains around the $2.00 mark per MMBtu. (FXStreet) Gold price gains some positive traction for the second straight session, though lacks follow-through. A modest US Dollar strength, along with easing fears of a full-blown banking crisis, act as a headwind. The Federal Reserve’s less hawkish outlook to limit the downside ahead of the US CPI on Wednesday. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-05-08 09:55

Market Update - 08 May 2023 EUR/GBP struggles to capitalize on its modest intraday recovery from a fresh YTD low. The disappointing Eurozone data acts as a headwind for the Euro and caps the cross. Hawkish BoE expectations continue to underpin the GBP and warrant caution for bulls. (FXStreet) USD/JPY gains positive traction for the second straight day, albeit lacks bullish conviction. A combination of factors undermines the safe-haven JPY and acts as a tailwind for the pair. Dovish Fed expectations weigh on the USD and keep a lid on any further appreciating move. (FXStreet) EUR/USD adds to Friday’s gains well north of 1.1000. Industrial Production in Germany contracts more than expected. Fed-ECB policy divergence takes centre stage. (FXStreet) The index losses further ground and puts 101.00 to the test. Markets continue to digest Friday’s solid NFP figures. Wholesale Inventories next on tap in the docket. The greenback remains on the downside and confronts the 101.00 region when measured by the USD Index (DXY) at the beginning of the week. (FXStreet) GBP/USD has printed a fresh weekly high at 1.2653 amid a sell-off in the USD Index.Unimpressive US Employment has cemented a neutral Federal Reserve policy for the June meeting. UK’s historically high food inflation and labor shortages are supporting one more interest rate hike from the Bank of England. GBP/USD is enjoying a rally after a breakout of the Rising Channel chart pattern. (FXStreet) USD/CAD remains depressed at multi-day low after falling the most since January. Comparatively strong Canadian jobs report, Oil price recovery favor Loonie pair buyers.NFP fails to underpin US Dollar rebound as traders seek more clues from US inflation. Canada geopolitics, US CPI eyed for clear directions. (FXStreet) USD/CNH remains sidelined between 200-SMA and 50-SMA, portrays bullish megaphone trend-widening formation. Bullish MACD signals, sustained trading above 200-SMA keep offshore Chinese Yuan sellers hopeful. USD/CNH bears need validation from 6.8500 to retake control. (FXStreet) AUD/USD renews three-week high inside two-month-old ascending trend channel. Bullish MACD signals, upbeat RSI keeps buyers hopeful of crossing 100-DMA hurdle. Sellers remain off the table unless witnessing daily close beyond 0.6600. (FXStreet) NZD/USD gains traction for the fifth straight day and climbs to over a one-month high. The prevalent USD selling bias, along with a positive risk tone, continues to lend support. The fundamental backdrop favour of bullish traders ahead of the US CPI on Wednesday. (FXStreet) USD/INR is gyrating in a range of 81.64-81.95 from the past week. The upside is capped due to a sell-off in the USD Index while the downside is being supported by rising oil prices. Investors expect that the majority of central banks have reached threshold levels and the worst is getting over. (FXStreet) Prices of the barrel of the WTI picked up pace at the end of last week amidst rising open interest, which is indicative than extra recovery appears on the cards in the very near term. So far, the commodity seems well supported around the $68.00 region. (FXStreet) Prices of the natural gas bounced off lows near the $2.00 mark per MMBtu against the backdrop of increasing open interest and volume on Friday. That said, further gains now emerge on the horizon in the very near term and are expected to meet interim resistance at the 55-day SMA near $2.32. (FXStreet) Friday’s marked pullback in gold prices was on the back of shrinking open interest and volume, leaving no room for the continuation of the decline in the very near term. That said, the precious metal continues to target the 2023 high at $2067 per ounce troy (May 4), just ahead of the all-time peak at $2075 (August 7 2020). (FXStreet) Silver oscillates in a narrow trading band through the first half of trading on Monday. The technical setup favours bullish traders and supports prospects for further gains. A convincing break below the $24.50-40 area is needed to negate the positive bias. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-05-05 09:43

Market Update - 05 May 2023 The EUR/USD pair has recovered firmly above 1.1040 in the Asian session as the US Dollar index (DXY) has resumed its downside journey. The major currency pair is trying to revive Thursday’s sell-off inspired by a smaller interest rate hike from the European Central Bank (ECB). (FXStreet) USD/JPY drops for the fourth consecutive day as bears approach the weekly low during early Friday, down 0.30% intraday near 133.85 by the press time. In doing so, the Yen pair renews its intraday bottom as it cheers the US Dollar weakness ahead of the key US employment report for April. It’s worth noting that Japan’s holidays fail to challenge the sellers. (FXStreet) GBP/USD has confidently climbed above the round-level resistance of 1.2600 in the early European session. The Cable has refreshed its 11-month high at 1.2614 and might discover more gains as the US Dollar Index (DXY) is expected to display more downside amid multiple headwinds. (FXStreet) The AUD/USD pair climbs to a two-week high on Friday, albeit struggles to capitalize on the momentum beyond a technically significant 200-day Simple Moving Average (SMA). The pair, however, maintains its bid tone through the early European session and trades around the 0.6725-0.6730 region, still up over 0.50% for the day. (FXStreet) The USD/CAD pair remains under some selling pressure for the third successive day on Friday and extends its steady descent through the first half of the European session. The downward trajectory drags spot prices below a technically significant 100-day Simple Moving Average (SMA) and the 1.3500 psychological mark, to a two-week low in the last hour. (FXStreet) The USD/CHF pair attracts some dip-buying near the 0.8835 region on Friday and turns positive for the second successive day, though lacks bullish conviction. The pair trades just above mid-0.8800s during the early European session and so far, is seen struggling to capitalize on the overnight bounce from its lowest level since January 2021. (FXStreet) NZD/USD stays on the front foot at the highest levels in a month, up half a percent near 0.6310 heading into Friday’s European session. In doing so, the Kiwi pair cheers broad-based US Dollar weakness ahead of the US Nonfarm Payrolls (NFP) data. Adding strength to the bullish bias could be the latest divergence between the Federal Reserve (Fed) and the Reserve Bank of New Zealand (RBNZ) bias. (FXStreet) USD/INR holds lower grounds near 81.70 as it prods weekly low during a three-day downtrend. In doing so, the Indian Rupee (INR) pair cheers broad US Dollar weakness ahead of the key US Nonfarm Payrolls (NFP). (FXStreet) USD/IDR justifies upbeat prints of Indonesia's growth numbers by retreating to 14,680 during early Friday. In doing so, the Indonesia Rupiah (IDR) pair also benefits from the broad US Dollar weakness and cautious optimism in the Asia-Pacific region. (FXStreet) The USD/CNH pair has shown a recovery move from 6.9100 amid the release of the downbeat Caixin Services PMI data (April). The economic data has landed at 56.4, marginally lower than the estimates of 56.5 and the former release of 57.8. (FXStreet) AUD/JPY pierces the 90.00 psychological magnet as it stretched the previous day’s rebound from a one-week low after upbeat outcomes from Australia and China during early Friday. Adding strength to the risk-barometer pair’s recovery moves could be the mildly positive sentiment in the market ahead of the US and Canada jobs report. However, holidays in Japan restrict the cross-currency pair’s immediate moves. (FXStreet) The EUR/JPY pair is struggling in extending its recovery above the immediate resistance of 148.00 in the Asian session. The cross is experiencing pressure as investors are awaiting the release of Eurozone Retail Sales data (April). (FXStreet) Natural Gas Price (XNG/USD) remains depressed around $2.17, printing a five-day downtrend near the lowest levels in three weeks, as market players await the key US employment report on Friday. In doing so, the energy instrument bears the burden of the fears of oversupply, as well as recession. (FXStreet) Gold price (XAU/USD) eases after refreshing the highest level on record as bulls take a breather ahead of the key US Nonfarm Payrolls (NFP). (FXStreet) Silver enters a bullish consolidation phase and oscillates in a narrow trading band around the $26.00 round-figure mark, just below its highest level since April 2022 touched earlier this Friday. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-05-03 10:04

EUR/USD cheers broad US Dollar weakness as it prepares for the key Federal Open Market Committee (FOMC) monetary policy meeting announcements early Wednesday, picking up bids to refresh intraday high near 1.1025 by the press time. (FXStreet) GBP/USD recently gave a break above the sideways consolidation during December and March affirming extension in bounce. Gradual up move should persist, in the view of economists at Société Générale. (FXStreet) The USD/CHF pair extends the overnight downfall from the vicinity of the 0.9000 psychological mark, or a nearly two-week high and remains under heavy selling pressure for the second successive day on Wednesday. The downward trajectory remains uninterrupted through the first half of the European session and drags spot prices to a one-week low, around the 0.8875 region in the last hour. (FXStreet) The USD/JPY pair extends the previous day's sharp retracement slide from the 137.75-137.80 region, or a nearly two-month high and remains under heavy selling pressure for the second successive day on Wednesday. The downfall remains uninterrupted through the early European session and drags spot prices below the 136.00 mark, or a fresh weekly low in the last hour. (FXStreet) The AUD/USD pair struggles to gain any meaningful traction on Wednesday and seesaws between tepid gains/minor losses, just above mid-0.6600s through the early part of the European session. (FXStreet) The NZD/USD pair has sensed selling pressure after a rally to near 0.6250 in the Asian session. The Kiwi asset is expected to continue its upside journey as the US Dollar Index (DXY) is under immense pressure amid expectations that higher interest rates by the Federal Reserve (Fed) were the major reason behind the United States banking fiasco. (FXStreet) The USD/CAD pair is displaying a sideways performance around 1.3620 in the Tokyo session. The Loonie asset displayed a perpendicular rally after defending the crucial support of 1.3540 as oil prices nosedived amid deepening fears of a recession in the United States. (FXStreet) The continuation of the upside in USD/CNH remains in the pipeline for the time being, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group. (FXStreet) The USD/INR pair has rebounded after dropping to near 81.70 in the Asian session. The major has defended its downside despite weakness in the US Dollar Index (DXY) amid debt ceiling woes and a bloodbath in the oil price. (FXStreet) AUD/NZD takes offers to refresh the intraday low near 1.0690 during early Wednesday. In doing so, the exotic pair ignores upbeat Australia Retail Sales as sellers cheer firmer prints of New Zealand employment numbers for the first quarter (Q1) of 2023. (FXStreet) AUD/JPY remains depressed around 90.85, keeping the previous day’s losses near the highest levels in 2.5 months, even as Australia’s Retail Sales for March manage to print upbeat figures for March early Wednesday. In doing so, the quote portrays a cautious mood ahead of the top-tier data/events. Also challenging the cross-currency pair are the holidays in China and Japan, as well as fears emanating from baking sector fallouts and hawkish central bank bias, backed by the latest surprise from the Reserve Bank of Australia (RBA). (FXStreet) The EUR/GBP pair is aiming to capture the critical resistance of 0.8840 as the cross has confidently established above the round-level resistance of 0.8800 in the Asian session. The cross has attracted significant bids as stubborn Eurozone inflation is supporting a continuation of bumper interest rate hikes from the European Central Bank (ECB). (FXStreet) WTI crude oil stays depressed at the lowest levels since late March, poked the previous day, as energy bearish make rounds to $71.50 during early Wednesday in Europe. In doing so, the black gold price takes clues from the dicey markets ahead of the Federal Open Market Committee (FOMC) monetary policy meeting announcements. (FXStreet) Gold price (XAU/USD) is gathering strength for a breakout above the immediate resistance of $2,020.00 in the Asian session. The precious metal has shifted into a bullish trajectory as concerns for the United States are mounting. After the headlines from US Treasury Secretary Janet Yellen that the Treasury will run out of funds in early June if the administration fails to raise the debt ceiling and will face problems in making payments. (FXStreet) Silver struggles to capitalize on the previous day's solid bounce from the vicinity of the $24.50-$24.40 strong horizontal support and edges lower during the first half of trading on Wednesday. The white metal sticks to a mildly negative tone and remains below mid-$25.00s through the early European session, though the downside potential seems limited. (FXStreet) Natural Gas (XNG/USD) price seesaws around the intraday high of $2.32 as bulls await fresh clues to extend the previous day’s rebound from a 12-day low. In doing so, the energy instrument traces the broad market anxiety ahead of the key Federal Open Market Committee (FOMC) monetary policy meeting announcements early Wednesday. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.