2023-02-20 09:54

Market Update - 17 February 2023 There is room for the USD rebound to extend further. Therefore, economists at MUFG Bank expect the EUR/USD pair to challenge the 200-Day Moving Average (DMA) at around 1.0330. (FXStreet) USD/JPY gained nearly 300 pips last week. On Friday, BoJ Governor nominee Ueda speaks. Hints of change to the BoJ's ultra-dovish monetary policy could pummel the USD/JPY pair, economists at ING report. (FXStreet) The GBP/USD pair has printed a fresh day high at 1.2045 in the early London session. The Cable is looking to extend its gains to 1.2050 as the risk-off impulse has faded away despite no negative development on the US-China tensions and three missiles launched by North Korea near Japan’s region. The US Dollar Index (DXY) has refreshed its day low at 103.52 as investors ignored the fears of persistent inflation and a robust labor market in the United States. S&P500 futures have recovered their entire losses and are looking to shift into a positive trajectory amid the risk appetite theme. (FXStreet) The AUD/USD pair builds on Friday's goodish rebound from the vicinity of the 0.6800 mark, or its lowest level since January 6, and gains strong follow-through traction on the first day of a new week. The pair maintains its bid tone through the early part of the European session and is currently placed around the 0.6900 mark, just a few pips below the daily high. (FXStreet) USD/CAD bulls take a breather around 1.3480, following the run-up to refresh the monthly high, as the upside momentum failed to cross the key resistance confluence the previous day. Even so, the Loonie pair remains on the buyer’s radar on early Monday as it defends the previous week’s upside break of the 50-DMA, close to 1.3465 at the latest. It’s worth mentioning that the 50-DMA breakout joins the bullish MACD signals, as well as the upbeat RSI (14), not overbought, to keep the USD/CAD buyers hopeful. (FXStreet) USD/CHF flirts with the intraday low surrounding 0.9240 amid early Monday in Europe. In doing so, the major currency pair remains pressured toward the previous resistance line from late November 2022. However, a light calendar and holiday in the US, as well as in Canada, restrict immediate moves of the Swiss Franc (CHF) pair. (FXStreet) EUR/GBP holds lower ground near 0.8880 during the early Monday morning in Europe. In doing so, the cross-currency pair fades bounce off the 200-HMA and eight-day-old horizontal support. Also teasing the pair sellers is the lower high formation, marked since February 07. However, the aforementioned support line, close to 0.8875 at the latest, precedes the 200-Hour Moving Average (HMA) level surrounding 0.8865, to put a floor under the EUR/GBP prices. (FXStreet) NZD/USD seesaws around 0.6240 as it struggles to push back the bearish bias after a four-day losing streak, keeping the bounce off a six-week low during early Monday morning in Europe. In doing so, the Kiwi pair portrays the traders’ cautious mood ahead of the key Reserve Bank of New Zealand (RBNZ) monetary policy meeting and the Minutes of the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting. (FXStreet) USD/MXN remains pressured around the lowest level in nearly five years as it drops to $18.33 during early Monday, keeping Friday’s fall to the multi-day bottom during a three-day downtrend. In doing so, the Mexican Peso (MXN) pair cheers the retreat in the US Dollar amid a light calendar and the US holidays. Adding strength to the lackluster moves could be the cautious mood ahead of this week’s top-tier data from the US and Mexico, as well as mixed headlines surrounding the geopolitical risks emanating from Russia, China and North Korea. (FXStreet) USD/INR takes offers to refresh intraday low near 82.65 during the initial Indian trading session on Monday. In doing so, the Indian Rupee (INR) pair justifies the early day’s downside break of a one-month-old ascending trend line to print the first daily loss after witnessing four consecutive weeks of a run-up. (FXStreet) GBP/JPY grinds higher around 161.60 during early Monday, struggles to extend intraday gains amid dicey markets. In addition to the sluggish sentiment, geopolitical fears emanating from China and North Korea, as well as Brexit woes, also probe the cross-currency buyers. Even so, upbeat US Treasury bond yields and easing hawkish bias about the Bank of Japan (BoJ) seem to put a floor under the Yen price. (FXStreet) EUR/JPY was driven out of the bull trend last week but failed to break any significant structure to the downside so has moved sideways above the 142.80s, trapping both shorts and longs in the process. This trapped volume has the potential to result in a breakout one way or the other week. (FXStreet) The AUD/JPY pair has picked strength after a weak open around 92.10 in the Tokyo session. The risk barometer has recovered to near 92.30 and is looking to extend its rebound move ahead. However, the risk profile seems not to support the risk-perceived assets after the US ambassador to the United Nations, Ambassador Linda Thomas-Greenfield, said Sunday that China would cross a “red line” if the country decided to provide lethal military aid to Russia for its invasion of Ukraine. (FXStreet) WTI prices extended the leg lower for yet another session on Friday. The daily decline, however, was in tandem with declining open interest, which hints at the view that probable rebound could be in the offing. The next target of note on the upside emerges at the February high at $80.57 (February 13). (FXStreet) Gold price edges higher on the first day of a new week and looks to build on Friday's bounce from the $1,819-$1,818 area, or the YTD low. The XAU/USD sticks to its modest intraday gains through the early European session and is currently placed just above the $1,845 region, albeit seems to lack bullish conviction. (FXStreet) Silver price (XAG/USD) has delivered a vertical fall to near $21.55 in the Tokyo session. The white metal tumbled like a house of cards as the escalating geopolitical tensions strengthened the risk aversion theme. Silver price is expected to continue its downside momentum as the fears of a recovery in the United States inflation have joined the US-China tensions. (FXStreet) Subdued upward momentum associated with the recent jump suggests Bitcoin’s rally is showing some signs of fatigue as it tests a tough hurdle. BTC/USD hit an eight-month high on Thursday and is now testing a crucial ceiling at the August 2022 high of 25200, near the 200-week moving average (now at about 24925). BTC/USD needs to clear the 24650-25200 area for the medium-term downward pressure to ease. (DailyFX) Source: FXStreet, DailyFX 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.

2023-02-17 09:43

Market Update - 17 February 2023 GBP/USD continues losing round for the third straight day and slides below the 200-day SMA. Expectations that the BoE’s rate-hiking cycle is nearing the end continue to weigh on the GBP. Bets for additional rate hikes by the Fed boost the USD and contribute to the ongoing decline. (FXStreet) EUR/USD drops to multi-week lows in the 1.0630/25 band. The dollar remains strong well north of the 104.00 barrier. CB Leading Index and Fed’s Barking come next in the US docket. The bearish sentiment remains well and sound around the European currency and motivates EUR/USD to slip back to the 1.0630 region for the first time since early January. (FXStreet) USD/JPY catches fresh bids on Friday and challenges the YTD top amid sustained USD buying. Hawkish Fed expectations push the US bond yields higher and continue to underpin the buck. Recession fears, hopes for a hawkish BoJ shift could benefit the JPY and cap any further gains. (FXStreet) USD/CAD spikes to its highest level since January and is supported by a combination of factors. Declining Oil prices undermines the Loonie and acts as a tailwind amid sustained USD buying. A sustained move beyond the 1.3500 mark might have already set the stage for further gains. (FXStreet) NZD/USD stays on the back foot and declines toward 0.6200 on Friday. New Zealand Financial Minister Robertson said earlier in the day there was evidence that inflation has peaked. (FXStreet) AUD/USD remains under some selling pressure for the third successive day on Friday. Hawkish Fed expectations, recession fears underpin the buck and weigh on the major. Technical selling below the 50-day SMA further contributes to the ongoing downfall. (FXStreet) GBP/JPY regains positive traction on Friday and snaps a two-day losing streak. The uncertainty over the BoJ’s policy path weighs on the JPY and lends support. Speculations that the BoE’s rate hiking cycle is nearing the end caps the upside. (FXStreet) EUR/GBP gains positive traction for the third straight day and climbs to over a one-week high. The upbeat UK Retail Sales for January fail to impress the GBP bulls or provide any impetus. Bets for additional jumbo rate hikes by the ECB support prospects for further near-term gains. (FXStreet) USD/INR clings to mild gains during the first positive daily performance in three. Upbeat US data, hawkish Fed talks propel Treasury bond yields and the US Dollar. Sluggish Oil price, mixed sentiment in Asia fail to help Indian Rupee in extending previous gains. Light calendar ahead of next week’s FOMC Minutes can keep buyers hopeful. (FXStreet) The index extends the advance past the 104.00 barrier. US yields climb to fresh highs following data, hawkish Fedspeak. Fed’s Barkin, CB Leading Index next on tap in the docket. The greenback pushes higher and prints fresh 6-week tops north of the 104.00 hurdle when gauged by the USD Index (DXY) at the end of the week. (FXStreet) Although XAU/USD managed to close flat on Thursday, it came in under renewed bearish pressure amid rising US T-bond yields early Friday. Gold price was last seen losing more than 0.5% on the day at $1,825. (FXStreet) Silver price refreshes 11-week low during five-day losing streak. 100-DMA breakdown, bearish MACD signals favor sellers around multi-day low. Oversold RSI hints at corrective bounce, highlights 200-DMA, $20.00 as key supports. Silver price (XAG/USD) holds lower ground at the 2.5-month bottom surrounding $21.45 amid the early hours of Friday morning in Europe. (FXStreet) Natural Gas: Extra losses target the $2.00 mark. Prices of natural gas accelerated the decline on Thursday amidst rising open interest, which leaves the door open to the continuation of this trend for the time being. A test of the key $2.00 mark per MMBtu seems more an issue of‘when’ rather than ‘if’. (FXStreet) WTI picks up bids to snap four-day downtrend, stays within one-week-old symmetrical triangle. 50-SMA, bearish MACD signals probe buyers, steady RSI line suggests further grinding of Oil price. Weekly high near $80.75 appers the last defense of Oil sellers. (FXStreet) Standard Chartered Plc’s chief executive officer said capital inflows into Hong Kong and China means the Hong Kong dollar peg is “extremely well supported.” “Money has flooded into Hong Kong to reengage with the Hong Kong and Chinese equity markets,” Bill Winters said on an earnings call Thursday. “We see no risk to the peg. We see no inclination to adjust the peg or to allow any variation around the peg.” (Bloomberg) Bitcoin advanced above $25,000 for the first time since August on Thursday but made a sharp U-turn during the American trading hours to post a daily loss of nearly 4%. BTC/USD was last seen moving up and down in a narrow channel above $23,500. Ethereum failed to build on Wednesday's impressive gains on Thursday and closed below $1,700. In the early European morning, ETH/USD is up nearly 1% at around $1,650. (FXStreet) Source: FXStreet, Bloomberg 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.

2023-02-16 09:51

Market Update - 16 February 2023 EUR/USD resumes the upside and retakes 1.0700 and above. ECB speakers will take centre stage later in the session. Producer Prices and the Philly Fed index take centre stage in the US docket. The single currency manages to shrug off part of Wednesday’s pullback and encourages EUR/USD to reclaim the area above the 1.0700 barrier on Thursday. (FXStreet) USD/JPY edges lower on Thursday and snaps a three-day winning streak to a multi-week high. Retreating US bond yields undermines the Greenback and exerts some pressure on the major. Hawkish Fed expectations should limit the USD decline and lend support ahead of the US data. (FXStreet) GBP/USD suffered heavy losses following the soft UK inflation data on Wednesday but managed to hold above the key 1.2000 level. The pair consolidates its losses slightly below 1.2050 in the European morning. (FXStreet) NZD/USD stages an intraday recovery from mid-0.6200s amid a modest USD downtick. A positive risk tone undermines the safe-haven buck and benefits the risk-sensitive Kiwi. Hawkish Fed expectations should limit the USD losses and cap the upside for the major. (FXStreet) USD/CAD meets with some supply and extends the overnight pullback from the weekly high. An uptick in oil prices underpins the Loonie and exerts pressure amid modest USD weakness. Hawkish Fed expectations should help limit deeper USD losses and lend support to the major. (FXStreet) AUD/USD, down nearly 4% since the start of this month, has been guided by the relative underperformance of the Australian economy, as reflected in the Economic Surprise Indices (ESI). The Australian ESI is languishing around the 2020 lows, while its US counterpart is at the highest level in 10 months. The better-than-expected US data recently have translated into a marginal upgrade in consensus US economic growth expectations for 2023. In contrast, Australia's economic growth outlook for the current year is yet to see any upgrades. (DailyFX) USD/CHF clings to mild losses while snapping two-day winning streak. Retreat in US Treasury bond yields, DXY joins failure to cross six-week-old resistance to trigger pullback moves. China, US debt-ceiling talks seem underpinning cautious optimism but hawkish Fed bets keep buyers hopeful. (FXStreet) GBP/JPY edges lower for the second straight day, though lacks follow-through selling. Recession fears, expectations for a hawkish BoJ shift underpin the JPY and caps gains. Bets that the BoE’s current rate-hiking cycle is nearing the end favour bearish traders. (FXStreet) USD/INR extends pullback from four-month-old resistance line amid sluggish markets. US Dollar pares gains around six-week high as Treasury bond yields retreat. China-linked headlines also weigh on prices amid cautious optimism in Asia. (FXStreet) Gold price edges higher on Thursday and draws support from a modest US Dollar weakness. Recession fears lend additional support to the XAU/USD, though the upside seems limited. Expectations for more rate hikes by Federal Reserve should act as a headwind for Gold price. (FXStreet) WTI picks up bids to rebound from weekly low, snaps three-day downtrend. US Dollar pullback, hopes of more demand from China supersede bearish EIA Oil inventories. Fears of more Fed rate hikes, US SPR releases challenge energy bulls. (FXStreet) Silver price bounces off 10-week low to snap three-day downtrend. Cautious optimism, pullback in yields underpin US Dollar’s retreat from multi-day high and favor XAG/USD buyers. China, second-tier US data may entertain Silver traders ahead of next week’s FOMC Minutes. (FXStreet) Natural Gas remains side-lined around $2.50. Wednesday’s downtick in prices of the natural gas was amidst rinsing open interest, which supports the view that extra losses remain on the cards for the time being. So far, the commodity is expected to maintain the current range bound theme around the $2.50 region per MMBtu. (FXStreet) Housing Development Finance Corp. priced its biggest ever rupee bond issuance ahead of a merger with its banking unit, which will create an Indian financial services behemoth valued at more than $200 billion. India’s largest mortgage lender will raise 250 billion rupees ($3 billion) selling notes due in a decade at a coupon of 7.97% on Friday, according to people familiar with the matter. The proceeds will be used to support its housing finance business, said the people, who asked not to be identified discussing confidential information. (Bloomberg) Bitcoin surged higher and gained nearly 10% on Wednesday, touching its highest level since August near $25,000. Although BTC/USD retreated modestly early Thursday, it clings to modest daily gains at around $24,500. Similarly, Ethereum rose 8% on Wednesday before stabilizing near $1,700 on Thursday. (FXStreet) Source: FXStreet, DailyFX, Bloomberg 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

2023-02-15 09:40

Market Update - 15 February 2023 NZD/USD remains under heavy selling pressure for the second successive day on Wednesday. Spot prices drop closer to the monthly low amid strong follow-through buying around the USD. Expectations for additional rate hikes by the Fed and the risk-off mood benefit the greenback. (FXStreet) EUR/USD gives away part of the weekly advance on Wednesday. Chairwoman C.Lagarde is due to speak later in the session. Markets’ attention is expected to be on the US Retail Sales. Sellers seem to have regained the upper hand around the European currency and now put EUR/USD under some pressure near the 1.0700 neighbourhood on Wednesday. (FXStreet) GBP/USD extends the previous day’s pullback from fortnight high to snap two-day uptrend. UK CPI slides to 10.1% YoY in January versus 10.3% expected and 10.5% prior. Upbeat Treasury bond yields, hawkish Fed speak underpin US Dollar rebound. Hopes of overcoming UK’s labor crisis, BoE’s cautious optimism probe Cable buyers. (FXStreet) USD/JPY retreats from intraday high, indecisive after two-day winning streak. Sustained break of 50-DMA, upbeat oscillators favor bulls within bearish chart pattern. A clear downside break of 130.60 confirms rising wedge and can recall sellers. (FXStreet) USD/CAD regains positive traction on Wednesday and is supported by a combination of factors. Sliding crude oil prices undermines the Loonie and acts as a tailwind amid sustained USD buying. The prospects for more rate hikes by the Fed and the risk-off mood benefit the safe-haven buck. (FXStreet) AUD/USD meets with heavy supply on Wednesday and dives back closer to the weekly low. Rising bets for additional rate hikes by the Fed push the USD back closer to a multi-week top. The risk-off mood also benefits the safe-haven buck and weighs on the risk-sensitive Aussie. (FXStreet) USD/CHF picks up bids to refresh intraday high, extend the previous day’s bounce off one-week low. Upbeat MACD signals, sustained trading beyond 200-HMA favor buyers inside bullish chart formation. Sellers need to conquer the golden Fibonacci ratio to retake control. (FXStreet) EUR/GBP gains strong positive traction and snaps a seven-day losing streak to a two-week low. The softer UK CPI print weighs on the Sterling and prompts an aggressive short-covering move. Bets for additional jumbo interest rate hikes by the ECB underpin the Euro and remain supportive. (FXStreet) GBP/JPY meets with a fresh supply on Wednesday and erodes a part of the overnight gains. The softer UK CPI print eases pressure on the BoE to tighten further and weighs on the GBP. The risk-off mood underpins the safe-haven JPY and also contributes to the intraday decline. (FXStreet) Hong Kong’s intervention to support the local dollar has made just a minor dent in traders’ bearish bets, suggesting more liquidity will need to be drained from the system to defend the currency peg. The Hong Kong dollar has strengthened less than 0.1% from the weak end of its trading band with the greenback since the city’s de-facto central bank stepped in this week. Traders are looking through the intervention to the recent slump in the city’s interbank rates, which continue to offer hedge funds the biggest opportunity in history to borrow the currency cheaply and buy the higher-yielding US dollar in the so-called short HKD carry trade. (Bloomberg) USD/INR seesaws around multi-day high as firmer US Dollar jostles with sluggish markets, downbeat Oil price. Fed Officials ignore sticky inflation to defend hawkish bias and propel US Treasury bond yields, USD. Upbeat WPI inflation favor RBI rate hike expectations and put a floor under Indian Rupee. US data, risk catalysts eyed for fresh impulse. (FXStreet) Prices of the WTI prolonged the weekly leg lower on Tuesday. The daily decline was on the back of increasing open interest and volume and it is indicative that further losses lie ahead for the commodity. That said, the loss of the minor support at $76.58 (February 9) could pave the way for a drop to the 2023 low at $72.30 (February 6). (FXStreet) Gold price extended its slide with the 10-year US T-bond yield holding comfortably above 3.7% during the Asian trading hours on Wednesday. XAU/USD was last seen trading at its lowest level since early January below $1,850. (FXStreet) Bitcoin gained nearly 2% on Tuesday and seems to have gone into a consolidation phase slightly above $22,000 on Wednesday. Ethereum rose more than 3% on Tuesday and reclaimed $1,500 after having declined in the previous two days. Early Wednesday, ETH/USD is moving sideways in a narrow range at around $1,550. (FXStreet) Source: FXStreet, Bloomberg 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.

2023-02-14 09:36

Market Update - 14 February 2023 EUR/USD climbs to 2-day highs near 1.0750. Flash EMU Q4 GDP due later in the domestic docket. US inflation figures take centre stage later in the NA session. The European currency extends the auspicious start of the week and pushes EUR/USD to the area of 2-day peaks near 1.0750 on Tuesday. (FXStreet) GBP/USD scales higher for the second straight day and is supported by a combination of factors. The better-than-expected UK jobs data benefits the British Pound amid sustained USD selling. The upside potential, however, seems limited ahead of the crucial US consumer inflation data. (FXStreet) As expected, the Japanese government nominated Kazuo Uedo to become the next governor of Bank of Japan (BoJ) on Tuesday. Former Financial Services Agency (FSA) chief Ryozo Himino and career central banker and BoJ executive Shinichi Uchida are also nominated as the two deputy governors. USD/JPY showed no immediate reaction to this development and was last seen moving sideways at around 132.00. (FXStreet) The Reserve Bank of New Zealand reported that the Inflation Expectations for the first quarter dropped to 3.3% from 3.62%. NZD/USD lost its traction after this data and turned negative on the day below 0.6350. (FXStreet) AUD/USD lacks any firm intraday direction and oscillates in a narrow range on Tuesday. Recession fears seem to cap the risk-sensitive Aussie, though a weaker USD lends support. Traders keenly await the US consumer inflation data for January before placing fresh bets. (FXStreet) USD/CAD gains some positive traction on Tuesday, though lacks bullish conviction. Subdued crude oil prices undermine the Loonie and act as a tailwind for the pair. The ongoing USD retracement slide from a multi-month top caps any further gains. Traders also seem reluctant and prefer to wait for the release of the US CPI report. (FXStreet) USD/CHF takes offers to renew intraday low, stretching pullback from weekly top. Clear downside break of short-term key trend line, SMA joins downbeat oscillators to favor bearish bias. Recovery remains elusive unless crossing five-week-old resistance line. (FXStreet) EUR/GBP reverses bounce off key support confluence on strong UK employment data. UK Unemployment Rate stays unchanged but Claimant Count Change drops. Divergence between ECB and BoE policymakers may recall pair buyers if EU Q4 GDP improves. (FXStreet) GBP/JPY reverses an intraday dip to the 160.00 neighbourhood, though lacks follow-through. The monthly upbeat UK jobs data underpins the Sterling and acts as a tailwind for the cross. Recession fears, expectations for a hawkish shift by the BoJ benefit the JPY and caps gains. (FXStreet) Hong Kong’s de facto central bank bought local dollars to defend its peg to the greenback for the first time since November, as a slump in bank borrowing costs made shorting the city’s currency a popular trade. The Hong Kong Monetary Authority purchased HK$4.2 billion ($538 million) worth of local dollars. The operation will reduce the city’s aggregate balance, a gauge of interbank liquidity, to HK$91.86 billion on February 15. This move could potentially drive up local funding costs and squeezing the bearish trades. (Bloomberg) Gold price failed to stage a rebound on Monday and registered its lowest daily close in a month slightly above $1,850 as the 10-year US T-bond yield held steady at around 3.7%. Early Tuesday, XAU/USD stages a technical correction and stays in positive territory above $1,860. (FXStreet) Silver extends its sideways consolidative price move around the $22.00 mark on Tuesday. The technical setup favours bearish traders and supports prospects for additional losses. A sustained break below the 100-day SMA support is needed to confirm the negative bias. (FXStreet) The index remains side-lined around the 103.00 region. Bullish attempts appear capped by the 104.00 area so far. All the attention will be on the release of US CPI later in the session. The greenback, in terms of the USD Index (DXY), struggles to find footing near the 103.00 zone on turnaround Tuesday. (FXStreet) It may be too soon to conclude that the worst for US natural gas prices is over. But a minor rebound or an extended range is plausible in the interim. To be sure, beyond the hourly timeframes, the trend remains down across multiple timeframes. Indeed, as arecent update highlighted, a major double-top pattern (the 2022 highs) triggered at the end of last year points to further downside, potentially toward the 2020 low of around 1.45 (see weekly chart). (DailyFX) The Market Perspective: Crude Oil Range Between 82.50 and 72.50. US-based WTI crude futures have moved up to trendline resistance that stretches back 8 months, but both retail and large speculative interests seem to believe in the ceiling. The correlation between US oil and USDCAD is an assumed common, negative relationship; but this Dollar-pair is one of the less responsive pairs to recent CPI volatility. (DailyFX) Bitcoin dropped to its lowest level in nearly three weeks below $21,400 on Monday but erased its losses to close the day flat. Early Tuesday, BTC/USD trades flat slightly below $21,800. Ethereum registered small losses on Monday and trades within a touching distance of $1,500 on Tuesday. (FXStreet) Source: FXStreet, DailyFX 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.

2023-02-13 09:22

Market Update - 13 February 2023 GBP/USD has been struggling to gather recovery momentum. 1.2070 aligns as key resistance level for the pair in the short term. Wall Street's main indexes look to open flat ahead of key inflation data. (FXStreet) AUD/USD reverses an intraday dip to sub-0.6900 levels amid a modest USD downtick. Hawkish Fed expectations to limit the USD fall and cap the pair amid the risk-off mood. Traders might also prefer to wait for the release of the crucial US CPI report on Tuesday. (FXStreet) EUR/USD lost over 100 pips last week and stays in a consolidation phase below 1.0700 on Monday. On Tuesday, Eurostat will publish the Employment Change and Gross Domestic Product data for the fourth quarter. Following last week's sharp decline, GBP/USD moves sideways at around 1.2050 to start the week. (FXStreet) Following Friday's volatile action, USD/JPY gathered bullish momentum early Monday and was last seen trading near 132.20, where it was up more than 0.5% on a daily basis. Reuters reported on Monday that Japan's Upper House of Parliament has scheduled confirmation hearings on government nominees for the new Bank of Japan (BoJ) governor and his two deputies on February 27. Markets widely expect the Japanese government to formally nominate Kazuo Ueda on Tuesday, February 14. (FXStreet) NZD/USD stays pressured towards short-term key support after unimpressive weekly close. Sustained U-turn from 200-SMA, looming bear cross on MACD favor sellers. Late January low holds the key to the bear’s defeat. (FXStreet) Despite the broad-based US Dollar strength, USD/CAD fell over 100 pips on Friday. The monthly data published by Statistics Canada showed that Net Change Employment was up 150,000 in January, compared to the market expectation of 15,000, and provided a boost to the Canadian Dollar. (FXStreet) EUR/GBP fades bounce off monthly support, grinds near intraday high of late. Sustained trading beyond 200-SMA, looming bull cross on MACD favor buyers. Weekly resistance line guards immediate upside ahead of monthly high. (FXStreet) GBP/JPY pares the previous day’s losses inside fortnight-long symmetrical triangle. Steady RSI backs recent recovery, 200-SMA challenges immediate upside. Multiple supports to test bears on their return. (FXStreet) Gold price oscillates in a narrow range just above a one-month low and 50-day SMA support. Bets for additional rate hikes by the Federal Reserve act as a headwind for the yellow metal. A stronger US Dollar contributes to capping the XAU/USD, though recession fears limit losses. (FXStreet) WTI extends pullback from two-week high amid sour sentiment. Tensions surrounding unidentified objects, hawkish Fed weigh on commodity prices. OPEC expects upbeat energy demand, Russia braces for Oil production cut. US inflation data will be crucial for clear directions. (FXStreet) Silver price takes offers to renew multi-day low, fades the previous day’s corrective bounce off 100-DMA. Bearish MACD signals, failure to rebound from key DMA favor XAG/USD sellers. Nearly oversold RSI (14) line challenges further downside of metal. 200-DMA lures Silver bears unless XAG/USD stays below $23.25. (FXStreet) USD/CHF is aiming to recover after a corrective move amid a risk-off market mood. The asset managed to extend its recovery move above the 23.6% Fibo retracement at 0.9291. An absence of a potential trigger is barricading the RSI (14) in crossing the 60.00 hurdle. (FXStreet) USD/MXN is struggling to extend its recovery move above 18.70 amid the risk-off mood. A Reuters poll indicates that the monthly headline CPI and core inflation will escalate by 0.4%. Banxico is proving to be an inflation fighter after the departure of Gerardo Esquivel, who was considered a big dove. (FXStreet) USD/INR picks up bids to pare the previous losses amid risk-off mood. Fears surrounding mystery objects, hawkish Fed roil risk profile and underpin US Dollar after Friday’s upbeat data. Light calendar, cautious mood ahead of key data/events also exert downside pressure on Indian Rupee. (FXStreet) Bitcoin stayed relatively quiet over the weekend but ended the second straight week in negative territory, losing around 5%. BTC/USD trades up and down in a narrow channel below $22,000 early Monday. Ethereum stays in a consolidation phase and trades at around $1,500. (FXStreet) Source: FXStreet, DailyFX 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.