2023-01-31 09:40

Market Update - 31 January 2023 USD/JPY bulls eye a 50% mean reversion towards 130.30 that meets the prior support. The outlook is bearish for the day ahead with a test of 130.00 eyed ahead of the Federal Reserve on Wednesday. (FXStreet) The Cable has found a cushion as the USD Index has extended its correction. Pound Sterling bulls have found support from the 200-EMA around 1.2350. A breakdown of the RSI (14) into the 20.00-40.00 range will trigger the bearish momentum. The GBP/USD pair has sensed a buying interest after dropping below 1.2340 in the Asian session. (FXStreet) USD/CAD retreats from intraday high, consolidates the biggest daily gains in a fortnight. Covid-linked headlines put a floor under the Oil price after it dropped amid risk-aversion, fears of more supplies. Market sentiment remains divided ahead of the key data/events. Canada GDP for November, US CB Consumer Confidence can entertain traders ahead of FOMC. (FXStreet) EUR/GBP reverses the previous day’s corrective bounce off one-week low. Euro struggles to defend hawks after downbeat German data challenge hawkish ECB bias. IMF’s warning over the UK’s economic conditions challenge EUR/GBP bears. Preliminary readings of Eurozone Q4 GDP will be crucial for immediate directions, ECB vs. BoE battle eyed. (FXStreet) The index moves further north of the 102.00 barrier. The Fed starts its 2-day meeting later on Tuesday. CB Consumer Confidence, housing data next of note in the docket. The greenback extends the rebound and now looks to consolidate the recent breakout of the key 102.00 hurdle when gauged by the USD Index (DXY). (FXStreet) EUR/USD takes offers to refresh intraday low as bears tighten the grip. A clear break of three-week-old ascending trend line, sustained trading below 200-HMA favor sellers. Bearish MACD signals add strength to the downside bias. Buyers need to cross the 1.0930 hurdle to retake control. (FXStreet) USD/INR is aiming to shift its business above confidently 81.60 amid the souring market mood. The Fed is expected to further decelerate the pace of policy tightening further. Indian Rupee might display sheer volatility on Budget Day ahead. (FXStreet) AUD/USD drops to a one-week low on Tuesday and is pressured by a combination of factors. Disappointing Australian Retail Sales figures weigh on the Aussie amid a modest USD strength. Bets for smaller Fed rate hikes keep a lid on the buck and might help limit losses for the major. (FXStreet) USD/CNH is showing wild ticks on better-than-projected China’s official PMI data. Official Manufacturing PMI has soared to 50.1 while the Non-Manufacturing PMI has climbed to 54.4. The risk-perceived assets are failing to find a cushion amid Fed policy inspired-volatility. (FXStreet) NZD/USD has refreshed its weekly low around 0.6440 amid negative market sentiment. The Kiwi asset has delivered a breakdown of the consolidation and a Rising Wedge pattern. A slippage of the RSI (14) into the 20.00-40.00 range has weakened the New Zealand Dollar. (FXStreet) Prices of the WTI added to the previous decline on Monday against the backdrop of increasing open interest. That said, the continuation of the downtrend appears on the cards and targets the so far 2023 low at $72.50 per barrel (January 5). (FXStreet) Gold price fades corrective bounce from intraday low during four-day downtrend. Risk profile appears unclear even as Covid news, China data join IMF’s hopes of economic revival. Cautious mood ahead of FOMC, sluggish yields and IMF’s fears of inflation seem to weigh on XAU/USD price. (FXStreet) Silver meets with a fresh supply on Tuesday and seems vulnerable to sliding further. Last week’s breakdown below the $23.80-$23.75 confluence favours bearish traders. A sustained move back above the $24.00 mark is needed to negate the negative bias. (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.

2023-01-27 09:52

Market Update - 27 January 2023 USD/CAD regains some positive traction on Friday amid a modest pickup in the USD demand. Thursday’s upbeat US macro data fuels hawkish Fed expectations and benefits the greenback. Bullish crude oil prices continue to underpin the Loonie and keep a lid on any further gains. Traders now eye the US PCE report for a fresh impetus ahead of the FOMC meeting next week. (FXStreet) The index extends the optimism and retargets 102.00. US yields pick up extra pace along the curve on Friday. Final Consumer Sentiment, PCE, housing data next on tap. The greenback, in terms of the USD index (DXY), maintains the bullish outlook and refocuses on the 102.00 barrier and beyond at the end of the week. (FXStreet) EUR/GBP takes the bids to refresh intraday low after snapping two-day downtrend. Convergence of 200-EMA, immediate descending trend line guards recovery moves. 50% Fibonacci retracement appears the key support for bears to watch. (FXStreet) USD/JPY retreats towards intraday low, reverses the previous day’s corrective bounce. BoJ extends five-year loans against collateral to financial institutions to defend YCC as JGB rallied after Tokyo inflation. US Dollar traces firmer yields ahead of US Core PCE Price Index for December. (FXStreet) EUR/USD takes offers to refresh intraday low, extend the previous day’s pullback from nine-month high. US data flashed mixed signals but rebound in Treasury bond yields puts a floor under US Dollar. Absence of ECB speak, cautious sentiment ahead of the key US data exerts downside pressure on Euro pair. (FXStreet) GBP/USD clings to mild losses during the first negative day in three. Mixed US data signals Fed’s dovish hike but chatters over BoE’s rate peak challenge Cable buyers. UK Treasury Secretary Hunt’s hesitance to cut the taxes also weighs on GBP/USD prices. Cautious mood could probe pair traders ahead of US Core PCE Price Index for December. (FXStreet) AUD/USD seesaws around seven-month high, fades upside momentum after five-day winning streak. Mixed details of Australia’s Q4 Export-Import Price Index, PPI probe Aussie pair buyers. Cautious mood ahead of the Fed’s preferred inflation also acts as upside filter. RBA versus Fed drama, easing economic slowdown fears underpin bullish bias. (FXStreet) USD/INR has surpassed the critical hurdle of 81.60 amid sheer recovery in the USD Index. Anxiety ahead of the US PCE data has trimmed the risk appetite of the market participants. Softening US core PCE price index might not surprise investors as core US CPI and PPI were also trimmed. (FXStreet) NZD/USD surrenders modest intraday gains amid the emergence of some buying around the USD. Thursday’s upbeat US macro data fuels hawkish Fed expectations and underpins the greenback. A positive risk tone acts as a headwind for the buck and offers support to the risk-sensitive Kiwi. (FXStreet) Prices of the barrel of the WTI added to the previous daily upside on Thursday amidst increasing open interest and volume. Against that, there seems to be scope for the continuation of the move with the immediate target at the so far 2023 peak at $82.60 per barrel (January 23). (FXStreet) Prices of the natural gas kept its downtrend well in place for yet another session on Thursday. The move was amidst rising open interest and volume and underpins the idea that extra weakness remains on the cards in the very near term. The next target of note appears at the 2021 lows around $2.40 per MMBtu. (FXStreet) Gold price remains on the defensive for the second straight day amid modest US Dollar strength. Thursday’s upbeat US macro data fuels hawkish Fed expectations and underpins the Greenback. A positive risk tone further exerts pressure on safe-haven XAU/USD ahead of the US PCE data. The market focus will remain glued to the highly-anticipated FOMC policy meeting next week. (FXStreet) Silver price is looking to position its feet confidently above the breakout region of the Descending Triangle. Advancing 20-EMA indicates that the short-term bullish trend is intact. A bullish range shift by the RSI (14) will trigger the upside momentum. (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.

2023-01-26 09:46

Market Update - 26 January 2023 EUR/USD deflates a tad after hitting a new yearly high near 1.0930. Consumer Confidence in Italy disappointed expectations in January. US advanced Q4 GDP, Durable Goods Orders next of note in the NA session. (FXStreet) USD/JPY reverses an intraday dip to a fresh weekly low, albeit lacks follow-through. A mildly positive tone undermines the safe-haven JPY and lends support to the pair. Bets for smaller Fed rate hikes keep the USD bulls on the defensive and cap gains. Traders also seem reluctant to place aggressive bets ahead of the US Q4 GDP print. (FXStreet) USD/CAD gains some positive traction for the second straight day, though lacks follow-through. The BoC’s pivot on Wednesday continues to undermine the Loonie and lends support to the pair. Bets for smaller Fed rate hikes keep the USD bulls on the defensive and might cap the upside. Investors might also prefer to move to the sidelines and wait for the release of the US Q4 GDP. (FXStreet) The index drops to the 101.50 level, or new 8-month low. US yields attempt a tepid rebound on Thursday. Flash Q4 GDP, weekly Claims, Durable Goods Orders next on tap. The greenback regains the 101.60/70 band after bottoming out in fresh 8-month lows around 101.50 when gauged by the USD Index (DXY) on Thursday. (FXStreet) GBP/USD oscillates in a narrow trading band through the early European session on Thursday. Bets for smaller Fed rate hikes keep the USD bulls on the defensive and lend some support. Traders prefer to wait for the release of the Advance Q4 GDP before placing aggressive bets. (FXStreet) GBP/JPY bounces off intraday low but stays negative on a day. BoJ Summary of Opinions suggest policymakers are divided considering higher inflation. UK Business Confidence gauge slumps to the lowest levels since 2009. Sluggish markets restrict immediate moves, Tokyo inflation eyed. (FXStreet) AUD/USD seesaws around five-month high, up for the fifth consecutive day. Hong Kong’s upbeat return after five-day holidays, Tesla earnings underpin favor firmer sentiment. Strong Aussie inflation renewed talks of RBA’s 0.25% rate hike versus previous chatters of policy pivot. US Q4 GDP, PCE Price data will be crucial for clear directions ahead of next week’s FOMC. (FXStreet) USD/INR pares recent losses amid holiday in India, cautious mood ahead of key US data. Mixed sentiment restricts market moves as traders await US Q4 GDP, PCE Price data. Odds favoring higher foreign fund inflow and softer Oil price favor INR buyers. Concerns surrounding Fed’s pivot keep US Dollar on a dicey floor. (FXStreet) NZD/USD regains some positive traction amid the prevalent USD selling bias. Bets for smaller rate hikes by the Fed continue to weigh on the greenback. Traders now look forward to the Advance US Q4 GDP print for some impetus. (FXStreet) Gold price takes the bids to renew nine-month high, up for the fourth consecutive day. US Dollar weakness underpins XAU/USD upside amid cautious mood ahead of the key United States Gross Domestic Product. Dovish bias surrounding the Fed contrasts with the hawkish outlook over ECB to weigh on USD and favor Gold buyers. Convergence of six-week-old ascending trend line, March 2022 peak could test XAU/USD bulls. (FXStreet) Silver takes offers to renew intraday low as US Dollar licks its wound ahead of the key data. Sluggish markets, China-inspired optimism put a floor under XAG/USD prices. Firmer prints of US Q4 GDP could renew hawkish Fed bets and extend latest pullback. (FXStreet) Prices of natural gas dropped further on Wednesday and are expected to put the $3.00 mark per MMBtu to the test sooner rather than later. The uptick in open interest and volume is supportive of that view and exposes a drop to the March 2021 lows near $2.40. (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.

2023-01-20 09:46

Market Update - 20 January 2023 GBP/USD renews intraday low while snapping three-day uptrend after the key UK data. British Retail Sales slumped to -1.0% MoM in December versus 0.5% expected and -0.4% prior. Hawkish Fedspeak allows US Dollar to pare recent losses despite downbeat US data. Upbeat comments from BOE’s Bailey, JP Morgan’s upbeat outlook for UK economy put a floor under the Cable price. (FXStreet) The index extends the consolidative theme around the 102.00 region. Risk appetite trends looks mixed so far at the end of the week. Housing data, Fedspeak next on tap in the US docket. The USD Index (DXY), which tracks the greenback vs. a bundle of its main rivals, extends further the consolidation theme on Friday, always around the 102.00 neighbourhood. (FXStreet) GBP/JPY is approaching 160.00 as investors are still confused about forward Bank of Japan’s policy stance. Bank of England might discover a meaningful downtrend in inflation from the late spring amid tight monetary policy. Bank of Japan could look for an exit from the expansionary policy as inflation is stably rising. GBP/JPY might display a power-pack action after the release of the United Kingdom Retail Sales data. (FXStreet) USD/JPY gains positive traction on Friday and draws support from a combination of factors. A further recovery in the US bond yields helps revive the USD demand and acts as a tailwind. A positive risk tone undermines the safe-haven JPY and provides an additional lift to the pair. (FXStreet) EUR/USD retreats from intraday high, pares weekly gains around nine-month high. Wednesday’s bullish Doji, sustained trading above 10-DMA keeps buyers hopeful. Downside break of 1.0650 could confirm rising wedge bearish chart pattern on D1. (FXStreet) AUD/USD gains some positive traction on Friday, though lacks follow-through. The USD benefits from rebounding US bond yields and caps gains for the pair. A mildly positive risk tone might act as a tailwind for the risk-sensitive Aussie. (FXStreet) USD/INR probes three-day downtrend but bears approach seven-week-old key support line. Hopes of more foreign fund inflow due to moves of Indian private players underpin INR strength. Mixed US data weigh US Dollar even as Fed policymakers stay hawkish heading into pre-FOMC blackout. Firmer Oil price, RBI’s defensive move could challenge the USD/INR bears. (FXStreet) USD/MXN is oscillating in a narrow range below the critical resistance of 19.00. The market mood is quite confusing as the S&P500 futures and US Treasury yields are showing a recovery. The Fed might announce two more 25 bps interest rate hikes before pausing the policy tightening program. (FXStreet) NZD/USD clings to mild gains during two-week uptrend. Cautious optimism in the market joins sluggish US Treasury yields, USD to favor buyers. Hawkish Fedspeak, recession fears probe upside momentum amid light calendar. (FXStreet) WTI retreats from intraday high, consolidates gains during two-week uptrend. Hawkish Fedspeak, downbeat US data underpin economic slowdown fears even as China demand puts a floor under the prices. Higher inventory build, recent pause in US Dollar’s downside also challenge Oil buyers. Risk catalysts are the key to fresh impulse amid a light calendar. (FXStreet) Gold price is struggling to sustain above the immediate resistance of $1.930.00. Hawkish commentary from Fed policymakers is strengthening the US Treasury yields. According to a Reuters survey, the Fed will pause the policy tightening program after two 25 bps rate hikes. (FXStreet) Silver edges higher on Friday, albeit lacks follow-through beyond the $24.00 mark. The technical setup favours bullish traders and supports prospects for further gains. A convincing break below the trend-channel support will negate the positive outlook. (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.

2023-01-19 09:44

Market Update - 19 January 2023 EUR/USD adds to Wednesday’s gains and advances through 1.0800. ECB Accounts, Chairwoman Lagarde come next in the docket. Weekly Claims, housing results and the Philly Fed Index due next in the US. (FXStreet) The index trades slightly on the defensive around 102.30. The dollar meets resistance near the 103.00 mark so far this week. The Philly Fed Index, weekly Claims and housing data next on tap. The greenback, in terms of the USD Index (DXY), remains under pressure in the lower end of the range near 102.30 on Thursday. (FXStreet) GBP/USD treads water as bulls and bears jostle between crucial resistance and support. Looming bear cross on MACD, failure to cross 1.2450 hurdle tease sellers. Two-week-old ascending trend line, 200-SMA limit downside moves. RSI conditions suggest further grinding towards the north. (FXStreet) GBP/JPY witnessed heavy selling on Thursday and retreats further from a three-week high. Recession fears boost demand for the safe-haven JPY and exert some downward pressure. The prospects for more BoE rate hikes underpin the GBP and should limit deeper losses. (FXStreet) USD/JPY consolidates the previous day’s gains as yields renew multi-month low. Downbeat Japan trade numbers, fears of softer demand from China and US recession woes fail to stop JPY bulls. US Dollar remains depressed amid softer US data, mixed updates. (FXStreet) USD/CAD hits a nearly two-week high on Thursday, albeit lacks follow-through. Retreating crude oil prices undermines the Loonie and lends support to the major. Falling US bond yields keep the USD bulls on the defensive and act as a headwind. (FXStreet) USD/MXN picks up bids to renew intraday high, defends two-day gains. US Dollar remains pressured as softer US data fails to support hawkish Fed talks. Mexican Peso is among the top Emerging Market performers as commodity prices surge. (FXStreet) AUD/USD bears poke previous monthly top during a two-day downtrend from five-month high. Australia jobs report bolstered case for slower rate hike from the RBA. US Treasury bond yields renew multi-day low even as downbeat data, hawkish Fedspeak renew recession fears. (FXStreet) USD/IDR struggles to extend losses despite breaking seven-month-old support line as traders await Bank Indonesia (BI) Rate decision. 200-DMA, oversold RSI conditions also challenge bears around multi-day low. Buyers remain off the table unless rising back beyond 100-DMA. BI is expected to end the rate-hike cycle with 0.25% lift in benchmark interest rate. (FXStreet) NZD/USD trades with modest losses on Thursday, though the downside remains cushioned. Looming recession risks weigh on investors’ sentiment and undermine the risk-sensitive Kiwi. Subdued USD price action lends some support to the major and helps limit any deeper losses. (FXStreet) USD/INR holds lower ground as bears cheer three-day downtrend amid softer US Dollar. Downbeat US data, mixed Fedspeak weigh on the greenback. Optimism surrounding China, softer Oil price adds strength to the INR. (FXStreet) USD/CHF consolidates recent losses around the lowest levels since November 2021. A two-month-old bearish channel, downbeat oscillators keep sellers hopeful. Bear cross, clear downside break of key ascending trend line adds strength to the bearish bias. Recovery remains elusive unless the quote stays below 200-DMA. (FXStreet) Crude oil sinks the most in 2 weeks as soft US data scares traders Meanwhile, an IEA report underscored 2023 global supply glut bets Focus shifts to EIA weekly stockpiles as WTI faces triangle pattern. (DailyFX) Prices of natural gas dropped further on Wednesday and revisited levels last seen back in May 2021. The downtick was amidst increasing open interest, which leaves the prospects for extra losses well on the cards for the time being. That said, the $3.00 mark per MMBtu still emerges as the next support of note for the commodity. (FXStreet) Gold prices charted the third consecutive daily pullback on Wednesday. The leg lower was amidst shrinking open interest and volume and leaves the door open to a potential near-term rebound with the immediate target at recent peaks near $1930 per ounce troy. (FXStreet) Silver extends its descent for the third successive day and drops to over a one-week low. The technical setup now favours bearish traders and supports prospects for a further fall. A convincing break below the trend-channel support will reaffirm the negative outlook. (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.

2023-01-18 09:17

Market Update - 18 January 2023 EUR/USD resumes the uptrend and retakes 1.0800 and beyond. Final inflation figures in the euro area take centre stage on Wednesday. Retail Sales, Producer Prices take centre stage across the pond. The European currency regains part of its shine and encourages EUR/USD. (FXStreet) GBP/USD ticks up to renew five-week high after UK inflation numbers. UK CPI, RPI came in softer for December. UK Chancellor Jeremy Hunt hints at no tax cuts in the next budget. Downbeat yields underpinned US Dollar rebound ahead of US Retail Sales, PPI. (FXStreet) The index accelerates gains and flirts with the 103.00 area. US yields remain on the defensive on Wednesday. Retail Sales, Producer Prices, Fedspeak next of note in the docket. The USD Index (DXY), which tracks the greenback vs. a basket of its main rivals, climbs to multi-day highs near the 103.00 mark on Wednesday. (FXStreet) EUR/GBP is at a make or a break level around 0.8772 ahead of the UK Inflation release. Considering the UK’s stubborn inflation, the Bank of England might hike interest rates further by 50 bps. European Central Bank might decelerate the pace of hiking interest rates led by declining energy prices. EUR/GBP is expected to continue its downside momentum to near 0.8750 after breaking the 0.8772 support. (FXStreet) USD/CAD turns lower for the second straight day, albeit lacks follow-through selling. Bullish crude oil prices underpin the Loonie and act as a headwind for the major. Broad-based USD strength lends some support ahead of important US macro data. (FXStreet) USD/JPY is struggling to extend its storm further above the prior auction area in a 131.38-132.93 range. The asset has conquered the 200-EMA swiftly post unchanged monetary policy by the BoJ. The US Dollar Index (DXY) has surpassed 102.40 after delivering a breakout above 102.20 resistance. (FXStreet) NZD/USD regains strong positive traction and jumps to over a one-month high on Wednesday. The optimism over a Chinese economic recovery provides a strong lift to the risk-sensitive Kiwi. Bulls seem rather unaffected by a stronger USD and might now aim to reclaim the 0.6500 mark. (FXStreet) USD/CHF prints the biggest daily gain in a week despite retreating from intraday high. Convergence of one-week-old descending trend line, 50-HMA restricts immediate upside. MACD, RSI also suggest a reduction in bullish momentum. (FXStreet) USD/INR picks up bids to reverse the previous day’s pullback from one-week high. Bank of Japan’s inaction drowned Treasury bond yields, underpinned US Dollar demand. Increased hedging by Indian importers, foreign outflows weigh on the INR. US Retail Sales, PPI will be crucial to forecast further USD run-up. (FXStreet) AUD/USD struggles to preserve its modest intraday gains amid broad-based USD strength. Bets for smaller Fed rate hikes and declining US bond yields might cap gains for the buck. Odds for an additional rate hike by the RBA should help limit the downside for the major. Traders now look forward to important US macro releases for some meaningful impetus. (FXStreet) Tuesday’s decent uptick in prices of the barrel of the WTI was in tandem with rising open interest and volume, exposing the continuation of the ongoing rebound in the very near term. Against that, the next hurdle of note is now expected at the December 2022 high at $83.32 (December 1). (FXStreet) The multi-week downtrend in prices of the natural gas remains unchanged so far. Tuesday’s small advance was on the back of shrinking open interest and curtails the likelihood of occasional bullish attempts. On this, a breach of the key $3.00 per MMBtu should expose a deeper retracement in prices of the commodity in the near term. (FXStreet) Gold price takes offers to refresh intraday low during three-day downtrend. US Dollar contrasts yields as BoJ inaction pleases bond buyers. Mixed US data, Fedspeak previously probed DXY bulls. US Retail Sales, PPI will be important for fresh impulse. Gold price (XAU/USD) stands on slippery grounds while refreshing the weekly bottom around $1,897 during early Wednesday morning in Europe. (FXStreet) Silver attempts a modest recovery from the weekly low touched earlier this Wednesday. Mixed oscillators setup warrants some caution before placing aggressive directional bets. A convincing break below channel support is needed to support prospects further losses. (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.