Market Update - 09 January 2023

GBP/USD gains traction for the second straight day and climbs to over a two-week high. A combination of factors keeps the USD bulls on the defensive and remains supportive. Looming recession risks could cap the optimism and lend support to the safe-haven buck. (FXStreet)

EUR/USD extends the optimism and flirts with 1.0700. The weaker dollar sustains the better tone in the risk complex. EMU Unemployment Rate, Sentix index next of note in the docket. The European currency keeps the bid tone unchanged and lifts EUR/USD to the boundaries of 1.0700 the figure at the beginning of the week. (FXStreet)

USD/JPY oscillates in a narrow trading band on the first day of a new week. The prevalent USD selling bias is seen as acting as a headwind for the major. The risk-on mood undermines the safe-haven JPY and limits the downside. (FXStreet)

The index remains on the defensive and flirts with 103.50. The dollar looks weaker as investors continued to digest NFP figures. Consumer Credit Change, short-term auction next on tap in the docket. The greenback starts the new trading week on the back foot and retreats to the mid-103.00s region when tracked by the USD Index (DXY). (FXStreet)

USD/CAD drops to the lowest levels in one month as bears keep the reins. China reopening, challenges for Fed hawks underpin risk-on mood. Oil price grinds higher amid softer US Dollar, hopes of more energy demand from China. Upbeat Canada jobs report versus mixed US data adds strength to the bearish moves. (FXStreet)

USD/CNH drops to the lowest levels since August 17, 2022. Clear break of 200-DMA, bearish MACD signals favor sellers as they eye two-month-old descending support line. Previous support line from June adds to the upside filters. (FXStreet)

A cheerful market mood has strengthened the Australian Dollar. North-side sloping 20-and 50-EMAs add to the upside filters. The RSI (14) has shifted into the bullish range of 60.00-80.00, which indicates that bullish momentum is active now. The AUD/USD pair is displaying a sideways auction around the immediate hurdle of 0.6930 in the Asian session. (FXStreet)

USD/INR dribbles near the lowest levels in one month. China reopening joins PBOC headlines to underpin risk-on mood in Asia. Downbeat US wage growth weigh on Treasury yields and hawkish Fed bets. Japan holiday, light calendar and upbeat oil prices allow bears to lick their wounds. (FXStreet)

Friday’s sharp uptick in prices of the ounce troy of gold was amidst increasing open interest and volume. That said, the continuation of the recovery appears the most likely scenario in the very near term, while gains are seen picking up pace on a convincing breakout of the $1880 region. (FXStreet)

Friday’s small downtick in prices of the WTI was amidst rising open interest, which suggests that further decline should not be discarded yet. Against that, the commodity still faces a key contention area at the 2022 low near the $70.00 mark per barrel (December 9). (FXStreet)

Natural gas prices resumed the downside on Friday, although they seem to have met some contention around the $3.50 region per MMBtu. The small decline was amidst rising open interest, which is indicative that a deeper pullback could lie ahead. The sharp bounce in volume, however, could spark some bouts of strength in the very near term as well. (FXStreet)

Source: FXStreet, DailyFX

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