Market Update - 10 January 2023

USD/JPY remains confined in a narrow trading band through the early European session. Rebounding US bond yields revives the USD demand and extends support to the major. Bets for less aggressive Fed rate hikes could cap the buck and limit any meaningful gains. (FXStreet)

GBP/USD portrays cautious markets ahead of key central bank leaders’ speeches. Upbeat prints of second-tier UK data fail to overcome inflation woes, tight labor market adds strength to the price pressure. Hawkish Fed talks, easing optimism surrounding China also probe Cable buyers. Panel discussion at Riksbank will be crucial as BoE Governor Bailey, Fed Chair Powell will speak there. (FXStreet)

USD/CAD is displaying back-and-forth moves, following the footprints of the US Dollar Index. Federal Reserve Powell’s speech has become critical after a decline in US economic activities and wage inflation. Bank of Canada Macklem’s speech could be hawkish after upbeat December employment data. USD/CAD may remain in the grip of bears on a broader note amid declining 20-and 50-EMAs. (FXStreet)

EUR/USD looks to consolidate further the breakout of 1.0700. The dollar trades in an inconclusive fashion so far on Tuesday. Investors’ focus gyrates to Chief Powell’s speech later in the session. The optimism around the European currency remains well and sound for yet another session and helps EUR/USD revisit the 1.0750 region on turnaround Tuesday. (FXStreet)

EUR/GBP attracts fresh buying on Tuesday and recovers further from over a two-week low. Dovish BoE expectations weigh on the British Pound and remain supportive of the move. The recent hawkish ECB rhetoric underpins the Euro and supports prospects for further gains. (FXStreet)

USD/CHF picks up bids to pare recent losses around the lowest levels since March 2022. Bearish MACD signals, failure to cross the support-turned-resistance signal further downside. 61.8% Fibonacci retracement level guards immediate upside, bears can aim for previous yearly bottom. (FXStreet)

USD/CHF picks up bids to pare recent losses around the lowest levels since March 2022. Bearish MACD signals, failure to cross the support-turned-resistance signal further downside. 61.8% Fibonacci retracement level guards immediate upside, bears can aim for previous yearly bottom. (FXStreet)

AUD/USD remains sidelined around four-month high, snaps two-day uptrend. Eight-week-long ascending trend channel, sustained breakout of 200-DMA favor bulls. Multiple Fibonacci retracement levels add to the downside filters. (FXStreet)

Monday’s decent gains in prices of the natural gas was in tandem with increasing open interest and volume, suggesting that extra gains could be in store for the commodity in subsequent sessions. However, the inability to gather convincing upside traction in the very near term could expose another potential visit to the contention area near the $3.50 mark per MMBtu. (FXStreet)

Prices of the WTI started the week in a positive mood amidst rising open interest and volume. That said, further upside should not be ruled out with the immediate target at the so far January peak at $81.44 per barrel (January 3). (FXStreet)

A decline in the US Dollar Index has shifted traction in favor of Silver price. Investors’ risk appetite has improved amid a rebound in S&P500 futures. The 200-period EMA is overlapping with the white metal prices, which indicates a lackluster performance ahead. Silver price (XAG/USD) has rebounded firmly after dropping to near $23.50 in the Asian session. (FXStreet)

Source: FXStreet, DailyFX

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