Market Update - 11 January 2023

The index treads water in the low-103.00s on Wednesday. Markets continue to wait for the release of US inflation figures. MBA Mortgage Applications will be the sole data scheduled today. The greenback extends the consolidative mood above the 103.00 hurdle when tracked by the USD Index (DXY) on Wednesday. (FXStreet)

USD/JPY steadily climbs back closer to the weekly high, though lacks bullish conviction. A positive risk tone undermines the safe-haven JPY and acts as a headwind for the pair. Rising bets for smaller Fed rate hikes weigh on the USD and continue to cap the upside. (FXStreet)

GBP/JPY is failing to surpass the immediate resistance of 161.00 as BOJ is discussing an exit from its ultra-loose policy. Japanese administration and the BOJ will review their decade-long loose policy under novel BOJ leadership. The Pound Sterling may display significant action after the release of UK’s economic activities data. (FXStreet)

USD/CAD takes offers to pare intraday gains around 1.3420 during early Wednesday morning in Europe. In doing so, the Loonie pair fails to trace options market signals as it consolidates the previous day’s recovery moves from a six-week low. (FXStreet)

EUR/USD is juggling below seven-month high at 1.0760 ahead of the United States inflation release. Federal Reserve policymakers are revising their policy projections after a drop in wage inflation. European Central Bank Centeno sees a deceleration in the inflationary pressures from March. EUR/USD is likely to display a volatility expansion while the direction will be based on the US CPI report. (FXStreet)

GBP/USD remains sidelined after snapping two-day uptrend the previous day, picks up bids of late. Cautious optimism allows Cable buyers to retake control ahead of the US CPI. UK, Japan brace for defense agreement, British PM praises healthcare conditions despite workers’ strikes. Risk catalysts could entertain traders ahead of inflation data. (FXStreet)

USD/INR pares recent losses with mild gains around the key support, snaps five-day losing streak. Nearly oversold RSI conditions add strength to recovery expectations. Previous support line from early August, two-month-old horizontal resistance challenge bulls. Lows marked during December, November can entertain bears ahead of 200-DMA. (FXStreet)

Australian Dollar has picked strength as Chinese firms have resumed Australian coal imports. The USD Index has sensed sheer selling pressure after failing to surpass 103.00. Aussie has resumed its upside journey after sensing support around the demand zone plotted in a 0.6884-0.6896 range. (FXStreet)

USD/CHF takes offers to refresh intraday bottom, fades bounce off nine-month low. Downside break of weekly support line, bear cross underpin downside bias. Recovery moves remain elusive unless crossing 0.9275 hurdle. (FXStreet)

NZD/USD edges higher on Thursday amid renewed USD selling bias, albeit lacks follow-through. Bets for less aggressive Fed rate hikes keep the US bond yields depressed and weigh on the USD. A positive risk tone further undermines the safe-haven buck and benefits the risk-sensitive Kiwi. Traders, however, seem reluctant to place aggressive bets ahead of the US CPI print on Thursday. (FXStreet)

Tuesday’s small downtick in prices of the barrel of the WTI was amidst rising open interest and volume. That said, the current range bound theme in the commodity is therefore expected to persist at least in the very near term, with the initial contention around $72.50 and the immediate target at the so far weekly high at $76.70. (FXStreet)

Tuesday’s marked retracement in prices of the natural gas was in tandem with increasing open interest and is indicative that a deeper drop could lie ahead in the very near term. On this, there is a solid contention region around the $3.50 mark per MMBtu, which exposes further decline in case the commodity clears it. (FXStreet)

Gold price rises for the fourth consecutive day amid sluggish markets. Mixed clues, light calendar and pre-data anxiety weigh on the US Dollar. Global economic slowdown fears join softer US Dollar to highlight Gold’s traditional haven status. Expectations of PBOC rate cut, cautious optimism surrounding China adds strength to the XAU/USD upside. (FXStreet)

Silver catches aggressive bids on Wednesday and snaps a two-day losing streak. The technical setup supports prospects for a further intraday appreciating move. A convincing break below the $23.00 mark is needed to negate the positive bias. (FXStreet)

Source: FXStreet, DailyFX

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