Market Update - 13 January 2023

USD/JPY drifts lower for the second straight day and drops to a fresh multi-month low. Bets for smaller Fed rate hikes continue to weigh on the USD and exert some pressure. Speculations for another BoJ policy tweak boost the JPY and contribute to the decline. (FXStreet)

EUR/GBP struggles to gain any meaningful traction and oscillates in a narrow band on Friday. A bleak outlook for the UK economy undermines the Sterling and continues to lend support. The recent hawkish ECB rhetoric underpins the Euro and supports prospects for further gains. (FXStreet)

The index attempts a tepid rebound just above 102.00. Investors keep pricing in a 25 bps rate hike by the Fed in February. Advanced Michigan Consumer Sentiment only due later in the docket. The greenback, when tracked by the USD Index (DXY), advances marginally on Friday following a marked drop to the 102.00 neighbourhood in the previous session. (FXStreet)

GBP/USD is seen oscillating in a narrow trading band through the early European session on Friday. A modest USD recovery from a multi-month low acts as a headwind amid dovish BoE expectations. The mixed UK macro data fails to impress traders or provide any meaningful impetus to the major. (FXStreet)

USD/CAD has picked strength amid caution in the market mood, however the overall sentiment is still positive. Federal Reserve is likely to trim the pace of policy tightening due to a downward trend in US inflation. A sheer recovery in oil prices led by expectations of economic recovery in China may strengthen the Canadian Dollar. USD/CAD is likely to continue its downside journey toward the horizontal support plotted at 1.3226. (FXStreet)

EUR/USD has slipped marginally to near 1.0860 as the strength of the risk-on mood has eased. Fed Bostic has favored a 25 bps rate hike culture amid slowing US inflation. The ECB is expected to reach the terminal rate by the Summer. (FXStreet)

NZD/USD takes offers to pare weekly gains strong China trade figures. China Customs fail to cheer the strong trade volume in 2022 as figures jumped 40 trillion Yuan. Weekly resistance line guards immediate upside, 100-HMA probes bears. MACD, RSI also favor the pullback moves despite firmer China trade numbers for 2022. (FXStreet)

AUD/USD retreats from a multi-month high touched on Thursday amid a modest USD uptick. Rebounding US bond yields and a softer risk tone helps revive demand for the safe-haven buck. Rising bets for smaller Fed rate hikes should cap the USD and limit the downside for the major. (FXStreet)

USD/INR has displayed a responsive buying action amid a recovery in US Treasury yields. The 20-and 50-EMAs are on the verge of delivering a bearish crossover around 82.15. A bearish range shift by the RSI (14) has triggered the downside momentum. (FXStreet)

Oil prices have turned sideways after failing to extend recovery to near $80.00. The black gold price has not run out of steam as the US administration is ceasing oil supply to China. Falling US inflation has triggered odds of a slowdown in the pace of the Fed’s policy tightening. (FXStreet)

Natural gas prices charted an inconclusive session on Thursday in tandem with a small uptick in open interest and diminishing volume. Against that, extra consolidation appears the most likely scenario for the commodity for the time being, with decent contention around the $3.50 mark per MMBtu. (FXStreet)

Gold price remains firmer around multi-month high, fades upside momentum of late. Challenges to sentiment, market’s post-inflation consolidation probe XAU/USD bulls. Further upside hinges on successful break of $1,918 and more clues for Fed’s next moves. (FXStreet)

Silver is seen consolidating in a narrow trading band below the $24.00 mark on Friday. The recent two-way price moves warrant some caution before placing directional bets. A convincing break below the 200-SMA on H4 should pave the way for deeper 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.