Market Update - 03 February 2023

GBP/USD remains under some selling pressure for the second successive day on Friday. A dovish assessment of the BoE decision weighs on the GBP amid a modest USD strength. A break below the 1.2200 mark might have set the stage for further losses ahead of NFP. (FXStreet)

USD/CAD gains traction for the second straight day and is supported by a combination of factors. Sliding crude oil prices undermines the Loonie and acts as a tailwind amid a modest USD strength. Traders now look forward to the closely-watched US monthly jobs data (NFP) for a fresh impetus. (FXStreet)

USD/JPY oscillates in a narrow range and is influenced by a combination of diverging forces. A modest USD uptick lends support, though weaker US bond yields cap gains ahead of NFP. Expectations for a hawkish shift by the BoJ underpin the JPY and further act as a headwind. (FXStreet)

The index looks to extend the post-ECB rebound. January Nonfarm Payrolls will take centre stage later. Other key data includes the ISM Non-Manufacturing. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rivals, advances slightly and retargets the key 102.00 barrier at the end of the week. (FXStreet)

USD/CHF is oscillating in a narrow range below 0.9150 as volatility squeezes ahead of US NFP data. The demand for US government bonds is accelerating as the street is considering continuation price index softening. SNB Jordan has confirmed further interest rate hikes amid rising inflationary pressures. (FXStreet)

EUR/USD is gauging a cushion around 1.0900 despite the negative market mood. A bear cross, represented by the 20-and 50-EMAs around 1.0927, adds to the downside filters. The RSI (14) has shifted into the bearish range of 20.00-40.00, which indicates more weakness ahead. (FXStreet)

AUD/USD edges lower for the second successive day, though lacks follow-through selling. A modest USD strength and the cautious market mood weigh on the risk-sensitive Aussie. Traders keenly await the release of the closely-watched US monthly jobs data (NFP report). (FXStreet)

NZD/USD is expected to display back-and-forth action ahead of the US NFP release. The Symmetrical Triangle formation is hinting a sheer volatility squeeze. A range shift by the RSI (14) into the 40.00-60.00 zone from the bullish range of 60.00-80.00 indicates a consolidation ahead. (FXStreet)

The oil price has printed a fresh intraday low at $75.80 amid a risk-off market mood ahead of US NFP data. West Texas is auctioning in a markdown phase after Wyckoff’s Inventory Distribution breakdown. The 50-period EMA is acting as a major barrier for the oil bulls. (FXStreet)

There is no respite in the downtrend of natural gas prices. Thursday’s negative price action came in tandem with another increase in open interest, leaving the door open to the continuation of the underlying bearish trend. However, the current oversold conditions of the commodity (as per the RSI around 25) could spark a technical bounce in the short term (FXStreet)

Thursday’s strong decline in gold prices came in tandem with shrinking open interest. That said, a sustained retracement looks unlikely in the very near term, while the recent support in the $1900 region per ounce troy should hold the downside for the time being. (FXStreet)

Silver edges higher on Friday, albeit the intraday uptick lacks follow-through. The overnight failure near the $24.50 supply zone warrants caution for bulls. Sustained break below the $23.00 mark is needed to confirm negative bias. (FXStreet)

Source: FXStreet, DailyFX

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