Market Update - 10 February  2023

EUR/USD is expected to deliver more downside to near 1.0700 amid the risk-aversion theme. The USD Index has got strength as investors are worried about higher interest rates by the Federal Reserve. European Central Bank is still favoring a continuation of a bumper policy tightening spell despite softened German Inflation. EUR/USD is struggling to find direction beyond the 50% and 61.8% Fibo retracements gamut. (FXStreet)

EUR/GBP gains some traction and snaps a four-day losing streak to over a one-week low. A rather unimpressive UK GDP report remains supportive of the modest intraday uptick. Signs of easing inflationary pressures in the Eurozone keep a lid on any further gains. (FXStreet)

NZD/USD has printed a fresh day low at 0.6315 on lower-than expected China CPI data. China’s PPI has reported a deflation by 0.8% higher than the projections of 0.5% and the former release of 0.7%. The upbeat US labor market could propel consumer spending ahead. (FXStreet)

USD/JPY is marching towards 132.00 amid a risk-off mood propelled ahead of US inflation data. The US inflation could display an upside surprise as the jobless rate is at a multi-decade low. Japan’s government might reveal the new BoJ governor nominee and two deputy governor nominees on Feb. 14 (FXStreet)

GBP/USD remains sidelined after reversing from weekly top, prints mild losses to defy three-day winning streak. Cautious mood ahead of key US data, recession woes and BoE talks weigh on Cable pair. Downbeat Fedspeak, softer US data allow GBP/USD to grind higher. Preliminary readings of UK Q4 GDP, US consumer-centric data for January eyed for clear directions. (FXStreet)

GBP/JPY clings to mild losses following UK data dump. Preliminary readings of UK Q4 GDP matches 0.0% market forecasts. Yield curve inversion renews recession woes but BoJ talks defend pair buyers. Concerns surrounding the next BoJ leadership, economic slowdown fears are the key to follow for fresh impulse. (FXStreet)

USD/CAD pauses two-day uptrend but remains sidelined amid cautious markets. Oil price struggles amid recession woes, softer US Dollar. Canada employment data will be crucial after BoC’s Macklem teased a pause in rate hikes. Preliminary readings of US Michigan Consumer Sentiment, 5-year inflation expectations eyed to forecast next week’s US inflation data. (FXStreet)

AUD/USD picks up bids to rebound from intraday low amid sluggish markets. Traders pare recent losses amid market’s cautious mood ahead of the key US data. RBA SoMP, China inflation numbers failed to impress AUD/USD traders. Mixed plays of recession and central bank talks offer inactive session ahead of US consumer-centric data. (FXStreet)

AUD/JPY has slipped sharply from 91.40 despite RBA continuing a hawkish monetary policy ahead. Australian inflation has driven higher in December led by rising fuel prices, series demand, and electricity prices. Japan’s government is planning to announce the new BoJ governor nominee and two deputy governor nominees on Feb. 14. (FXStreet)

USD/MXN pares Banxico-led losses ahead of US consumer-centric data. Banxico surprised markets with 0.50% rate hike versus 25 bps expected. Recession fears seem to underpin US Dollar rebound after Fed talks, US statistics weighed on the greenback. US Michigan Consumer Sentiment Index, inflation expectations eyed ahead of next week’s US CPI. (FXStreet)

USD/INR remains sidelined between four-month-old resistance line and 50-DMA. A convergence of 100-DMA, ascending trend line from late January appears a tough nut to crack for the pair sellers. Indian Rupee sellers need successful break of 82.80 to retake control. (FXStreet)

USD/CNH has sensed selling pressure and dropped from around 6.8000 as China’s monthly CPI shows deflation. Deflation in China’s monthly CPI and PPI might compel authorities to keep the policy expansionary. The USD Index is aiming to reclaim the critical resistance of 103.00 as the market mood is quite risk-averse. (FXStreet)

The index regains some poise following Thursday’s strong sell-off. Further consolidation appears likely below the 104.00 region. The Flash Consumer Sentiment, Fed’s Waller, Harker come later. The USD Index (DXY), which tracks the greenback vs. a bundle of its main rival currencies, navigates with humble gains in the 103.30 region ahead of the opening bell in the old continent on Friday. (FXStreet)

Considering advanced prints from CME Group for crude oil futures markets, open interest shrank by around 2.5K contracts on Thursday, reversing at the same time the previous daily build. Volume followed suit and dropped for the second session in a row, now by around 62.6K contracts. (FXStreet)

Gold price remains sidelined within short-term key trading range amid contradicting fundamentals, cautious mood. Fed policymakers seem less interested in backing aggressive rate hikes amid mixed employment data. Recession woes underpin US Dollar demand and weigh on XAU/USD ahead of the key US consumer-centric statistics. (FXStreet)

Silver price portrays corrective bounce near 10-week low. Clear downside break of weekly trading range, sustained trading below 200-HMA favor XAG/USD sellers. Silver buyers should remain cautious unless renewing monthly high. (FXStreet)

Source: FXStreet, DailyFX

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