Market Update - 14 February  2023

EUR/USD climbs to 2-day highs near 1.0750. Flash EMU Q4 GDP due later in the domestic docket. US inflation figures take centre stage later in the NA session. The European currency extends the auspicious start of the week and pushes EUR/USD to the area of 2-day peaks near 1.0750 on Tuesday. (FXStreet)

GBP/USD scales higher for the second straight day and is supported by a combination of factors. The better-than-expected UK jobs data benefits the British Pound amid sustained  USD selling. The upside potential, however, seems limited ahead of the crucial US consumer inflation data. (FXStreet)

As expected, the Japanese government nominated Kazuo Uedo to become the next governor of Bank of Japan (BoJ) on Tuesday. Former Financial Services Agency (FSA) chief Ryozo Himino and career central banker and BoJ executive Shinichi Uchida are also nominated as the two deputy governors. USD/JPY showed no immediate reaction to this development and was last seen moving sideways at around 132.00. (FXStreet)

The Reserve Bank of New Zealand reported that the Inflation Expectations for the first quarter dropped to 3.3% from 3.62%. NZD/USD lost its traction after this data and turned negative on the day below 0.6350. (FXStreet)

AUD/USD lacks any firm intraday direction and oscillates in a narrow range on Tuesday. Recession fears seem to cap the risk-sensitive Aussie, though a weaker USD lends support. Traders keenly await the US consumer inflation data for January before placing fresh bets. (FXStreet)

USD/CAD gains some positive traction on Tuesday, though lacks bullish conviction. Subdued crude oil prices undermine the Loonie and act as a tailwind for the pair. The ongoing USD retracement slide from a multi-month top caps any further gains. Traders also seem reluctant and prefer to wait for the release of the US CPI report. (FXStreet)

USD/CHF takes offers to renew intraday low, stretching pullback from weekly top. Clear downside break of short-term key trend line, SMA joins downbeat oscillators to favor bearish bias. Recovery remains elusive unless crossing five-week-old resistance line. (FXStreet)

EUR/GBP reverses bounce off key support confluence on strong UK employment data. UK Unemployment Rate stays unchanged but Claimant Count Change drops. Divergence between ECB and BoE policymakers may recall pair buyers if EU Q4 GDP improves. (FXStreet)

GBP/JPY reverses an intraday dip to the 160.00 neighbourhood, though lacks follow-through. The monthly upbeat UK jobs data underpins the Sterling and acts as a tailwind for the cross. Recession fears, expectations for a hawkish shift by the BoJ benefit the JPY and caps gains. (FXStreet)

Hong Kong’s de facto central bank bought local dollars to defend its peg to the greenback for the first time since November, as a slump in bank borrowing costs made shorting the city’s currency a popular trade. The Hong Kong Monetary Authority purchased HK$4.2 billion ($538 million) worth of local dollars. The operation will reduce the city’s aggregate balance, a gauge of interbank liquidity, to HK$91.86 billion on February 15. This move could potentially drive up local funding costs and squeezing the bearish trades. (Bloomberg)

Gold price failed to stage a rebound on Monday and registered its lowest daily close in a month slightly above $1,850 as the 10-year US T-bond yield held steady at around 3.7%. Early Tuesday, XAU/USD stages a technical correction and stays in positive territory above $1,860. (FXStreet)

Silver extends its sideways consolidative price move around the $22.00 mark on Tuesday. The technical setup favours bearish traders and supports prospects for additional losses. A sustained break below the 100-day SMA support is needed to confirm the negative bias. (FXStreet)

The index remains side-lined around the 103.00 region. Bullish attempts appear capped by the 104.00 area so far. All the attention will be on the release of US CPI later in the session. The greenback, in terms of the USD Index (DXY), struggles to find footing near the 103.00 zone on turnaround Tuesday. (FXStreet)

It may be too soon to conclude that the worst for US natural gas prices is over. But a minor rebound or an extended range is plausible in the interim. To be sure, beyond the hourly timeframes, the trend remains down across multiple timeframes. Indeed, as arecent update highlighted, a major double-top pattern (the 2022 highs) triggered at the end of last year points to further downside, potentially toward the 2020 low of around 1.45 (see weekly chart). (DailyFX)

The Market Perspective: Crude Oil Range Between 82.50 and 72.50. US-based WTI crude futures have moved up to trendline resistance that stretches back 8 months, but both retail and large speculative interests seem to believe in the ceiling. The correlation between US oil and USDCAD is an assumed common, negative relationship; but this Dollar-pair is one of the less responsive pairs to recent CPI volatility. (DailyFX)

Bitcoin dropped to its lowest level in nearly three weeks below $21,400 on Monday but erased its losses to close the day flat. Early Tuesday, BTC/USD trades flat slightly below $21,800. Ethereum registered small losses on Monday and trades within a touching distance of $1,500 on Tuesday. (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.