Market Update - 17 February  2023

There is room for the USD rebound to extend further. Therefore, economists at MUFG Bank expect the EUR/USD pair to challenge the 200-Day Moving Average (DMA) at around 1.0330. (FXStreet)

USD/JPY gained nearly 300 pips last week. On Friday, BoJ Governor nominee Ueda speaks. Hints of change to the BoJ's ultra-dovish monetary policy could pummel the USD/JPY pair, economists at ING report. (FXStreet)

The GBP/USD pair has printed a fresh day high at 1.2045 in the early London session. The Cable is looking to extend its gains to 1.2050 as the risk-off impulse has faded away despite no negative development on the US-China tensions and three missiles launched by North Korea near Japan’s region. The US Dollar Index (DXY) has refreshed its day low at 103.52 as investors ignored the fears of persistent inflation and a robust labor market in the United States. S&P500 futures have recovered their entire losses and are looking to shift into a positive trajectory amid the risk appetite theme. (FXStreet)

The AUD/USD pair builds on Friday's goodish rebound from the vicinity of the 0.6800 mark, or its lowest level since January 6, and gains strong follow-through traction on the first day of a new week. The pair maintains its bid tone through the early part of the European session and is currently placed around the 0.6900 mark, just a few pips below the daily high. (FXStreet)

USD/CAD bulls take a breather around 1.3480, following the run-up to refresh the monthly high, as the upside momentum failed to cross the key resistance confluence the previous day. Even so, the Loonie pair remains on the buyer’s radar on early Monday as it defends the previous week’s upside break of the 50-DMA, close to 1.3465 at the latest. It’s worth mentioning that the 50-DMA breakout joins the bullish MACD signals, as well as the upbeat RSI (14), not overbought, to keep the USD/CAD buyers hopeful. (FXStreet)

USD/CHF flirts with the intraday low surrounding 0.9240 amid early Monday in Europe. In doing so, the major currency pair remains pressured toward the previous resistance line from late November 2022. However, a light calendar and holiday in the US, as well as in Canada, restrict immediate moves of the Swiss Franc (CHF) pair. (FXStreet)

EUR/GBP holds lower ground near 0.8880 during the early Monday morning in Europe. In doing so, the cross-currency pair fades bounce off the 200-HMA and eight-day-old horizontal support. Also teasing the pair sellers is the lower high formation, marked since February 07. However, the aforementioned support line, close to 0.8875 at the latest, precedes the 200-Hour Moving Average (HMA) level surrounding 0.8865, to put a floor under the EUR/GBP prices. (FXStreet)

NZD/USD seesaws around 0.6240 as it struggles to push back the bearish bias after a four-day losing streak, keeping the bounce off a six-week low during early Monday morning in Europe. In doing so, the Kiwi pair portrays the traders’ cautious mood ahead of the key Reserve Bank of New Zealand (RBNZ) monetary policy meeting and the Minutes of the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting. (FXStreet)

USD/MXN remains pressured around the lowest level in nearly five years as it drops to $18.33 during early Monday, keeping Friday’s fall to the multi-day bottom during a three-day downtrend. In doing so, the Mexican Peso (MXN) pair cheers the retreat in the US Dollar amid a light calendar and the US holidays. Adding strength to the lackluster moves could be the cautious mood ahead of this week’s top-tier data from the US and Mexico, as well as mixed headlines surrounding the geopolitical risks emanating from Russia, China and North Korea. (FXStreet)

USD/INR takes offers to refresh intraday low near 82.65 during the initial Indian trading session on Monday. In doing so, the Indian Rupee (INR) pair justifies the early day’s downside break of a one-month-old ascending trend line to print the first daily loss after witnessing four consecutive weeks of a run-up. (FXStreet)

GBP/JPY grinds higher around 161.60 during early Monday, struggles to extend intraday gains amid dicey markets. In addition to the sluggish sentiment, geopolitical fears emanating from China and North Korea, as well as Brexit woes, also probe the cross-currency buyers. Even so, upbeat US Treasury bond yields and easing hawkish bias about the Bank of Japan (BoJ) seem to put a floor under the Yen price. (FXStreet)

EUR/JPY was driven out of the bull trend last week but failed to break any significant structure to the downside so has moved sideways above the 142.80s, trapping both shorts and longs in the process. This trapped volume has the potential to result in a breakout one way or the other week. (FXStreet)

The AUD/JPY pair has picked strength after a weak open around 92.10 in the Tokyo session. The risk barometer has recovered to near 92.30 and is looking to extend its rebound move ahead. However, the risk profile seems not to support the risk-perceived assets after the US ambassador to the United Nations, Ambassador Linda Thomas-Greenfield, said Sunday that China would cross a “red line” if the country decided to provide lethal military aid to Russia for its invasion of Ukraine. (FXStreet)

WTI prices extended the leg lower for yet another session on Friday. The daily decline, however, was in tandem with declining open interest, which hints at the view that probable rebound could be in the offing. The next target of note on the upside emerges at the February high at $80.57 (February 13). (FXStreet)

Gold price edges higher on the first day of a new week and looks to build on Friday's bounce from the $1,819-$1,818 area, or the YTD low. The XAU/USD sticks to its modest intraday gains through the early European session and is currently placed just above the $1,845 region, albeit seems to lack bullish conviction. (FXStreet)

Silver price (XAG/USD) has delivered a vertical fall to near $21.55 in the Tokyo session. The white metal tumbled like a house of cards as the escalating geopolitical tensions strengthened the risk aversion theme. Silver price is expected to continue its downside momentum as the fears of a recovery in the United States inflation have joined the US-China tensions. (FXStreet)

Subdued upward momentum associated with the recent jump suggests Bitcoin’s rally is showing some signs of fatigue as it tests a tough hurdle. BTC/USD hit an eight-month high on Thursday and is now testing a crucial ceiling at the August 2022 high of 25200, near the 200-week moving average (now at about 24925). BTC/USD needs to clear the 24650-25200 area for the medium-term downward pressure to ease. (DailyFX)

Source: FXStreet, DailyFX

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