Market Update - 21 February  2023

Sellers seem in control of the sentiment around the European currency and drag EUR/USD back to the 1.0670/60 region on Tuesday. EUR/USD extends the pessimism seen at the beginning of the week and trades slightly on the defensive on Tuesday on the back of the mild recovery in the greenback, as US markets return to the usual activity following Monday’s holiday. (FXStreet)

USD/JPY seesaws around intraday high near 134.40 as bulls keep the reins for the third consecutive day amid early Tuesday morning in Europe. In doing so, the Yen pair also prints mild gains near the highest levels in two months, poked on Friday. (FXStreet)

The GBP/USD pair comes under some selling pressure on Tuesday and stalls its recent recovery from the 1.1915 area, or the lowest level since January 6, touched last week. Spot prices remain on the defensive through the early European session, though manage to hold above the 1.2000 psychological mark, at least for the time being. (FXStreet)

The AUD/USD pair comes under some renewed selling pressure on Tuesday and reverses a major part of the previous day's positive move. The pair remains depressed below the 0.6900 mark through the first half of the European session and for now, seems to have stalled the recent bounce from its lowest level since January 6 touched last Friday. (FXStreet)

The USD/CAD pair attracts fresh buying near the 1.3445-1.3440 horizontal support zone and continues scaling higher through the early part of the European session. Spot prices reverse the previous day's downfall, with bulls now awaiting a sustained move beyond the 1.3500 psychological mark before placing fresh bets. (FXStreet)

USD/CHF remains mildly bid around 0.9240, despite recently easing from the intraday high, as the Swiss pair (CHF) traders benefit from the US Dollar rebound amid sour sentiment. It’s worth noting, however, that the cautious mood ahead of the key data/events favors the USD/CHF buyers. (FXStreet)

EUR/GBP holds lower ground around 0.8870, after recently reversing from the daily top, as bears keep the reins for the third consecutive day to early Tuesday in Europe. In doing so, the cross-currency pair portrays the broad retreat in the Euro, as well as the recovery in the British Pound (GBP), ahead of the key data for the bloc and Britain. (FXStreet)

The GBP/JPY cross edges higher for the third straight day on Tuesday and sticks to its mildly positive bias through the early European session. The cross is currently placed just above the 161.50 area and remains well within the striking distance of a nearly two-month high touched last week. (FXStreet)

The NZD/USD pair has slipped below 0.6240 in the early European session. The Kiwi asset is expected to continue its downside movement as anxiety among investors is soaring ahead of the opening of the US markets after an extended weekend. (FXStreet)

The USD/INR pair is approaching 82.80 as the US Dollar Index (DXY) has rebounded firmly amid the risk-off market mood. Investors are channelizing their funds into the USD Index amid rising uncertainty ahead of the US opening after an elongated weekend. (FXStreet)

EUR/JPY is flat in Tokyo and sticking to the opening ranges for the week following a low liquidity day in the US holiday markets. However, from a technical standpoint, the coiled conditions could be the foundations for some explosive moves in the forthcoming days. (FXStreet)

The EUR/GBP pair is displaying a sideways auction in a narrow range of 0.8870-0.8890 in the Tokyo session. The cross has turned sideways as investors are awaiting the release of the preliminary PMI figures for the Eurozone and the United Kingdom for further impetus. (FXStreet)

The AUD/JPY pair has climbed to near 93.00 in the Tokyo session after observing a hawkish stance from the minutes released by the Reserve Bank of Australia (RBA). The message from the RBA minutes is clear that more interest rates are warranted as strong consumer demand is not allowing Australian inflation to soften from its peak. (FXStreet)

The Swedish Krona eased slightly today after having a blistering rally yesterday with EUR/SEK hitting a 2-month low. The Riksbank monetary policy meeting minutes revealed a very hawkish tone and core CPI data was higher than anticipated for January, coming in at 0.4% m/m rather than -0.2% anticipated. (DailyFX)

The downward pressure on natural gas continued unabated with prices falling to a new 20-month low on Monday. Even then, there is no sign of a reversal of the downtrend. However, on some measures, the slide is beginning to look stretched. (DailyFX)

Gold price (XAU/USD) retreats towards the previous weekly low, also the lowest since late December, as risk aversion joins the return of full markets to underpin the US Dollar. Adding strength to the greenback, as well as weighing on the XAU/USD, could be the upbeat US Treasury bond yields. (FXStreet)

Silver price (XAG/USD) remains depressed around $21.70 during the first loss-making day in three heading into Tuesday’s European session. In doing so, the bright metal portrays a clear reversal from the 200-Hour Moving Average (HMA), as well as the 50% Fibonacci retracement level of its moves between February 09 and 17. (FXStreet)

Ethereum is pushing higher and is set to test levels last seen in mid-September last year. The second largest cryptocurrency by market cap has tried and failed, to conclusively break above the $1,680 level over the last month, but the latest test looks more promising. A series of higher lows over the last month, combined with resistance around $1,680 has produced a bullish triangle pattern which is set to be broken as we near its apex. (DailyFX)

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.