Market Update - 22 February  2023

EUR/USD edged lower and closed in negative territory at around 1.0650 on Tuesday. However, economists at ING expect the pair to move back higher toward 1.0700-50 before the weekend. Support around 1.0640-1.0660 is enough of an encouraging sign. (FXStreet)

USD/JPY bulls take a breather as the quote drops to 134.70 while printing the mild losses, the first in four days, during early Wednesday. In doing so, the Yen pair portrays a U-turn from the upward-sloping resistance line from late December 2022. (FXStreet)

The GBP/USD pair comes under some selling pressure following an early uptick to the 1.2135 region and drops to a fresh daily low during the first half of the European session. Spot prices currently trade around the 1.2080-1.2075 region, down nearly 0.30% for the day, and for now, seem to have snapped a three-day winning streak. (FXStreet)

The AUD/USD pair adds to the previous day's heavy losses and remains under some selling pressure for the second successive day on Wednesday. The steady intraday descent extends through the early European session and drags spot prices to the 0.6825-0.6820 area, back closer to the lowest level since January 6 touched last week. (FXStreet)

The USD/CAD pair attracts some buying for the second straight day on Wednesday and touched its highest level since January 6 during the first half of the European session. The pair currently trades around the 1.3550 region and seems poised to prolong its recent upward trajectory witnessed over the past week or so. (FXStreet)

USD/CHF seesaws around 0.9265 as it consolidates the previous day’s gains with mild losses heading into Wednesday’s European session. In doing so, the Swiss Franc (CHF) pair makes a U-turn from the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, to pare the biggest daily jump since early February. (FXStreet)

The EUR/GBP cross enters a bearish consolidation phase and oscillates in a narrow trading band near a fresh monthly low touched earlier this Wednesday. The cross is currently placed just below the 0.8800 mark and seems vulnerable to extending its recent retracement slide from its highest level since September 2022 touched earlier this month. (FXStreet)

USD/KRW is defending the $1,300 mark on the above comments, trading 0.24% lower on the day at $1,303, as of writing. The pair jumped to the highest level in two months at $1,314.53 on a broad-based US Dollar strength. (FXStreet)

GBP/JPY bulls take a breather around 163.30, after rising the most in seven days during early Wednesday. The cross-currency pair’s latest gains could be linked to the upbeat UK data and hawkish concerns surrounding the Bank of England (BoE). However, sluggish yields and the Bank of Japan (BoJ) concerns seem to exert downside pressure on the GBP/JPY prices. Also likely to challenge the pair’s moves are the mixed data from the UK and Japan. (FXStreet)

NZD/USD has turned sideways around 0.6230 in the early European session after wild movements showed post-hawkish monetary policy by the Reserve Bank of New Zealand (RBNZ). Volatility in the Kiwi asset has squeezed dramatically as investors have shifted their focus towards the release of the Federal Open Market Committee (FOMC) minutes, which are scheduled in the late New York session. (FXStreet)

USD/TRY slides to $18.81, retreating from the all-time high marked the previous day, as the US Dollar eases ahead of the key Federal Open Market Committee’s (FOMC) Monetary Policy Meeting Minutes. Adding strength to the pullback moves could be the Turkish Lira (TRY) traders’ cautious mood before Thursday’s Central Bank of the Republic of Türkiye (CBRT) Interest Rate Decision. (FXStreet)

The USD/INR pair is attempting to surpass the immediate resistance of 82.80 in the Asian session. The asset is expected to yet discount the impact of the overnight jump in the US Treasury yields, supported by upbeat preliminary S&P United States PMI data. (FXStreet)

NZD/JPY bulls flirt with the 84.00 threshold, after cheering a jump to 84.22, as they reassess the Reserve Bank of New Zealand (RBNZ) headlines early Wednesday. Also challenging the pair buyers could be the recently sluggish Treasury bond yields. (FXStreet)

AUD/NZD slumps nearly 60 pips to 1.0980 during early Wednesday morning in Europe as the Reserve Bank of New Zealand (RBNZ) announced its much-awaited interest rate decision. In doing so, the cross-currency pair ignores geopolitical fears surrounding Chin and North Korea, as well as fears of less hawkish RBNZ move due to the natural calamities in New Zealand. (FXStreet)

WTI crude oil takes offers to extend the previous day’s losses to $76.00, refreshing the intraday low amid early Wednesday in Europe. In doing so, the black gold breaks a two-week-long ascending trend line, currently around $76.10. (FXStreet)

Natural gas prices are off to a rough start this week, which in recent memory, is not something out of the ordinary. Following a very brief pause in early February, the commodity is now aiming for a second consecutive weekly loss. If we ignore the negligible 4.32% rise in early February, natural gas is practically heading for a 10th weekly loss. You would have to go back to 2001 to find the same losing streak. This is bringing lows from 2020 closer into view. (DailyFX)

Gold price (XAU/USD) probes a two-day downtrend as it treads water around $1,835 during early Wednesday. In doing so, the bright metal remains inside the one-week-old trading range of around $30.00 as traders await the Federal Open Market Committee’s (FOMC) Monetary Policy Meeting Minutes. It’s worth noting that the geopolitical fears and the US Dollar’s lackluster moves around the multi-day top seem to add filters to the XAU/USD traders. (FXStreet)

Silver struggles to gain any meaningful traction on Wednesday and oscillates in a narrow trading range through the early European session. The white metal remains below the $22.00 round-figure mark and the technical setup still seems tilted in favour of bearish traders. (FXStreet)

The gradual drift lower in the Hang Seng Index (HSI) reflects some of the unwindings of extreme overbought conditions. While the index could have a bit more downside in the near term, it is too soon to conclude that the uptrend has reversed. (DailyFX)

Source: FXStreet, DailyFX

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