Market Update - 23 February 2023

EUR/USD remains under pressure and breaches 1.0600. EMU Final inflation figures next of note in the calendar. Q4 GDP takes centre stage in the US docket. Sellers keep the price action around the European currency subdued and prompt EUR/USD to pierce the 1.0600 support to clock new multi-week lows on Thursday. (FXStreet)

USD/CAD retreats from its highest level since January and is pressured by a combination of factors. A modest recovery in Oil prices undermines the Loonie and prompts some selling amid a softer USD. Bets for additional Fed rate hikes, recession fears should help limit the USD losses and lend support. (FXStreet)

NZD/USD attracts some buying in the vicinity of a technically significant 200-day SMA. A positive risk tone undermines the USD and lends support to the risk-sensitive Kiwi. Recession fears, bets for more Fed rate hikes limit the USD losses and cap the major. (FXStreet)

GBP/USD regains positive traction amid a modest USD pullback from a multi-month top. Signs of stability in the equity markets turn out to be a key factor weighing on the buck. Bets for additional BoE rate hikes underpin the GBP and remain supportive of the uptick. Hawkish Fed expectations, looming recession risks to limit the USD losses and cap the pair. (FXStreet)

AUD/USD picks up bids to defend the bounce off key DMA, pokes five-week-old previous support. Bearish MACD signals, downbeat RSI keeps sellers hopeful. Buyers need to cross 0.6975 to retake control. (FXStreet)

USD/JPY fades bounce off intraday low, prints mild losses to snap four-day uptrend. Treasury bond yields remain lackluster on Japan holiday. Retreat in US inflation expectations joins mixed geopolitical, Fed headlines to probe momentum traders. (FXStreet)

EUR/GBP looks vulnerable around 0.8800 as hawkish BoE bets soar after a recovery in UK preliminary PMI data. UK’s Hunt is facing calls from within his Conservative Party to cut taxes and raise pay for public service workers. ECB Lagarde is set to continue its policy tightening spell of 50 bps to March. (FXStreet)

USD/CHF retreats from weekly top, snaps two-day winning streak. Cautious optimism prevails as US President Biden thinks no imminent fears of nuclear use in Russia-Ukraine war. Easing US inflation expectations also favor pullback moves amid off in Japan. (FXStreet)

USD/INR is displaying wild moves as investors are discounting the impact of the release of the overnight FOMC minutes. Fed policymakers are favoring the continuation of policy tightening to avoid fears of a recovery in US inflation. The asset is testing the breakout of the Descending Triangle chart pattern around 82.70. (FXStreet)

USD/MXN grinds near the lowest levels since April 2018. Nearly oversold RSI conditions challenge bears on their way to three-month-old support line. Two-week-long descending trend line challenges bulls before $18.50 resistance confluence. Sustained trading below the key trend line, moving average joins bearish MACD signals to favor sellers. (FXStreet)

EUR/JPY is expected to deliver a downside move below 143.00 ahead of BoJ Ueda’s speech. Some further yield-widening discussions are expected from BoJ Ueda’s speech. ECB Lagarde’s announcement of one more 50 bps rate hike will push rates to 3.5%. (FXStreet)

USD/TRY struggles for clear directions after two-day downtrend. Turkish government announces economic support for quake-hit areas. CBRT expected to leave benchmark rates unchanged for the fourth consecutive month. US Dollar struggles to justify hawkish Fed bets, geopolitical fears amid sluggish session. (FXStreet)

USD/ZAR is currently hovering around 18.200, finding support above the psychological level of 18.00. With the emerging market (EM) currency currently on track to achieve six consecutive weeks of gains, the resilient US economy has helped drive the pair lower. As South Africa continues to suffer from hours of planned electricity outages (known as load shedding), the country has succumbed to the effects of declining productivity. (DailyFX)

WTI prints mild gains at a fortnight low, snaps two-day downtrend. Previous support line, 50-DMA guards immediate upside while bearish MACD signals lure sellers. RSI conditions suggest limited downside room and highlight seven-week-long horizontal support. (FXStreet)

The index meets some initial resistance in the 104.50 region. FOMC Minutes noted some members favoured a 50 bps rate hike. Another revision of Q4 GDP, Initial Claims next on tap in the docket. The USD Index (DXY), which gauges the greenback vs. a basket of its main competitors, struggles for direction in the mid-104.00s on Thursday. (FXStreet)

Gold price triggered another bearish run after FOMC Minutes showed a somewhat hawkish stance. US Dollar stays dominant across the board ahead of US Gross Domestic Product second estimate for Q4. PCE disinflation should continue, but any surprise could have a notable impact on Gold. (FXStreet)

Silver regains positive traction on Thursday and reverses a part of the overnight slide. The formation of a rectangle on the daily chart marks a bearish consolidation phase. A sustained break below the 50% Fibo. level will set the stage for a further downfall. (FXStreet)

Oil edged higher — after the longest run of losses this year — as the dollar fell and traders took stock of a mixed demand outlook dominated by tightening US monetary policy and China’s reopening. West Texas Intermediate rose above $74 a barrel after slumping around 3% on Wednesday following Federal Reserve minutes that showed further interest-rate hikes are expected to combat inflation. That’s overshadowed more evidence of a robust rebound in China’s demand after it scrapped Covid Zero curbs last last year. A weaker dollar makes crude cheaper for most buyers. (Bloomberg)

Bitcoin lost more than 1% on Wednesday after having failed to stabilize above $25,000. BTC/USD edges higher early Thursday and trades near $24,400. Following a two-day slide, Ethereum rises toward $1,700 and is up more than 1% on the day. (FXStreet)

Palladium prices are heading for a third consecutive weekly losing streak, with the rare metal down about 0.7% so far. Last week, prices confirmed a breakout under the 2021 low at 1531, exposing the 2020 bottom at 1355. Broadly speaking, palladium has been aiming lower since finding a top in March 2022 at 3425. Since then, a falling trendline from then has been guiding prices lower, maintaining the dominant downside focus. (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.