Market Update - 02 March 2023

USD/CAD gains some positive traction on Thursday, albeit lacks strong follow-through buying. An uptick in Crude Oil prices underpins the Loonie and keeps a lid o the intraday positive move. Hawkish Fed expectations, rising US bond yields boost the USD and continue to act as a tailwind. (FXStreet)

GBP/USD meets with a fresh supply on Thursday amid a strong pickup in the USD demand. Hawkish Fed expectations continue to push the US bond yields higher and underpin the USD. A sustained break below the 200-day SMA is needed to support prospects for deeper losses. (FXStreet)

The index leaves behind part of Wednesday’s marked pullback. US 2-year yields approach the key 5% level, nearly 6-year tops. Weekly Claims, FOMC Waller take centre stage later in the US docket. The greenback, in terms of the USD Index (DXY), manages to regain some balance and advances to the 104.80 region on Thursday. (FXStreet)

USD/JPY catches fresh bids and climbs back closer to the YTD peak amid resurgent USD demand. Hawkish Fed expectations push the US bond yields higher and provide a fresh lift to the Greenback. The divergent Fed-BoJ policy outlook favours bullish traders and supports prospects for further gains. (FXStreet)

EUR/USD extends pullback from one-week high, pares the biggest daily gains in a month. Strong US Treasury bond yields join risk-negative headlines to renew US Dollar demand. Upbeat German inflation, hawkish ECB rhetoric puts a floor under the Euro price. Flash readings of Eurozone HICP and CPI will precede ECB President Lagarde’s speech to entertain EUR/USD traders. (FXStreet)

EUR/GBP is looking to reclaim the 0.8900 resistance as ECB looks set to deliver one more 50 bps rate hike. Apart from the German economy, Spain and France have also reported higher-than-anticipated inflation figures. The street is not considering the novel UK-EU deal as a critical driver for the Pound Sterling. (FXStreet)

USD/CHF picks up bids to reverse the previous day’s losses. Sustained trading above the key Fibonacci retracement, upbeat oscillators join bullish chart pattern to favor buyers. Sellers have a bumpy road to face on their return, 0.9345 appears short-term key support. (FXStreet)

AUD/USD takes offers to extend pullback from late February. Previous resistance line, weekly horizontal support can challenge Aussie pair bears amid descending RSI towards oversold territory. U-turn from immediate upside hurdle, bearish MACD signals keep sellers hopeful; bulls need validation from 200-HMA. (FXStreet)

NZD/USD has printed a fresh day low at 0.6222 amid the risk-off mood. A mean reversion to near 50-EMA is offering a bargain buy to investors. The RSI (14) is expected to find a cushion around 40.00. (FXStreet)

USD/TRY keeps poking the all-time high marked in February, grinds higher of late. US Dollar traces US Treasury bond yields to reverse week-start losses. Downbeat Turkish data, geopolitical tension and CBRT’s hesitance to raise rates keep buyers hopeful. Friday’s Turkish CPI, US ISM Services PMI appear crucial for clear directions. (FXStreet)

USD/INR has displayed a sheer recovery to near 82.60 as hawkish Fed bets have fueled US yields. A formation of an Ascending Triangle indicates volatility contraction with a bullish bias. The 50-period EMA at 82.30 is likely to provide a cushion to the US Dollar bulls. (FXStreet)

USD/CHF picks up bids to reverse the previous day’s losses. Sustained trading above the key Fibonacci retracement, upbeat oscillators join bullish chart pattern to favor buyers. Sellers have a bumpy road to face on their return, 0.9345 appears short-term key support. (FXStreet)

WTI crude oil remains sidelined near two-week high after rising in the last two days. China data, policymakers’ comments suggest more energy demand from the world’s biggest commodity user. Fears of inflation, geopolitical concerns propel yields and challenge risk profile, as well as the Oil price. Downbeat inventories, US SPR issues keep sellers hopeful. (FXStreet)

Prices of the natural gas extended the recovery above the $2.80 level on Wednesday. The uptick was on the back of rising open interest and volume, indicating that the continuation of this move appears favoured in the very near term. The next hurdle of note for the commodity now emerges at the $3.00 mark per MMBtu ahead of a Fibo retracement of the December-February drop near $3.20. (FXStreet)

Gold price breaks out of descending parallel channel as market mood improves. US Dollar sell-off halted by rising US Treasury bond yields. ISM Services PMI release is still awaited for fresh impulse on XAU/USD. (FXStreet)

Silver price snaps two-day winning streak, renews intraday low of late. Clear U-turn from 200-DMA, bearish MACD signals hint at XAG/USD’s further downside. Three-week-old descending resistance line, horizontal area from the last December also challenge Silver buyers. Six-month-long upward-sloping trend line can restrict XAG/USD downside amid nearly oversold RSI (14). (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.