Market Update - 09 March 2023

EUR/USD has scaled above 1.0550 after a recovery move, however, the recovery move lacks fundamental strength. Federal Reserve has confirmed a higher terminal rate than previously anticipated. European Central Bank might continue its 50 bps rate hike spell despite contracting German Retail Sales. EUR/USD is expected to deliver a sheer downside amid the formation of an Inverted Flag pattern. (FXStreet) 

The index seems to have met some resistance near 105.90. Bets for a 50 bps rate hike by the Fed continue to rise. Weekly Claims, FOMC’s Barr next of note on Thursday. The greenback, in terms of the USD Index (DXY), starts the European trading hours slightly on the defensive and around the 105.50 region on Thursday. (FXStreet) 

AUD/USD is attempting to scale above 0.6600, however, the risk-off mood is still intact. A Doji candlestick formation indicates indecisiveness among market participants. An oscillation in the 20.00-40.00 range by the RSI (14) indicates that the bearish momentum is currently active. (FXStreet) 

GBP/USD gains some positive traction for the second successive day amid a modest USD downtick. The fundamental backdrop warrants caution before positioning for any further appreciating move. Bets for a 50 bps Fed rate hike in March, recession risks could limit the USD losses and cap the pair. (FXStreet) 

USD/CAD is seen consolidating its recent strong gains to the highest level since October. A modest USD pullback from a multi-month top cap gains amid an uptick in Oil prices. The fundamental backdrop supports prospects for an extension of the bullish trajectory. (FXStreet) 

GBP/JPY meets with a fresh supply on Thursday and drops closer to the overnight swing low. Looming recession risks benefit the safe-haven JPY and exert downward pressure on the cross.A modest pickup in demand for the GBP could limit losses ahead of the BoJ decision on Friday. (FXStreet) 

NZD/USD seesaws around intraday high while keeping the bounce off 3.5-month low. 50-HMA, two-week-old horizontal resistance area restrict immediate run-up inside short-term bullish channel. Oscillators suggest slower grind towards the north but buyers need validation from 0.6200. (FXStreet) 

USD/INR extends the previous day’s pullback from one-week high, pressured around intraday low of late. US Dollar bulls take a breather at three-month high as traders await the key employment data amid mixed feelings. Cautious optimism in Asia adds strength to the Indian Rupee’s rebound.Second-tier data, risk catalysts eyed for intraday directions. (FXStreet) 

USD/IDR holds lower ground near intraday bottom after reversing from multi-day top. Indonesia Retail Sales growth plummets to multi-month low in January. US Dollar’s pullback amid sluggish markets, positioning for Friday’s NFP seem to probe pair buyers. (FXStreet) 

USD/MXN retreats towards multi-year low as US Dollar struggles to cheer risk-off mood. US Dollar grinds despite President Biden’s controversial tax proposal, higher yields and hawkish Fed bets. Banxico shows more clarity over rate hike than Fed with no talks of policy pivot fueling Mexican Peso. (FXStreet) 

AUD/JPY renews seven-week low as China prints downbeat CPI, PPI for February. Convergence of two-month-old ascending trend line, 50% Fibonacci retracement challenge bears amid oversold RSI (14) line. Recover remains elusive unless crossing 91.75 hurdle; MACD teases buyers. (FXStreet) 

USD/CNH has scaled above 6.9750 as the Chinese economy has registered a deflation by 0.5%. Producers have lowered prices of goods and services at factory gates due to sluggish demand. Upbeat US ADP Employment data has confirmed that January’s strong data was not a one-time blip. (FXStreet) 

EUR/GBP is built a cushion around 0.8900 amid rising odds of a steady BoE policy. A breakout of the Descending Triangle has already underpinned the Euro against the Pound Sterling. Upside momentum is still active as the RSI (14) has not surrendered the bullish range yet. (FXStreet) 

Prices of the barrel of the WTI extended the weekly decline on Wednesday. The downtick was in tandem with increasing open interest and allows for the continuation of the selling pressure. That said, the immediate contention now emerges at the weekly low near $73.80 (February 22, 23). (FXStreet) 

Prices of the natural gas retreated modestly on Wednesday amidst the ongoing weekly choppiness. The daily pullback was on the back of diminishing open interest and volume and bolsters the idea that further weakness looks unlikely in the very near term at least. The commodity, in the meantime, seems well supported by the $2.50 region per MMBtu for the time being. (FXStreet) 

Gold price is struggling to sustain above $1,800.00 amid rising bets for hawkish Fed policy. The risk-aversion theme has heated further as China has shown deflation in the CPI and PPI figures. Higher funds in the pocket of US households due to rising labor cost index might propel consumer spending. (FXStreet) 

Silver price prints mild gains as it reverses from four-month low. Short-term descending support line, oversold RSI adds strength to recovery. Doji candlestick, 100-DMA challenge XAG/USD buyers amid sluggish moves. (FXStreet) 

Bitcoin prices drop below 50-day MA (moving average), holding as resistance above $23,000. BTC/USD loses traction, leaving prices vulnerable around $22,000. Cryptocurrency lacks clarity as investors focus on Fed Chair, Jerome Powell’s congressional statement and clues on additional rate hikes. (DailyFX)

Source: FXStreet, DailyFX

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