Market Update - 18 March 2023

USD/CHF fills a modest bearish gap opening on Monday, though the upside potential seems limited. The emergence of some USD buying is seen as the only factor lending some support to the major. Bets for a less hawkish Fed, tumbling US bond yields and the risk-off mood to cap gains for the pair. (FXStreet)

Coordinated efforts to rescue the global banking sector fail to boost EUR/JPY. European banking crisis takes a toll on EUR/JPY despite interest rate hikes. Narrowing yield differential with JGBs adds to EUR/JPY volatility amid banking turmoil. (FXStreet)

USD/CAD picks up bids to refresh intraday high, reverses week-start pullback. One-week-old symmetrical triangle restricts immediate moves of the Loonie pair. 100-SMA adds strength to 1.3685 support confluence, 50-SMA guards immediate upside. MACD, RSI (14) line suggest a slower grind towards the north. (FXStreet)

The index starts the new week slightly on the defensive. The Fed is expected to raise rates by 25 bps later in the week. Short-term Bill Auctions will be the only releases in the docket. The greenback, in terms of the USD Index (DXY), struggles for direction around the 103.80 at the beginning of the week. (FXStreet)

EUR/USD breaks 21-DMA as bullish momentum continues amid a steady US Dollar. Banking turmoil weighs on US Treasury yields, boosting EUR/USD toward crucial levels. EUR/USD looks to regain 1.0700, as the market awaits directional clues from the FOMC meeting. (FXStreet)

GBP/USD is facing barricades in recapturing the round-level resistance of 1.2200. Federal Reserve is expected to hike rates further by 25 bps to continue weighing on sticky inflationary pressures. A steady monetary policy is expected from the Bank of England despite the Silicon Valley Bank collapse. GBP/USD has witnessed a solid upside move after testing the breakout zone of the Falling Channel pattern. (FXStreet)

EUR/GBP prints four-day downtrend despite recent inaction. Optimism surrounding UK’s output, housing market jostles with the hawkish ECB talks. Market’s failure to keep the week-start optimism adds strength to the pair’s sluggish moves. Speech from ECB’s Lagarde, key UK data and BoE Monetary Policy Meeting eyed for clear directions. (FXStreet)

USD/MXN picks up bids to extend the previous day’s rebound from 50-DMA. 11-week-old descending trend line challenges Mexican Peso pair buyers. 100-DMA, double tops around 19.20 also challenge the upside moves. Oscillators are well in support of bulls even as multiple hurdles test the north run. (FXStreet)

AUD/USD retreats from early gains as liquidity concerns persist despite central banks' efforts. Investors are cautious despite the swap line, as two more European banks are on the radar. All eyes are on the Fed and their expected 25 bps rate hike. (FXStreet)

NZD/USD remains depressed around intraday low as it snaps two-day winning streak. Bullish MACD signals, 200-EMA and nearby rising trend line keeps buyers hopeful unless breaking 0.6180 support. One-month-old ascending resistance line challenges Kiwi pair’s immediate upside. (FXStreet)

USD/INR prints three-day downtrend even as bears struggle to keep the reins of late. Major central banks’ join effort to tame liquidity crunch, UBS-Credit Suisse deal favor risk-on mood. Chatters over the loss of Credit Suisse AT1 bondholders, anxiety ahead of Fed policy meeting probe optimists. (FXStreet)

Friday’s strong pullback in prices of the barrel of the WTI was in tandem with increasing open interest and volume. Against that, the continuation of the current decline looks the most likely scenario in the very near term and with the immediate target at the key $60.00 mark. (FXStreet)

Natural gas prices dropped to multi week lows on Friday. The daily retracement was accompanied by rising open interest and is indicative that a deeper decline emerges on the horizon in the very near term. That said, another visit to the $2.00 neighbourhood sooner rather than later remains on the cards. (FXStreet)

Gold price picks up bids to reverse the early-day losses within one-week-old bullish channel. Global central banks’ moves to infuse US Dollar liquidity, UBS-Credit Suisse deal earlier favored risk-on mood. Details of efforts to push back fears from banking sector fallout appear less lucrative amid hawkish central bank bias. Woes for Credit Suisse bondholders, cautious mood ahead of top-tier data/events weigh on sentiment. (FXStreet)

Silver finds support near 50% Fibo. and stalls its modest intraday slide from a multi-week peak. The technical setup favours bullish traders and supports prospects for further near-term gains. A convincing break below the $21.50 area negates the positive outlook for the white metal. (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.