Market Update - 17 April 2023

GBP/USD takes offers to renew intraday low, extends the previous day’s pullback from 10-month high. Talks of BoE’s likely changes to deposit guarantee scheme, UK Chancellor Hunt’s fears from US subsidies weigh on Cable pair. Upbeat US data, Fed talks push back bets on rate cuts, policy pivot and underpin US Dollar’s corrective bounce. Slew of UK data, US PMIs to entertain GBP/USD traders during the week. (FXStreet)

The index climbs to the 101.80 during early trade on Monday. The Fed is likely to hike rates by 25 bps at the May 3 gathering. NAHB Index, TIC Flows, NY Empire State index next on tap. The greenback gives away gains to the 101.80 region recorded earlier in the Asian trading hours and returns to the 101.60 zone when gauged by the USD Index (DXY) on Monday. (FXStreet)

EUR/GBP has sensed barricades while attempting a break above the 0.8860 resistance.UK Hunt is confident that their economy will outperform this year. ECB Lagarde cited that Eurozone inflation would soften gradually ahead. (FXStreet)

AUD/USD consolidates the biggest daily loss since early March with mild gains, grinds near intraday high of late. US Dollar seeks fresh clues to extend previous day’s rebound from one-year low. China-linked headlines, light calendar allow Aussie pair buyers to reverses the pullback from multi-day top. RBA Minutes, China Q1 GDP and US PMIs are in the spotlight for fresh impulse. (FXStreet)

USD/CHF retreats from intraday high, fades the previous week’s rebound from early 2021 levels. Three-day-old resistance line, 100-EMA restrict immediate upside amid nearly overbought RSI. Receding bullish bias of MACD signals also extend downside pressure on Swiss Franc pair. Resistance-turned-support from April 10 puts a floor under the prices for intraday. (FXStreet)

EUR/USD picks up bids from intraday low amid two-day pullback from the highest level in a year. Doubts about US debt default, hawkish ECB talks and economic recovery hopes underpin Euro pair’s corrective bounce. Mostly upbeat US data, Fed comments push back odds of Fed policy pivot, rate cuts and defend EUR/USD bears. Speech from ECB’s Lagarde can entertain intraday traders, preliminary PMIs are the key. (FXStreet)

USD/CAD has dropped below 1.3350 amid exhaustion in the upside momentum of the USD Index. Federal Reserve to hike rates despite softening of US Retail Sales as the core inflation is extremely stubborn. Bank of Canada might continue its neutral stance on interest rates if inflation continues to decline ahead. USD/CAD is declining towards potential supports placed at 1.3267 and 1.3226 respectively. (FXStreet)

USD/JPY is at a make or a break level around 134.00 amid the Ascending Triangle formation. Multiple economic indicators are conveying that Fed would pause its policy-tightening spell sooner. The USD Index has sensed selling pressure while extending its upside above the immediate resistance of 101.8. (FXStreet)

GBP/USD has shown some recovery as USD Index fails to extend recovery. Decelerating the UK labor cost index will provide some relief to BoE policymakers. US Retail Sales report showed that demand for costly items, which involves the cost of financing remained weak, remained weak. (FXStreet)

GBP/JPY prints mild gains within bearish chart formation. Downbeat MACD signals, clear break of three-week-old previous support line keeps sellers hopeful. 100, 200 SMAs can prod bears before directing them to theoretical target of 162.30. Bulls need to cross the 167.00 hurdle to retake control. (FXStreet)

USD/INR is looking to extend its recovery above 82.00 amid a recovery in the USD Index. A consecutive 25bp rate hike is highly anticipated as US core inflation has shown evidence of extreme stubbornness. India's FX reserves jumped to a 9-month high of $584.76 bln for the week ended April 7. (FXStreet)

USD/MXN holds lower grounds after breaking five-week-old key support line. Bearish MACD signals, absence of oversold RSI conditions keep Mexican Peso buyers hopeful of targeting 17.80. July 2017 low becomes crucial support for USD/MXN bears to watch. Buyers remain off the table below 200-SMA hurdle, support-turned-resistance line from March guards immediate upside. (FXStreet)

WTI crude oil fails to cheer US Dollar retreat as it drops towards intraday low. Concerns that higher Oil price, challenges to economic growth can recall WTI bears. China Q1 GDP, preliminary readings for April’s US PMIs will be in focus. (FXStreet)

Natural Gas price fades bounce off the lowest levels since August 2020. Three-week-old bearish channel, 200-SMA prods XNG/USD’s corrective bounce. Bullish MACD signals, short-term SMA confluence puts a floor under the Natural Gas price. (FXStreet)

Gold price remains indecisive after luring bears the previous day. US Dollar tracks Treasury bond yields amid mixed concerns about recession, US debt ceiling talks. China-linked headlines, light calendar adds strength to the XAU/USD inaction. US PMIs, central bank talks will be important to watch for clear directions. (FXStreet)

Source: FXStreet, DailyFX

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