Market Update - 09 May 2023

USD/JPY edges lower on Tuesday in reaction to BoJ Governor Ueda’s hawkish remarks. A modest USD strength lends some support to the major and helps limit the downside. Traders also seem reluctant to place aggressive bets ahead of the US CPI on Wednesday. (FXStreet)

Further selling bias forces EUR/USD to breach 1.1000. The greenback appears supported by rising risk-off mood. ECB’s Kazaks, Kazimir favoured extra rate raises in the next months. Sellers remain in control of the sentiment in the risk complex and force EUR/USD to retreat further south of the 1.1000 support on turnaround Tuesday. (FXStreet)

GBP/USD picks up bids to reverse the previous day’s pullback from the highest levels since April 2022. UK inflation woes, Brexit optimism supersede Britain’s political disappointment to allow Cable buyers to retake control. US Dollar fails to cheer upbeat yields amid debt-ceiling woes, banking turmoil. White House talks on US debt ceiling expiration will be the key ahead of US, UK data, BoE. (FXStreet)

USD/CHF stays pressured after reversing from one-week high the previous day. Failure to cross 100-EMA, easing bullish bias of MACD lures Swiss Franc buyers inside bearish megaphone formation. Two-month-old previous resistance line lures intraday sellers; bulls need 200-EMA breakout to convince markets. (FXStreet)

The index adds to Monday’s gains and approaches 101.50. Fed’s report warned that an economic slowdown is not ruled out. NFIB Index, IBD/TIPP Index, Fedspeak next on tap in the docket. The greenback, in terms of the USD Index (DXY), extends the optimism seen at the beginning of the week and revisits the 101.50 region on Tuesday. (FXStreet)

USD/CAD fades bounce off three-week low amid sluggish markets. US Dollar struggles to defend recent gains, Oil price remains sidelined. Mixed sentiment about US debt-ceiling accord, banking turmoil prod Loonie pair traders. (FXStreet)

NZD/USD pulls back from over a one-month high touched on Monday, though lacks follow-through. The overnight rise in the US bond yields underpins the USD and acts as a headwind for the major. The Fed’s less hawkish outlook could cap the USD and lend support to the pair ahead of the US CPI. (FXStreet)

USD/MXN struggles to defend the previous day’s rebound from the lowest levels since September 2017. Cautious markets ahead of the key debt-ceiling talks, US and Mexican inflation prod pair buyers. Fears of US, unimpressive Fed bank survey keeps Mexican Peso bulls hopeful. (FXStreet)

USD/INR has added significant gains amid a strong recovery in the USD Index ahead of US inflation. The Fed is expected to keep interest rates higher for a longer period to continue to weigh on stubborn US inflation. USD/INR has attempted a confident breakout of the consolidation formed in an 81.64-81.95 range. (FXStreet)

Prices of the barrel of the WTI rose for the third session in a row at the beginning of the week. The daily uptick, however, was amidst dwindling open interest and volume and hints at the idea that the continuation of the upside might face some headwinds in the very near term. So far, there are provisional barriers at the 55- and 100-day SMAs at $75.43 and $76.54, respectively. (FXStreet)

The auspicious start of the week of natural gas prices came amidst shrinking open interest and increasing volume, which is suggestive that the current multi-week consolidative theme has still further legs to go. In the meantime, solid contention remains around the $2.00 mark per MMBtu. (FXStreet)

Gold price gains some positive traction for the second straight session, though lacks follow-through. A modest US Dollar strength, along with easing fears of a full-blown banking crisis, act as a headwind. The Federal Reserve’s less hawkish outlook to limit the downside ahead of the US CPI on Wednesday. (FXStreet)

Source: FXStreet

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