Market Update - 11 May 2023

EUR/USD prints monthly lows in the 1.0925/20 band. The US Dollar extends the weekly recovery to multi-day highs. Markets’ attention will be on US Producer Prices, weekly claims. The selling pressure around the European currency gathers further steam and drags EUR/USD to 3-week lows near 1.0920 on Thursday. (FXStreet)

USD/CAD regains positive traction on Thursday amid the emergence of some USD buying. Bets for an imminent pause in the Fed’s rate-hiking cycle could cap the upside for the buck. An uptick in Oil prices might further contribute to keeping a lid on further gains for the pair. (FXStreet)

USD/JPY bounces off weekly low to pare intraday losses, portrays two-day downtrend. Convergence of 200-EMA, short-term support lines highlights 133.90 as the key support. Yen pair’s recovery remains elusive below 135.40 hurdle. (FXStreet)

The index resumes the upside following Wednesday’s drop. Bets on a Fed’s pause in June continue to rise. Producer Prices, weekly Initial Claims next on tap in the docket. The greenback, in terms of the USD Index (DXY), picks up mild upside traction and revisits the 101.50 region on Thursday. (FXStreet)

GBP/USD remains indecisive as the key Bank of England (BoE) monetary policy decision looms. Quarterly BoE report will be watched closely as inflation pressures British policymakers to stays hawkish despite economic woes. Terminal Rate, growth/inflation forecasts appear critical as BoE’s 0.25% rate hike seems already priced in. US PPI, risk catalysts also become important as Cable pair prods 13-month high. (FXStreet)

USD/CHF picks up bids to prod the top line of a bullish chart formation. Upbeat RSI, clear bounce off 0.8870 double-bottom keeps USD/CHF buyers hopeful. Sellers need validation from 0.8880, buyers may aim for 0.8950 on confirming bullish triangle breakout. (FXStreet)

USD/INR picks up bids to pare the previous day’s pullback from thee-week high. US Dollar pares post-inflation losses as traders seek more details to confirm dovish Fed bias. Cautious optimism in the markets, firmer Oil price and hopes of no imminent RBI rate hike weigh on Indian Rupee. US PPI, India inflation numbers eyed for clear directions. (FXStreet)

AUD/USD lacks any firm intraday direction and oscillates in a range on Thursday. Mixed Chinese inflation data is seen capping gains amid a modest USD strength. Bulls still need to wait for a move beyond the 100 DMA before placing fresh bets. (FXStreet)

Wednesday’s corrective pullback in prices of the WTI came in tandem with shrinking open interest, suggesting that a sustained retracement appears not favoured for the time being. Against that, the weekly recovery could have further legs to go and is expected to meet initial hurdle at the $74.00 mark per barrel. (FXStreet)

Prices of natural gas retreated modestly on Wednesday amidst the uptick in open interest and volume. Against that, another decline remains on the cards in the very near term, although a deeper pullback is expected to meet a formidable barrier around the $2.00 mark per MMBtu. (FXStreet)

Gold price edges lower for the second successive day, albeit lacks follow-through. A goodish pickup in the US Dollar demand exerts some pressure on the XAU/USD. The fundamental backdrop warrants caution before positioning for deeper losses. (FXStreet)

Silver price stays pressured as bears attack 21-DMA, two-month-old ascending support line. Bearish MACD signals, RSI’s retreat from overbought territory suggests further downside. Multiple levels marked since early 2023 highlight $24.60-50 as crucial downside support for XAG/USD. (FXStreet)

Source: FXStreet

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