Market Update - 11 May 2023

EUR/USD regains some balance and rebounds from 1.0900. The greenback appears slightly offered following recent strength. Investors’ attention will be on the flash US Consumer Sentiment. (FXStreet)

GBP/USD picks up bids to pare BoE induced losses after upbeat UK growth, activity data. UK Q1 GDP matches downbeat market forecasts on QoQ and YoY basis, per preliminary estimations. US Dollar consolidates Thursday’s gains ahead more inflation clues. Hopes of avoiding US default, absence of major disappointment from banks favor corrective pullback. (FXStreet)

USD/CAD clings to mild losses near one-week high after rising the most on a day since early March. Downbeat Oil price, firmer US Dollar previously favored Loonie pair buyers amid risk-off mood. Market’s consolidation fails to inspire USD/CAD bears as WTI crude oil remains downbeat. (FXStreet)

The upside momentum in the index loses traction on Friday. US yields appear on the defensive early in the European session. Flash Consumer Sentiment, Fed’s Bowman next on tap. The greenback, in terms of the USD Index (DXY), exchanges gains with losses around the 102.00 region, or weekly highs, on Friday. (FXStreet)

USD/JPY remains confined in a narrow trading band through the Asian session on Friday. Reviving safe-haven demand benefits the JPY and acts as a headwind amid a softer USD. Traders now look to the Michigan US Consumer Sentiment Index for a fresh impetus. (FXStreet)

NZD/USD drifts lower for the second successive day and dives to over a one-week low on Friday. Worries about a global economic slowdown continue to weigh heavily on the risk-sensitive Kiwi. A modest USD downtick lends support, though the fundamental backdrop favours bearish traders. (FXStreet)

AUD/USD fades bounce off one-week low marked earlier in the day amid mixed sentiment. Hopes that Aussie budget will propel inflation and allow RBA to stay hawkish recently gained momentum. Expectations of China inflation recovery also made rounds; Aussie-China trade talks prod bears. Fears about US debt ceiling expiry, banking fallouts joins hawkish Fed talks to weigh on AUD/USD ahead of US data. (FXStreet)

USD/INR retreats from three-week high while paring the biggest weekly gain in two months. Downbeat Oil price joins market’s reassessment of risk catalysts to trigger Indian Rupee bounce from multi-day low. India CPI, output data precedes US Michigan CSI and Inflation Expectation to decorate economic calendar. Comparatively more hawkish Fed, challenges to risk appetite favor USD/INR bulls. (FXStreet)

Thursday’s daily decline in prices of the WTI came along declining open interest and volume, hinting at the idea that a deeper correction seems out of favour for the time being. On the upside, in the meantime, gains remain limited by the $74.00 region per barrel. (FXStreet)

On Thursday, natural gas prices fell even lower. The move was prompted by growing open interest and dropping volume, which maintains the current broad consolidative theme for the time being. Meanwhile, the important $2.00 mark per MMBtu has been a significant support for the commodity thus far. (FXStreet)

Gold price snaps two-week winning streak, slides beneath $2,030 confluence level. US debt ceiling talks, banking woes join hawkish Fed bets to propel US Dollar and weigh on XAU/USD. US policymakers will gather early next week to overcome default fears, Fed’s Powell also up for a speech. (FXStreet)

Silver drifts lower for the third successive day and hits over a one-month low on Friday. The overnight breakthrough the $24.50-40 horizontal support favours bearish traders. Some follow-through selling below the 38.2% Fibo. will set the stage for deeper losses. (FXStreet)

Source: FXStreet

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