Market Update - 25 May 2023 

USD/CAD renews three-week high but stays sidelined of late. Traders rush to US Dollar in search of risk safety amid anxiety about US debt ceiling extension talks. Oil price struggles to justify surprise draw in inventories, fears of less supplies amid firmer USD. Risk catalysts, second-tier data may entertain Loonie traders amid cautious markets. (FXStreet)

EUR/USD has refreshed its four-week low at 1.0740 as the USD Index has shown significant strength amid a cautious market mood. Federal Reserve policymakers advocated that the interest rate hike in May’s meeting should be followed by a pause due to banking turmoil. Higher interest rates by the European Central Bank in Eurozone are having catastrophic effects on its economic prospects. EUR/USD has kissed the 61.8% Fibonacci retracement at 1.0738. (FXStreet)

GBP/USD has shown recovery from 1.2330 however, the downside bias seems solid. Investors are entirely focusing on the US debt-ceiling issues rather than dovish cues From FOMC minutes. UK Hunt remained confident that inflation will get halved by the year-end. (FXStreet)

AUD/USD refreshes yearly bottom as traders rush to US Dollar amid market’s indecision. Fears of US default contrast with policymakers’ optimism to keep trouble traders. RBA vs. Fed divergence regain attention after RBNZ’s dovish hike. Risk catalysts, second-tier data can entertain intraday Aussie pair traders. (FXStreet)

USD/JPY eases from the highest levels in six months as Yen bears take a breather. BoJ’s Kuroda cites welcome signs of economic development but defends easy money policy. Mixed Fed talks, FOMC Minutes and anxiety about US debt ceiling issue keep Yen pair traders on a dicey floor. Risk catalysts, bond market moves are the key for clear directions. (FXStreet)

The index advances to multi-week highs north of 104.00. Concerns around the debt ceiling remain on the rise. Flash Q! GDP, weekly Claims, housing data take centre stage later. The greenback, in terms of the USD Index (DXY), extends the upside beyond the 104.00 hurdle for the first time since mid-March. (FXStreet)

USD/ZAR picks up bids to refresh intraday high, extends previous day’s rebound towards record high. Fears of US default, mixed Fed concerns favor US Dollar bulls. SARB is expected to announce 0.25% rate hike, recently easy South African inflation teases Rand sellers. Multiple US data, risk catalysts eyed for clear directions as ZAR braces for fresh all-time low. (FXStreet)

USD/TRY grinds near all-time high as markets wait for CBRT Interest Rate Decision. Political turmoil in Turkiye, CBRT’s hesitance to raise rates despite inflation fears propel USD/TRY price. US debt ceiling woes, hawkish Fed concerns also keep Turkish Lira on bear’s radar. (FXStreet)

USD/INR picks up bids to pare the previous day’s heavy losses, bounces off important support confluence. Convergence of 50-SMA, 13-day-old rising trend line puts a floor under Indian Rupee pair’s price. 21-SMA, one-week-long horizontal resistance zone challenge buyers amid bearish MACD signals. (FXStreet)

Natural Gas prices are going through a corrective move after failing to sustain above $2.58. The US EIA is expected to report a build-up of inventory by 119 bcf for the week ending May 19. Natural Gas prices resumed their upside journey after a bullish Hidden Divergence. (FXStreet)

Gold Price holds lower ground as it prods bottom of short-term key trading range. Firmer US Treasury bond yields, US Dollar cap XAU/USD’s haven demand amid dicey markets. Mixed feelings about US debt ceiling deal, Federal Reserve restrict the Gold Price moves. US data, risk catalysts eyed for clear directions as US negotiators brace for long weekend. (FXStreet)

Source: FXStreet

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