Market Update - 29 May 2023 

GBP/USD has shown recovery amid a sell-off in the USD index after approval of a raise in the US debt-ceiling. The US Dollar Index has critically come under pressure as the approval of a higher US debt-ceiling has faded fears of a spike in interest rates. BoE Bailey is bound to halve inflation by year-end as promised by UK PM Rishi Sunak. (FXStreet) 

EUR/USD prints the first daily gain in five around the lowest levels in 10 weeks. US Dollar retreats as policymakers deliver debt ceiling agreement, challenges to passage prod the Euro buyers. Hawkish Fed bets versus fears of Eurozone recession also exert downside pressure on EUR/USD. Holidays in Germany, US to restrict Euro moves ahead of Eurozone inflation, US NFP. (FXStreet) 

USD/JPY eases from yearly high, snaps three-day uptrend. One-week-old resistance line, overbought RSI (14) line challenge Yen pair buyers. 12-day-old bullish trend channel, upbeat MACD signals and sustained trading beyond 200-SMA favor buyers. (FXStreet) 

GBP/JPY retreats from the highest levels since February 2016 as traders pare recent gains amid UK holiday. Off in major bond markets, recently hawkish BoJ concerns versus doubts BoE hawks prod pair buyers. Risk catalysts are important for clear directions, US debt limit passage is the key. (FXStreet) 

AUD/USD has shown a recovery move from below 0.6530 amid a decline in appeal for the USD Index. Speaker McCarthy agreed for raising the US borrowing cap limit as US Biden got ready for compromise spending initiatives for the budget. Australian retail demand remained stagnated as higher interest rates and sky-rocketing cost of living have trimmed their pockets. (FXStreet) 

The index appears slightly offered just above 104.00. Biden-McCarthy reached a deal to raise the debt limit. US markets will be closed on Monday due to Memorial Day holiday. The greenback gives away part of the recent rally, although it manages well to keep the trade above the 104.00 mark when gauged by the USD Index (DXY) on Monday. (FXStreet) 

USD/CAD has shifted its auction below 1.3600 after a modification in the US debt structure. Fresh incoming data is advocating for more interest rate hikes by the Federal Reserve. Resilience in the Canadian economy could force the Bank of Canada to start hiking interest rates again. USD/CAD asset has dropped after facing barricades around the horizontal resistance placed from April 26 high at 1.3651. (FXStreet) 

NZD/USD has stretched its recovery above 0.6060 amid a sheer sell-off in the USD Index. An increase in $31.4 trillion US borrowing limit is expected to attract downgrades from credit rating firms for US long-term sovereignty. NZD/USD has shown a responsive buying move after dropping below 0.6040 but is likely to face stiff barricades around 0.6110. (FXStreet) 

USD/INR is making efforts in defending its immediate support of 82.50 amid a subdued USD Index. The USD Index could get a booster shot as investors are anticipating a continuation of the interest rate hike regime from the Fed. USD/INR has delivered a breakdown of the Head and Shoulder chart pattern. (FXStreet) 

USD/CHF remains depressed after reversing from seven-week high. US Dollar consolidates monthly gains as US debt ceiling agreement lacks overall acceptance ahead of Congress voting. Risk appetite appears slightly positive as off in multiple markets, including Switzerland, limits sentiment. (FXStreet) 

USD/TRY picks up bids to refresh all-time high, reverses Friday’s corrective pullback. Erdogan marks more than two decades of leadership with the latest election win. Uncertainty about US debt ceiling extension deal also weighs on Turkish Lira. Risk catalysts, US NFP eyed for clear directions. (FXStreet) 

USD/CAD holds lower ground during two-day retreat from monthly high. Bearish MACD signals add strength to pullback moves targeting previous resistance line. Loonie pair’s recovery needs validation from April’s peak. (FXStreet) 

Natural Gas struggles to defend the first daily gains in three inside bullish chart formation. Key SMA, impending bull cross on MACD lure XNG/USD buyers. Confirmation of falling wedge becomes necessary to convince Natural Gas bulls. Sellers have a bumpy road to travel unless breaking $2.14. (FXStreet) 

Gold price is facing delicate hurdles around $1,945.00 despite the USD Index has retreated from 104.20. A downgrade in the US long-term credibility would have a negative impact on the USD Index and US equities. Gold price is defending its cushion near horizontal support plotted from $1.937.39. (FXStreet) 

Silver price fades the previous day’s corrective bounce off two-month low. Overbought RSI, looming bear cross on MACD adds strength to bearish bias below 200-HMA. Fortnight-old resistance line adds to the upside filters; $23.00 acts as extra support . (FXStreet) 

Source: FXStreet

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