Market Update - 20 June 2023

EUR/USD has delivered an upside break of the 20-pips range formed above 1.0900. The ECB has confirmed that more interest rates are in the pipeline due to persistence in core inflation. EUR/USD has shown a mild correction after confidently climbing above the 61.8% Fibonacci retracement at 1.0920. (FXStreet)

USD/JPY is expected to show losses if fails to sustain above 141.50. A moderate upside move in the USD Index has concluded now as investors are expecting only one rate hike from the Fed. BoJ might do a stealth intervention if USD/JPY climbs to 145.00. (FXStreet)

GBP/USD remains sidelined after reversing from 14-month high. Jump in UK government’s two-year borrowing cost propel hawkish BoE concerns. Fed talks, mixed US data lures Pound Sterling bears as full markets return. UK CPI, second-tier US data may entertain Cable traders ahead of BoE, Fed Chair Powell’s Testimony. (FXStreet)

AUD/USD has shown a recovery move from 0.6800 supported by a sell-off in the USD Index. S&P500 futures have recovered some losses, portraying an increment in the risk appetite of the market participants. Dovish PBoC interest rate policy has provided strength to the Australian Dollar. (FXStreet)

The index climbs to 3-day peaks near 102.60. US markets return to normal activity following Monday’s holiday. Housing data, Fedspeak next on tap in the US docket. The greenback advances further and reaches new 3-day peaks around 102.60 when tracked by the USD Index (DXY) on turnaround Tuesday. (FXStreet)

USD/CAD extends week-start rebound from yearly low, renews intraday top of late. Convergence of 100-HMA, previous support line guards immediate recovery. Loonie pair sellers need validation from resistance-turned-support line. Triangle breakout, bullish MACD signals favor intraday buyers of USD/CAD. (FXStreet)

USD/CHF scales higher for the third straight day, albeit lacks follow-through buying. A goodish pickup in the US bond yields boosts the USD and lends support to the pair. A softer risk tone benefits the CHF and caps gains amid the Fed rate hike uncertainty. (FXStreet)

EUR/JPY is seen consolidating its recent strong gains to the highest level since September 2008. Overbought RSI on the daily chart holds back bulls from placing fresh bets and caps the upside. Weakness below the daily swing low could pave the way for some meaningful corrective decline. (FXStreet)

EUR/GBP picks up bids to refresh intraday high, stretches recovery from 10-month low. ECB policymakers suggest higher rates despite softer German PPI. UK’s two-year borrowing costs jump to 15-year high, suggesting more power for BoE hawks. Risk catalysts eyed ahead of Wednesday’s British inflation. (FXStreet)

GBP/JPY has gauged a cushion around 181.00 as the focus has shifted to UK inflation. Price pressures in the UK region have remained extremely stubborn in comparison with other developed economies. The consistent decline in the Japanese Yen has propelled expectations of a stealth intervention by the BoJ. (FXStreet)

USD/MXN continues with its struggle to gain any traction and languishes near a multi-year low. The formation of a descending channel points to a well-established short-term bearish trend. The RSI on the daily chart is still flashing oversold conditions and holding back bearish traders. (FXStreet)

USD/TRY remains indecisive, grinding near the record high marked the last week. Turkish Lira buyers brace for strong hawkish CBRT move, markets expect heavy rate increase to the tune of near 20%. Fed stays on course to announce July rate hike, Powell’s speech will be crucial to watch. Full markets’ return may entertain intraday traders but lack of volatility is expected ahead of the key Thursday. (FXStreet)

USD/CNH picks up bids to refresh intraday high, up for the third consecutive day. PBoC cuts one-year, five-year LPRs by 10 basis points. Hawkish Fed bets gain momentum after Juneteenth holiday. Mixed clues about US-China ties, fears of China’s slower economic recovery also propel offshore Yuan price. (FXStreet)

NZD/USD is going through a rough phase as higher interest rates by the RBNZ are denting domestic demand. US markets were closed on Monday therefore a volatile action is expected due to the extended weekend. Investors should note that RBNZ has raised interest rates to 5.50%, higher than interest rates in the US economy. (FXStreet)

USD/INR picks up bids to extend bounce of seven-month-old ascending support line. RSI rebound from oversold territory favor corrective move in Indian Rupee. 100-DMA acts as extra upside filter before welcoming USD/INR bulls. Multi-month-old symmetrical triangle restricts the pair’s broad moves, suggest further recovery. (FXStreet)

Natural Gas price drifts lower on Tuesday and snaps a six-day winning streak to a one-month top. The recent breakout through key hurdles favours bulls and supports prospects for further gains. A convincing break back below the $2.50 area is needed to negate the near-term positive outlook. (FXStreet)

Silver price is consolidating below $24.00 as the USD Index remains elevated. A cautious market mood has been observed in the FX domain as the US markets will open after an extended weekend. Distinct responses to Fed interest rate guidance have kept the USD Index quiet. (FXStreet)

Source: FXStreet

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.