Market Update - 27 June 2023

USD/JPY is making efforts for a range expansion as BoJ to remain dovish. S&P500 futures have added significant gains as investors are digesting fears associated with expectations of higher interest rates from the Fed. The US Dollar Index is oscillating around the immediate support of 102.60 ahead of US Durable Goods Orders. (FXStreet)

EUR/USD grinds near intraday high, extends week-start recovery ahead of key catalysts. Risk-on mood, China market intervention weigh on US Dollar and favor Euro buyers. Hawkish comments from ECB’s Kazaks, Bundesbank’s optimism can help Lagarde to defend rate hikes. US Durable Goods Orders, CB Consumer Confidence also eyed for clear directions. (FXStreet)

GBP/USD is showing signs of volatility contraction despite the risk-on mood. Cable’s upside is restricted as UK’s high inflation has dampened its outlook while the downside is supported due to USD Index’s correction. BoE Bailey is expected to remain hawkish as UK’s core inflation has printed a fresh high of 7.1%. (FXStreet)

EUR/JPY regains upside momentum around the highest levels since September 2008, ECB President Christine Lagarde speech eyed. Rising trend channel since early March sustained trading below immediate DMA lures buyers. Pullback remains elusive until the quote breaks 151.00 support confluence. Overbought RSI conditions may trigger pullback from 157.40 hurdle, if not then 160.00 will be in the spotlight. (FXStreet)

AUD/USD is aiming to extend its recovery above 0.6720 as the market sentiment is upbeat. Investors are hoping that the Fed could pause its policy-tightening spell after hiking interest rates in July. Australia’s monthly inflation is seen softening to 6.1% from the prior release of 6.8%. (FXStreet)

The index loses further momentum and tests 102.50. US yields extend the decline in the short end of the curve. CB Consumer Confidence, Durable Goods Orders next on tap. The greenback extends the pessimism seen at the beginning of the week and drops to 2-day lows in the 102.50 when tracked by the USD Index (DXY) on turnaround Tuesday. (FXStreet)

GBP/JPY touches a fresh multi-year top on Tuesday, albeit lacks follow-through. The BoJ’s dovish stance, a positive risk tone undermine the JPY and lends support. Looming recession risks act as a headwind for the GBP and cap gains for the cross. (FXStreet)

EUR/GBP has jumped to near 0.8600 after hawkish commentary from ECB Lagarde at the ECB forum of Central Banking. ECB Kazaks cleared that there are strong risks of persistence in inflation and that expectations of rate cuts in early 2024 are wrong. The Pound Sterling is facing pressure as elevated inflation in the UK is threatening their economic outlook. (FXStreet)

USD/CAD drifts lower for the second straight day and is pressured by a combination of actors. An uptick in Oil prices underpins the Loonie and exerts pressure amid a modest USD weakness. Investors now look to the Canadian CPI and the US macro data for some meaningful impetus. (FXStreet)

USD/CHF is trading back and forth in a limited range as investors are mixed about Fed’s monetary outlook. S&P500 futures have surrendered some gains, however, the overall market mood is quite bullish. USD/CHF is making efforts for keeping itself above the 61.8% Fibonacci retracement at 0.8946. (FXStreet)

USD/INR prints the first daily loss in three, stays pressured around intraday low of late. China induces Asia-Pacific markets’ risk-on mood and weighs on US Dollar. Firmer Oil Price, anxiety ahead of ECB Forum and US data prod Indian Rupee buyers. (FXStreet)

Gold price is anticipating a range expansion amid a further decline in the US Dollar Index. Mixed responses from Fed policymakers have kept investors on their toes. Gold price is auctioning in a Symmetrical Triangle chart pattern, which indicates a decline in volatility. (FXStreet)

Source: FXStreet

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