Market Update - 28 June 2023

GBP/USD remains on the back foot amid market’s cautious mood ahead of key speeches from BoE, Fed leaders. UK two-year Gilts jump to 15-year high, markets place 20% bets on 6.5% BoE rate peak. Upbeat US data, fears emanating from China allow US Dollar to consolidate weekly gains. Fed’s Powell has a tough task convincing bulls than BoE’s Bailey but British recession may lure Cable bears. (FXStreet)

GBP/JPY has corrected to near 183.00 as investors are awaiting the speech from BoE Bailey. Hawkish interest rate guidance is anticipated from Andrew Bailey as UK’s May inflation turned out highly persistent. Broader weakness in the Japanese Yen has propelled chances of a stealth intervention. (FXStreet)

EUR/GBP consolidates weekly gains ahead of key central bankers’ speeches. Bullish chart formation, upbeat MACD signals keep pair buyers hopeful. 200-SMA adds to the upside filters as ECB versus BoE play appears less interesting. (FXStreet)

AUD/USD retreats towards three-week low marked after Aussie inflation release amid dicey markets. Australia Monthly CPI flags concerns about RBA’s rate hike pause while US data underpins hawkish Fed bets. Lack of economic/political clarity about Australia’s biggest customer China also weighs on risk-barometer pair. Fed Chair Jerome Powell’s speech at ECB Forum will be crucial for clear directions. (FXStreet)

The USD Index (DXY), which tracks the greenback vs. a bundle of its main rival currencies, managed to set aside part of the weekly bearish note and advance to the 102.70 region on Wednesday. (FXStreet)

USD/CAD has refreshed its weekly high at 1.3230 as BoC might skip the interest rate hike ahead. The US Dollar Index has sensed fragile barricades around 102.70 as the focus is on the speech from Fed Powell. USD/CAD has delivered a breakout of the Bearish Wedge chart pattern, which indicates a bullish reversal. (FXStreet)

USD/JPY reverses modest intraday slide and climbs to a fresh YTD peak on Wednesday. The Fed-BoJ policy divergence continues to act as a tailwind despite intervention fears. Traders look to Fed Chair Powell and BoJ Governor Ueda for some meaningful impetus. (FXStreet)

EUR/JPY reverses modest intraday dip and climbs back closer to a nearly 15-year peak. Hawkish remarks by ECB officials underpin the shared currency and lend some support. Intervention fears hold back bulls from placing aggressive bets and cap gains the upside. (FXStreet)

Gold price is declining towards the $1,900.00 support ahead of Fed Powell’s speech. Investors are cautious that hawkish remarks from Jerome Powell would propel fears of a recession in the US economy. Gold price has tumbled to near the 61.8% Fibonacci retracement at $1,909.00. (FXStreet)

Silver meets with some supply in the vicinity of the $23.00 mark, albeit lacks follow-through. The setup seems tilted in favour of bearish traders and supports prospects for further losses. A move beyond the 200-hour SMA/50% Fibo. confluence might offset the negative outlook. (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.