Market Update - 18 Aug 2023

The EUR/USD pair edges higher during the Asian session on Friday and for now, seems to have snapped a five-day losing streak to a six-week low, around the 1.0855 region touched the previous day. The uptick, however, lacks follow-through, with spot prices currently trading with only modest intraday gains around the 1.0885-1.0890 region, up 0.15% for the day. (FXStreet)

The USD/JPY pair loses its traction below mid-145.00s heading into the early European session on Friday. The upbeat Japanese data supports the Japanese Yen against its rivals. The major pair retraces from a Year-To-Date (YTD) high of 146.56 and currently trades near 145.18, losing 0.45% on the day. (FXStreet)

GBP/USD snaps a three-day winning streak, currently hovering around 1.2720 in the Asian session on Friday. The GBP/USD pair is experiencing downward pressure due to softer retail sales data from the United Kingdom (UK). (FXStreet)

USD/CHF struggles for clear directions around 0.8780 after posting the first daily loss of the week the previous day. In doing so, the Swiss Franc (CHF) pair traces the market’s lackluster moves amid anxiety ahead of the mid-ties Swiss data, as well as the next week’s annual event at the Jackson Hole Symposium where the top-tier central bankers speak. (FXStreet)

The AUD/USD pair surrenders its modest intraday gains to the 0.6425-0.6430 region and hovers near the lower end of its daily range during the early European session on Friday. Spot prices currently trade around the 0.6400 round-figure mark and remain well within the striking distance of the lowest level since November 2022 touched the previous day. (FXStreet)

USD/CAD languishes at the highest level since June 01, recently easing from the multi-day top, as market players seek more clues to defend the five-day uptrend heading into Friday’s European session. In doing so, the Loonie pair justifies recently firmer prices of the WTI crude oil, Canada’s key export item, as well as benefits from the US Dollar’s retreat. (FXStreet)

NZD/USD consolidates the weekly losses, the fourth consecutive one, amid a sluggish Friday morning as the Kiwi pair bounces the 0.5900 key support to print the first daily gain, so far, in nine. That said, the quote clings to mild gains around 0.5930 by the press time. (FXStreet)

The USD/MXN pair struggles to gain any meaningful traction on Friday and oscillates in a narrow trading band through the early part of the European session. Spot prices, however, manage to defend the 17.0800-17.0850 confluence support and for now, seem to have stalled the previous day's modest pullback from over a one-week high. (FXStreet)

EUR/GBP picks up bids to extend the intraday high near 0.8545 as it cheers the downbeat UK data amid early Friday morning in London. In doing so, the cross-currency pair also benefits from the recently easing fears about the economic slowdown in Eurozone and Germany. Above all, sluggish markets and cautious mood ahead of the next week’s key events allow the quote to print the first daily gains in six while bouncing off the lowest level in five weeks. (FXStreet)

The GBP/JPY cross remains under pressure for the second consecutive day heading into the early European session on Friday. Market turn cautious amid the fear of China’s debt crisis and real-estate woes, which boost the Japanese Yen, a traditional safe-haven currency. However, the release of the UK Retail Sales could provide a clear direction for the cross. (FXStreet)

EUR/JPY holds lower ground at the intraday bottom of around 158.20 heading into Friday’s European session. In doing so, the cross-currency pair takes clues from the recent pullback in the Treasury bond yields, as well as upbeat prints of Japan’s inflation data, amid a sluggish trading day. (FXStreet)

The GBP/USD pair struggles to gain any meaningful traction on Friday and oscillates in a narrow range below a one-week high, around the 1.2785 region touched the previous day. Spot prices currently trade around mid-1.2700s, nearly unchanged for the day and holding steady around the 23.6% Fibonacci retracement level of the recent downfall from a 15-month peak touched in July. (FXStreet)

USD/INR remains pressured around 83.00, down for the third consecutive day heading into Friday’s European session, as market players prepare for the next week’s top-tier events amid a light calendar at home. Also favoring the Indian Rupee (INR) buyers is the downbeat US Dollar as it traces the Treasury bond yields after refreshing the Year-To-Date (YTD) top. (FXStreet)

USD/CNH struggles to keep bears on the throne amid Friday’s sluggish trading, despite wading through the bullish bias by reversing from the yearly high the previous day. That said, the offshore Chinese Yuan (CNH) pares intraday losses, the second one in the row, to around 7.2900 by the press time. (FXStreet)

People’s Bank of China (PBoC) set the USD/CNY central rate at 7.2006 on Friday, versus the previous fix of 7.2076 and market expectations of 7.3065. It's worth noting that the USD/CNY closed near 7.2888 the previous day. (FXStreet)

WTI prices attempted a bounce on Thursday amidst diminishing open interest and volume, which is suggestive that the continuation of this move seems not favoured in the very near term. In the meantime, the $78.00 region is expected to hold the downside for the time being. (FXStreet)

Prices of natural gas rebounded mildly on Thursday amidst dwindling open interest and volume. That said, further recovery appears under pressure while the commodity appears so far well underpinned around the $2.50 region per MMBtu. (FXStreet)

Gold price gains some positive traction on Friday and for now, seems to have snapped a four-day losing streak to its lowest level since March 13, around the $1,885 region touched the previous day. The XAU/USD maintains its bid tone through the early part of the European session and currently trades just above the $1,890 level, up around 0.30% for the day. The intraday uptick, however, lacks bullish conviction, warranting some caution before positioning for any meaningful recovery move. (FXStreet)

Silver gains some positive traction for the second successive day on Friday and climbs back closer to over a one-week top touched the previous day. The white metal currently trades around the $22.85 region, up just over 0.80% for the day, and seems poised to build on its steady intraday ascent amid a modest US Dollar (USD) weakness. (FXStreet)

Source: FXStreet

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