Market Update - 24 Aug 2023

GBP/JPY holds ground near 183.80 due to downbeat Japan’s inflation data. Weekly low appears to be the support following 38.2% Fibo. The cross could face a barrier around 184.00 psychological level. (FXStreet)

EUR/JPY fails to capitalize on the overnight modest gains and meets with a fresh supply on Friday. Bets that the ECB will pause its rate-hiking cycle in September act as a headwind for the cross. The BoJ’s dovish stance continues to undermine the JPY and helps limit any meaningful decline. Traders also seem reluctant ahead of speeches by ECB’s Lagarde and BoJ’s Ueda on Saturday. (FXStreet)

USD/CAD consolidates below the 1.3600 psychological level. Investors await Fed Chair Powell’s speech, seeking further cues on the inflation outlook. China's economic situation drives Oil prices lower, influencing the Loonie pair. (FXStreet)

The index surpasses the 104.00 hurdle to print new highs. Chair Powell will speak later at the Jackson Hole Symposium. Final Michigan Consumer Sentiment takes centre stage in the US docket. The greenback gathers extra steam and surpasses the 104.00 barrier to print new multi-week peaks when tracked by the USD Index (DXY) at the end of the week. (FXStreet)

USD/JPY strengthened on Japanese inflation and US employment data. Traders turn cautious ahead of speeches from central banks in Jackson Hole. Japan’s inflation fell amid US Initial Jobless claims printed lower than expected. (FXStreet)

EUR/GBP consolidates its gain around the 0.8580 area ahead of the ECB’s Lagarde speech. The German Gross Domestic Product (GDP) Q2 remained unchanged at 0% QoQ, the annual figure came in at -0.2%. The downbeat UK data raised concerns of an impending recession in the economy. Investors await the ECB’s Lagarde speech later in the day. (FXStreet)

EUR/USD renews 10-week low amid broad US Dollar strength. Second-rank ECB, Fed officials seem struggling to defend hawkish policy bias but comparatively better US data weighs on Euro. Final readings of German Q2 GDP, IFO figures for August and US consumer sentiment numbers will decorate calendar. Hawkish comments from ECB’s Lagarde will be weighed against recession concerns, Fed’s Powell can fuel Greenback by defying rate cuts. (FXStreet)

USD/CAD attracts buyers for the second straight day and climbs back closer to the monthly peak. A bullish USD acts as a tailwind, though rebounding Oil prices might underpin the Lonoie and cap. The overbought RSI (14) might also hold back bulls from placing fresh bets ahead of Fed's Powell. (FXStreet)

GBP/USD takes offers to refresh multi-day low amid broad US Dollar strength. Improvement in UK sentiment fails to defend Cable buyers amid British recession woes. Mostly firmer US statistics, hawkish Fed talks exert downside pressure on Pound Sterling. BoE’s Bailey bears more pressure than Fed’s Powell as Jackson Hole closes in. (FXStreet)

USD/CHF gains momentum for two straight days above the 0.8850 mark on Friday. The pair holds above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope. The immediate resistance level will emerge at 0.8875; 0.8838, acts as an initial support level for the pair. (FXStreet)

USD/RUB holds above 94.70 amid the USD demand. Russian President Vladimir Putin said that BRICS members will consider shifting trade away from USD. Traders will closely watch Fed Chairman Jerome Powell's Speech. (FXStreet)

NZD/USD continues losing ground for the second straight day and hits a fresh YTD low. Bets for more Fed rate hikes continue to boost the USD and exert pressure on the pair. Spot prices show resilience below 0.5900 as traders await Fed Chair Powell’s speech. (FXStreet)

AUD/USD trades lower around 0.6410 on upbeat US economic data. Traders turn cautious due to mixed statements made by Fed officials. Improved US employment data undermined the AUD/USD pair. (FXStreet)

WTI crude oil recovers from key EMA confluence within 13-day-old falling wedge bullish chart formation. Steady RSI, bearish MACD signals and 4.5-month-old horizontal resistance area prod Oil buyers targeting fresh yearly top. Energy benchmark sellers need to conquer $77.30–20 zone to tighten grips. (FXStreet)

Thursday’s advance in prices of natural gas was on the back of shrinking open interest, which seems to indicate that the continuation of the recovery is not favoured in the very near term. In the meantime, occasional bullish attempts remain capped by the $3.00 mark per MMBtu. (FXStreet)

Gold price meets with some supply and snaps a four-day winning streak to a two-week high. The US Dollar buying remains unabated and is seen driving flows away from the XAU/USD. Looming recession risks might help limit losses ahead of Fed Chair Jerome Powell's speech. (FXStreet)

Silver moves away from a multi-week high set on Wednesday, albeit lacks follow-through. A convincing break below the $23.80 confluence should pave the way for deeper losses. Bulls might now wait for a move beyond the $24.35 region before placing aggressive bets. (FXStreet)

Source: FXStreet

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