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28.07.2022 Market Report


EUR/USD is looking to surpass 1.0220 to record more gains as DXY has extended losses. Fed’s consecutive rate hike by 75 bps has failed to support the DXY. This week, the GDP data from the US and Eurozone will remain in limelight.


GBP/USD remains sidelined around monthly high, recently easing from the top. US dollar slumped after Fed’s 0.75% rate hike as Chairman Powell teased net neutrality. Downbeat British car production, fears of UK real-estate recession and political jitters probe Pound buyers.


USD/JPY braces for the biggest daily loss. In doing so, the yen pair cheers the broad US dollar weakness after the US Federal Reserve (Fed) announcements amid fears of economic slowdown in the US and Japan.


The AUD/USD pair has turned sideways after printing a fresh monthly high of 0.7013 on Wednesday. The asset is oscillating in a 0.6979-0.7003 range in the early European session and is likely to extend gains after an upside break of the charted territory.


NZD/USD remains sidelined around 0.6260-70 heading into Thursday‘s European session, after rising the most in a week. Alike other currency major pairs, the Kiwi pair also cheered the Fed-inspired USD weakness before the fears of recession and pre-data anxiety challenges the bulls. Additionally, mixed sentiment data from New Zealand also played a role to restrict the pair’s latest moves.


USD/CAD treats water around 1.2820-30 during Thursday morning in Europe, after refreshing the monthly low the previous day.


The asset is prepared to deliver a fresh bearish impulsive wave as the US dollar index (DXY) has shifted into a negative trajectory after the rate hike announcement by the Federal Reserve (Fed).


Crude opened higher in Asia today on the back of lower inventory levels and a weakening US Dollar in the aftermath of the Fed’s 75- basis point (bp) rate hike. On Tuesday, the American Petroleum Institute (API) reported that crude stockpiles fell by 4 million barrels last week. The drop in stockpiles was then confirmed on Wednesday when the Energy Information Administration (EIA) reported that holdings in the strategic petroleum reserve fell by 4.5 million barrels. This was a larger decrease than expected and takes the reserve down to 422 million barrels


Gold price is preserving its less hawkish Fed-induced gains so far this Thursday, as bulls are biding time ahead of the US advance Q2 GDP release. The Fed raised rates by the expected 75 bps on Wednesday but abandoned its forward guidance, disappointing the hawks.

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