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29.07.2022 Market Report


EUR/USD is holding onto the latest advance above 1.0200, as bulls take a breather ahead of the EU preliminary inflation data. The US dollar remains heavy amid renewed sell-off in the yields, as economic woes bite. US PCE is inflation eyed as well. 


GBP/USD is trading close to 1.2200, consolidating gains as the US dollar resumes the post-Fed downside amid recession fears. US PCE inflation remains in focus. The BOE is set for a 50 bps rate hike next week.


The USD/JPY pair has given a downside break of the consolidation formed in a narrow range of 134.18-134.67 in the Asian session. The downside break is extremely sheer and has dragged the asset below 133.23 in no time.


AUD/USD reverses the previous day’s pullback from a 1.5-month top as it picks up bids to 0.7000 during Friday’s Asian session. In doing so, the Aussie pair justifies its risk-barometer status during the sluggish session.


NZD/USD is trading at 0.6291 and a touch higher in early Asia ahead of the Tokyo equities open. The pair has benefitted from a friendlier environment in the commodities and equities space following the Federal Reserve meeting on Wednesday and a statement that left the futures markets tied to Fed policy expectations tilted towards a more moderate increase for the next meeting.


The asset has remained sideways in the Asian session and is likely to turn imbalance on the downside as lower US Gross Domestic Product (GDP) data has triggered recession fears in the mighty US economy.


USD/CHF takes offers to refresh the monthly low near 0.9515 heading into Friday’s European session amid broad US dollar weakness. The Swiss currency (CHF) pair’s latest losses could be linked to the recession fears in the US and extended south-run by the US Treasury yields. Also exerting downside pressure on the USD/CHF prices is the cautious mood ahead of the Fed’s preferred inflation gauge, namely the Core Personal Consumption Expenditure (PCE) Price Index, expected 0.5% MoM for July versus 0.3% prior.


Oil was up on Friday morning in Asia. Investors now focus on the Organization of the Petroleum Exporting Countries and allies (OPEC+)’s meeting next week, where the bloc will decide the oil output.


Gold price is on track to book the second straight weekly advance and the biggest gain over the week since mid-May. The sentiment around the Fed rate hike expectations and US economic gloom keeps the buoyant tone intact around the bright metal, as it holds near fresh three-week highs above $1,750.

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