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09.08.2022 Market Report


EUR/USD is displaying back and forth moves in a tight range around 1.0200, as investors await US inflation data for a fresh direction. Subdued US dollar and yields offset the European gas crisis and recession fears. 


GBP/USD is edging higher towards 1.2100, underpinned by a steady US dollar amid a cautiously optimistic market mood. Bumper US NFP data ramped up aggressive Fed tightening expectations. UK political woes and a dovish BOE rate hike could cap the pound’s upside. 


The USD/JPY pair is eyeing a break above the immediate hurdle of 135.00 despite a lackluster performance by the US dollar index in the Asian session. On a wider note, the asset is displaying topsy-turvy moves in a range of 134.35-135.58 after a vertical upside move from a low near 133.00. It is worth noting that the USD/JPY pair is displaying upside momentum despite a subdued performance by the DXY in the Tokyo session. This indicates that the yen bulls are extremely weaker.


The AUD/USD pair is displaying a time correction after a perpendicular upside move to near 0.7000. Earlier, the aussie bulls witnessed a juggernaut rally after defending the weekly lows of 0.6886 on Friday.


NZD/USD bulls struggle amid mixed retail sales data at home and an absence of major catalysts after rising the most in three weeks the previous day. That said, the Kiwi pair moves around 0.6280-85 during the initial hour of Tuesday’s Asian session.


USD/CAD licks its wounds as it renews daily tops near 1.2870 while paring the biggest loss since July 19 during Tuesday’s Asian session. The loonie pair dropped the most in three weeks the previous as a recovery in prices of Canada’s main export, WTI crude oil, joined a pullback in the US dollar. Also exerting downside pressure on the USD/CAD prices was the cautious optimism in the markets ahead of the US Consumer Price Index (CPI) for July, up for publishing on Wednesday.


USD/CHF remains depressed around 0.9550 amid a sluggish Asian session on Tuesday. Even so, the sellers remain hopeful while tracing a downside break of a one-week-old ascending trend line.


Oil prices retreated from recent gains on Tuesday, with WTI futures hovering just above the $90 mark as focus turned to upcoming U.S. inflation data for more cues on monetary policy. As of 2002 ET (0002 GMT), U.S. Crude Oil WTI Futures fell 0.5% to $90.34, while Brent Oil Futures shed 0.2% to $96.27.


Gold price has failed to capitalize on the previous rebound, despite the sustained weakness in the US dollar and the Treasury yields. Bulls have rather turned cautious amid ongoing Chinese-Taiwan issue and ahead of the key US inflation data.

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