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11.08.2022 Market Report


EUR/USD has tumbled to near 1.2850 amid a significant recovery in the DXY. A lower US CPI print has trimmed the odds of hawkish guidance while rate hike odds are solid. This week, the US Michigan CSI data will be of utmost importance.


GBP/USD remains pressured around 1.2200 heading into Thursday’s London open, having witnessed the most significant daily jump in two months the previous day. US Jobless Claims, PPI will also be important for intraday directions.


The USD/JPY pair has extended its recovery and has managed to sustain above the critical hurdle of 133.00 in the Asian session. The asset has elevated its pullback move after nosediving to near 132.00 on Wednesday. The further journey will likely remain critical as more upside would require sufficient strength from the greenback bulls.


The AUD/USD pair has dropped to near 0.7070 as the University of Melbourne has released the Aussie Consumer Inflation expectations lower at 5.9%. Earlier, the long-term inflation data landed at 6.3%. A slippage in aussie Consumer Inflation Expectations, which presents the consumer expectations of future inflation during the next 12 months, will force a decline in the guidance by the Reserve Bank of Australia (RBA).


NZD/USD is 1.85% higher, rising from a low of 0.6275 on the day to reach a high of 0.6434. The bulls have taken the baton on the back of weakness in US yields and the greenback following the US inflation report. The kiwi is sporting a 0.64 handle for the first time since early June, but it is vulnerable to a correction as illustrated below. 


USD/CAD picks up bids to refresh intraday high near 1.2785 as traders lick US inflation-led wounds at a two-month low during Thursday’s Asian session. In doing so, the quote justifies the US dollar’s recent rebound amid doubts over the Fed’s next move and China-linked headlines while ignoring upbeat prices of Canada’s main export item, WTI crude oil.


USD/CHF licks its wounds at the lowest levels since mid-April, taking rounds to 0.9420-25 during Thursday’s Asian session. The Swiss currency (CHF) pair dropped the most since mid-June the previous day in the aftermath of the US inflation data.


Oil prices rose on Wednesday, rebounding from losses early in the session, helped by encouraging figures on U.S. gasoline demand and as lower-than-expected U.S. inflation data drove investors into riskier assets.


Gold price is extending its retreat from one-month highs of $1,808, as the US dollar is in a recovery mode amid sluggish Treasury yields and mixed market sentiment. Investors assess the odds for a big Fed rate hike next month.

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