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12.08.2022 Market Report


EUR/USD is back in the red as the US dollar extends the overnight recovery. US Treasury yields hold near multi-week top amid hawkish Fed commentary. US Preliminary UoM Consumer Sentiment data eyed for fresh Fed rate hike pricing.


GBP/USD remains pressured below 1.2200, as investors refrain from placing big bets on the pound ahead of the critical UK GDP release. The UK economy is set to contract 0.2% in Q2. The US dollar consolidates its recovery, with eyes on Michigan CSI. 


The USD/JPY pair has slipped minutely after printing an intraday high of 133.50. On a broader note, the asset has displayed a pullback move after a perpendicular fall on Wednesday. Now, the pullback move is likely to get exhausted amid the unavailability of a potential trigger.


The AUD/USD pair has declined gradually below 0.7100 after printing a high of 0.7135 on Thursday. The asset has tumbled after sensing exhaustion in the upside momentum. However, that doesn’t warrant a bearish reversal for now but a corrective move, which is healthy for a decent uptrend.


The NZD/USD pair has continued its four-day winning streak and is likely to recapture its two-month high at 0.6260 as Business NZ has reported upbeat PMI data. The economic data has landed at 52.7, higher than the expectations of 52.5 and the prior release of 50.


USD/CAD dribbles inside a choppy range between 1.2760 and 1.2770 during Friday’s sluggish Asian session. In doing so, the Loonie pair traces the market’s inaction even as the sour sentiment underpins the US dollar’s rebound from the lowest levels in six weeks.


USD/CHF snaps four-day downtrend, grinds higher around the intraday top of 0.9426 as sellers retreat from the lowest levels since April, marked the previous day. In doing so, the Swiss currency (CHF) pair ignores recently positive options market signals ahead of the preliminary readings of the US Michigan Consumer Sentiment Index (CSI) for August.


Oil prices were muted on Friday, but were headed for strong weekly gains on the back of easing inflation risks, a strong demand forecast, and the prospect of OPEC supply cuts.


Gold bounced from the $1,783-$1,784 area on Thursday and stalled the previous day’s retracement slide from a multi-week high, though lacked follow-through. Signs of easing inflationary pressures in the US dragged the US dollar to its lowest level since late June.

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