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17.08.2022 Market Report


EUR/USD consolidates the previous rebound amid a cautiously optimistic mood. US dollar takes a breather ahead of Fed minutes, the euro awaits Eurozone GDP. The shared currency remains weighed down by recession fears and gas crises.


GBP/USD is advancing above 1.2100, cheering broad US dollar weakness ahead of the critical UK inflation data. The annualized UK CPI is seen accelerating to 9.8% in July. The US data and Fed minutes are next of relevance for the pair. 


USD/JPY holds onto the latest bullish bias while picking up bids to refresh the intraday high near 134.40 as Tokyo opens on Wednesday. The yen pair’s latest run-up could be linked to the firmer yields.


AUD/USD fails to justify the previous day’s bullish Doji as it renews intraday low near 0.6990 after Australia’s Wage Price Index for the second quarter (Q2). Also exerting downside pressure on the Aussie pair is the mixed sentiment ahead of the US Retail Sales and Fed Minutes.


NZD/USD takes the bids to refresh intraday high near 0.6365 as bulls cheer the Reserve Bank of New Zealand’s (RBNZ) 50 basis points (bps) rate hike during Wednesday’s Asian session.


The USD/CAD pair witnessed some selling during the latter part of trading on Tuesday and eroded a part of the previous day’s strong move up to a one-week high. The intraday decline followed hawkish comments by Bank of Canada Governor Tiff Macklem, saying that Canadian inflation may have peaked, but it remains far too high. In fact, Statistics Canada reported that the headline CPI decelerated to the 7.6% YoY rate in July from the 8.1% in the previous month. Furthermore, the Core CPI, which excludes volatile food and energy prices, unexpectedly eased to the 6.1% YoY rate from the 6.2% in June. Nevertheless, the markets were quick to price in another oversized BoC interest rate hike in September, which, in turn, boosted the Canadian dollar.


USD/CHF extends its weekly gains, up to 1%, and erases last week’s losses.


Traders and fund managers have left crude oil markets in recent months, dropping activity to a seven-year low amid the worst global energy crisis in decades as investors become unwilling to deal with persistently high volatility.


Gold price consolidates weekly losses around $1,778 amid broad US dollar weakness heading into Wednesday’s European session. In doing so, the XAU/USD traders also portray the cautious mood of the FOMC meeting minutes.

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