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18.08.2022 Market Report


EUR/USD turns south after rejection at 1.0200 as risk-off flows dominate. US dollar finds demand, despite weaker yields and cautious Fed minutes. The euro looks vulnerable amid the deepening EU energy crisis and growth risks.


The GBP/USD pair witnessed an intraday turnaround on Wednesday and plunged over 100 pips from the daily peak touched in reaction to hotter-than-expected UK consumer inflation figures. Bulls, however, struggled to capitalize on the move amid speculations that an economic downturn might force the UK central bank to adopt a gradual approach to raising interest rates. This, along with the emergence of fresh US dollar buying, exerted heavy downward pressure on the major.


USD/JPY takes offers to renew intraday low near 134.90 as it consolidates weekly gains on Thursday’s Tokyo open. The yen pair’s latest weakness could be linked to the chatters surrounding the Japan-China ties and employment conditions in the Asian major. Also favoring the bears could be the latest Fed Minutes. However, fears of recession favor the pair bulls amid a sluggish session.


AUD/USD bears the burden of another downbeat job number during Thursday’s Asian session, not to forget the fresh concerns surrounding Taiwan. That said, the Aussie pair remains pressured around 0.6935, after refreshing the daily low to 0.6924, by the press time.


NZD/USD is trading at 0.6276 and flat for the day having ranged between 0.6274 and 0.6282 so far following some comments from the Reserve Bank of New Zealand’s governor, Adrian Orr. 


USD/CAD refreshes weekly highs around 1.2936 in the North American session, triggered by modestly positive US Retail Sales data, while a risk-off impulse in the markets added to overall US dollar strength, to the detriment of the Canadian dollar.


USD/CHF renews its weekly high to 0.9515 as the US dollar buyers return to the table, after a brief absence the previous day. In doing so, the Swiss currency (CHF) pair rises for the third consecutive day by the press time of early European morning on Wednesday.


Oil prices were little changed on Thursday as investors grappled with falling stockpiles in the United States, rising output from Russia and worries about a potential global recession.


Gold price is fading the early bounce this Thursday, as the US dollar is seeing renewed buying interest amid the extension of risk-off flows. Dire Chinese economic outlook combined with Fed’s caution on a potential downturn keep investors on the edge.

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