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24.08.2022 Market Report


EUR/USD is heading south towards two-decade lows near 0.9900, as risk-off flows dominate and offer aid to the safe-haven US dollar. The German energy crisis has put EUR bulls on the tenterhooks. 


GBP/USD reverses the bounce off 2.5-year low, pressured around intraday bottom. Money market bets hint at 4.0% BOE rate in March, from 1.75% currently. UK data appeared comparatively better than the US ones but Sunak’s defense of BOE appear to favor bears.


The USD/JPY pair is marching towards 137.00 after a sheer decline to near 135.80 on Tuesday. The asset went through the carnage on Tuesday after the dismal US Purchasing Managers Index (PMI) data forced the market participants to dump the US dollar index (DXY). However, the DXY is expected to regain the upside track as the Federal Reserve (Fed) is sticking to its path of hiking interest rates despite a contraction in private sector activities as their focus is on achieving price stability.


The AUD/USD pair has witnessed a firmer rebound after correcting to around 0.6900 in the early European session. The asset is advancing confidently and is expected to reclaim its three-day high above 0.6960 as the US dollar index (DXY) has trimmed its gains after facing barricades around 108.80.


NZD/USD retreats towards 0.6200 during the initial Asian session on Wednesday, after bouncing off the monthly low, as the market’s fears of economic slowdown and the Fed’s aggression remain intact ahead of this week’s key data/events. Also challenging the quote could be looming concerns over China and a light calendar that allows traders to consolidate recent moves.


USD/CAD consolidates the biggest daily slump in a fortnight as it seesaws near the daily top, up 0.20% around 1.2980 during early Wednesday morning in Europe. In doing so, the Loonie pair tracks the firmer US dollar, as well as the softer oil prices, amid a sluggish session ahead of the US Durable Goods Orders for July.


The USD/CHF marginally advances on Tuesday after hitting a daily high nearby the 0.9700 figure, but weaker than estimated US data weighed on the greenback. Nevertheless, the USD/CHF keeps trading above its opening price, at 0.9646, at the time of writing.


Oil prices fell on Wednesday, taking a breather from a near 4% surge the previous day, on receding fears of an imminent output cut by the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+.


Gold price is going through a corrective mode after failing to sustain above the critical hurdle of $1,750.00. The precious metal has witnessed a short-live correction as the DXY has managed to recover more than half of its entire losses recorded on Tuesday.

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