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29.08.2022 Market Report


EUR/USD remains pressured towards 0.9900, eyeing a fresh two-decade low in early Europe. US dollar marches higher with yields amid Fed Powell’s hawkish stance and risk-aversion. ECB-speak and German fiscal stimulus news fail to rescue EUR bulls. 


GBP/USD is trading around 1.1650, vulnerable at the lowest levels since March 2020. Cable suffers amid broad US dollar strength and UK recessionary fears on surging energy costs. The UK Summer Bank Holiday could exaggerate moves. 


USD/JPY takes the bids to renew the monthly high around 138.60 during Monday’s Asian session. In doing so, the yen pair takes clues from the firmer Treasury yields, as well as the monetary policy divergence between the US Federal Reserve (Fed) and the Bank of Japan (BOJ), to keep buyers directed towards the yearly high marked in July.


AUD/USD remains on the back foot as sellers keep reins around a 1.5-month low heading into Monday’s European session. That said, the Aussie pair renews the multi-day bottom around 0.6840 by the press time.


The NZD/USD pair has attempted a firmer rebound after declining to near 0.6100 in the Asian session. The pair has given an upside break of the consolidation formed in a narrow range of 0.6106-0.6120 and is expected to display a firmer pullback move ahead.


USD/CAD remains on the front foot around 1.3050, extending Friday’s heavy gains towards a one-week high, as buyers cheer during Monday’s initial Asian session.


USD/CHF picks up bids to refresh one-week high around 0.9685. Speaking at the Kansas City Fed annual Jackson Hole symposium on Saturday, Swiss National Bank (SNB) President Thomas Jordan warned of persistently higher inflationary pressure.


Oil prices inched higher on Monday as hopes of a supply cut by the OPEC offset heightened concerns over an economic slowdown forecast by the U.S. Federal Reserve. Crude prices strengthened last week after Saudi Arabia, which heads the Organization of Petroleum Exporting Countries (OPEC), said that it could cut supply at any time to help stabilize crude prices.


Gold price extends the previous sell-off towards $1,700, as US dollar strength remains unabated. US Treasury yields rise on hopes for aggressive Fed tightening, courtesy of Powell. XAU/USD eyes the July 27 low of $1,712 before attacking the $1,700 mark.

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