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30.08.2022 Market Report


EUR/USD is defending mild gains around 1.0000 amid a cautiously optimistic mood. The US dollar keeps the corrective mode intact amid falling Treasury yields. Investors assess hawkish ECB and Fed rate hike bets ahead of German inflation and US Consumer Confidence.


GBP/USD is trading around 1.1700, lacking a follow-through upside, despite a broadly weaker US dollar. The renewed downside in the Treasury yields and upbeat risk tone weigh down on the safe-haven dolllar. US data awaited. 


USD/JPY takes offers to renew intraday low around 138.40 during early Tuesday morning in Europe. In doing so, the yen pair prints the first daily loss in three while reversing from the 1.5-month high marked the previous day.


AUD/USD bears return to the table, after an upbeat start to the key week, as risk-aversion underpins the US dollar’s safe-haven demand during early Tuesday morning in Europe. That said, the Aussie pair drops 0.37% to revisit 0.6880 levels, after a failed rebound from the 1.5-month low the previous day.


The NZD/USD pair is displaying back-and-forth moves in a narrow range of 0.6139-0.6152 in the early European session. The asset is trading lackluster after a firmer rebound from Monday’s low near 0.6100. The overall context is indicating that the pullback move by the kiwi bulls will escalate further as the market mood looks firmer. The risk undertone seems bullish as the impact of the hawkish stance adopted by Federal Reserve (Fed) chair Jerome Powell at the Jackson Hole Economic Symposium looks fading now.


The USD/CAD pair witnessed a modest intraday pullback on Monday and retreated nearly 90 pips from its highest level since mid-July. The downfall dragged spot prices back below 1.3000 and was sponsored by a combination of factors. Speculations that major producers could cut output to stall the recent fall in crude oil prices provided a modest lift to the black liquid. This, in turn, underpinned the commodity-linked loonie and prompted some selling around the major amid a sharp US dollar turnaround from a fresh two-decade high.


USD/CHF holds onto the early Asian session’s bearish moves while snapping a two-day uptrend around the monthly high. In doing so, the Swiss currency (CHF) pair remains inside a short-term ascending triangle formation.


Oil prices dipped on Tuesday, paring some gains from the previous session, as the market feared that more aggressive interest rates hikes from central banks may lead to a global economic slowdown and soften fuel demand.


Gold price (XAU/USD) is resuming the downside towards monthly lows of $1,720, shrugging off the weakness in the US dollar and the yields. Hopes of aggressive tightening by the Fed and ECB hurt the non-interest-bearing bullion. 

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