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01.09.2022 Market Report


EUR/USD remains pressured towards 1.0000, as the US dollar bulls refuse to give up amid risk-aversion and surging Treasury yields. The downside in the pair, however, appears capped, courtesy of hawkish ECB rate hike expectations. Eurozone, US PMIs eyed. 


GBP/USD is off the lows but remains below 1.1600, sitting close to over two-year lows in early Europe. The US dollar index is firming up above 109.00, as Treasury yields rally across the curve on hawkish Fed bets. UK growth and political woes weigh on the pound.


USD/JPY remains bid for the fifth consecutive day as it refreshes the highest levels since 1998, up 0.45% intraday near 139.60 during early Thursday morning in Europe. The yen pair’s latest run-up could be linked to the robust US Treasury yields, as well as hawkish bets on the US Federal Reserve’s (Fed) next moves. Also keeping the quote firmer is the risk-off mood that underpins the US dollar’s safe-haven demand.


AUD/USD has broken to the downside on further US dollar strength, reaching near to 0.68 the figure which could be a last push for the week before a significant bullish correction. 


NZD/USD renews 1.5-month low after China’s activity numbers join broad risk-off mood to weigh on the Kiwi pair during Thursday’s Asian session. However, the cautious mood ahead of the top-tier US data tries to limit the downside, but eventually fails of late. That said, the pair pints 0.33% intraday loss during a three-day downtrend to 0.6090, at 0.6100 by the press time.


The USD/CAD pair is attempting an establishment above 1.3150 as the US dollar index (DXY) has climbed above 109.00 in the Asian session. The asset has displayed a bullish open test-drive move and is expected to display more gains ahead. At the press time, the major recorded an intraday high of 1.3167.


The USD/CHF pair is marching northwards gradually after a firmer rebound from 0.9740. The asset is expected to recapture its monthly highs at 0.9800 as the US dollar index (DXY) displayed stability on Wednesday despite weaker US Automatic Data Processing (ADP) Employment Change data.


Oil prices rose slightly on Thursday, recovering from recent losses as data showing steady U.S. crude demand offset uncertainty over potential production cuts by the OPEC+.


Gold price licks its wounds near monthly lows after testing the $1,700 mark. The US dollar rallies with yields as investors cheer hawkish Fed and ECB rate hike bets. XAU/USD could extend losses towards $1,688 on a firm break below $1,700.    

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