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07.09.2022 Market Report


EUR/USD has slipped to near 0.9880 as the DXY has strengthened after a rebound in Services PMI. Investors should brace for a 50 bps rate hike announcement by the ECB. The Eurozone energy crisis will deepen further as the winter season will have more gas demand.


GBP/USD holds lower grounds near the two-year bottom, marked on Monday, as bears flirt with the 1.1450 while flashing the biggest daily loss in a week. With this, the Cable pair approaches the latest low near 1.1443 heading into Wednesday’s London open.


The relentless selling around the Japanese yen remains unabated through the Asian session on Wednesday, pushing the USD/JPY pair beyond the 144.00 mark for the first time since August 1998. Spot prices have rallied over 25% since the beginning of this year amid a big divergence in the monetary policy stance adopted by the Bank of Japan and the Federal Reserve. 


AUD/USD struggles to defend the 0.6700 intraday loss heading into Wednesday’s European session as risk-aversion joins softer data from Australia and China. Also exerting downside pressure on the Aussie pair are the hawkish Fed bets.


The NZD/USD pair is displaying a less-confident pullback after hitting the psychological mark of 0.6000 in the Asian session. The asset has remained in the grip of bears and is likely to display more weakness amid a broader strength in the US dollar index (DXY). In today’s session, the major witnessed a vertical fall after surrendering to the 0.6035 mark.


USD/CAD rises for the third consecutive day as it refreshes the weekly high near 1.3190 during Wednesday’s Asian session. In doing so, the Loonie pair cheers firmer yields and a risk-aversion wave to please buyers around the highest levels in two months ahead of the Bank of Canada (BOC) Monetary Policy Meeting.


The USD/CHF barely advances as the Asian session begins, up by 0.09%, consolidating in the 0.9765-0.9860 range for the fifth straight trading session. At the time of writing, the USD/CHF is trading at 0.9848, above its opening price, after hitting the respective weekly low and high, at 0.9765-0-9861, on Tuesday.


WTI crude oil prices hold lower ground near $86.50, after posting the biggest fall in a week the previous day, as traders fear demand drawdown during Wednesday’s Asian session. In doing so, the black gold ignores the output cut decision from the Organization of the Petroleum Exporting Countries and allies including Russia, known collectively as OPEC+.


Gold price (XAU/USD) has displayed a vertical downside move in the Asian session and has printed a fresh four-day low below $1,693.00. The yellow metal is expected to display more weakness as the US dollar index (DXY) is picking bids ahead of the speech from Federal Reserve (Fed) chair Jerome Powell, scheduled for Thursday.

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