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23.12.2022 Market Report


EUR/USD clings to mild gains near 1.0610 as the pair buyers retake control after a two-day losing streak. That said, the major currency pair’s latest inaction could be linked to the market’s cautious mood, as well as the holiday season, during early Friday in Europe.


GBP/USD steps back from intraday high of 1.2058 heading into Friday’s London open. In doing so, the Cable pair fails to defend the first daily gains in three weeks. The US Dollar was supported by positive US data that could keep the Federal Reserve hawkish for longer.


USD/JPY is flat on the day near 132.40 and consolidating the drop that occurred into the 130.60s in an extension of the late December drive to the downside. The US Dollar firmed on Thursday but as measured by the DXY index vs. a basket of currencies, it has so far failed to meaningfully recoup the 3.8% slump that followed Tuesday’s Bank of Japan (BoJ) news. Nevertheless, US data has supported the hawkish sentiment surrounding the Federal Reserve (Fed).


AUD/USD bulls are back to the table and approach the 0.6700 threshold as they pick up bids to refresh intraday top near 0.6690 during early Friday. In doing so, the Aussie pair justifies its risk barometer status while ignoring downbeat data at home, as well as the market’s anxiety ahead of the key US data.


NZD/USD bears keep the reins around 0.6240, marking the fifth consecutive daily fall near the intraday low while bracing for the biggest daily slump since late September. That said, the Kiwi pair’s latest losses could be linked to the sour sentiment in the market, as well as the hawkish Fed bets, ahead of the key US statistics surrounding inflation and output.


The USD/CAD pair struggles to capitalize on the previous day’s goodish rebound from a one-week low and meets with a fresh supply on Friday. The pair remains depressed heading into the European session and is currently placed near the lower end of its daily range, around the 1.3630-1.3625 region.


USD/CHF seesaws around intraday high as traders await fresh clues during early Friday. In doing so, the Swiss Franc (CHF) pair portrays the market’s cautious mood ahead of the key US data, despite defending the US Dollar’s strength. Also challenging the pair bulls could be the mixed macros and the year-end season that knocks on the door.


Oil prices climbed for a fourth straight day on Thursday with U.S. crude, heating oil jet fuel stocks growing tighter just as a wintry blast hits the United States and travel is set to soar for its holiday season.


Gold price is seen oscillating in a narrow band, below the $1,800 mark, during the Asian session on Friday and consolidating the previous day’s fall of more than 1%. A modest US Dollar downtick turns out to be a key factor lending some support to the dollar-denominated commodity, though reviving bets for a more aggressive policy tightening by the Fed act as a headwind. Against the backdrop of a more hawkish commentary by the Fed last week, the upbeat US macro data released on Thursday fueled expectations that the US central bank will have to retain its hawkish stance to tame inflation.

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