Pre Loader

04.01.2023 Market Report


EUR/USD is rebounding toward 1.0600 amid a broad US Dollar retreat. Hawkish ECB-speak power the Euro amid weak US Treasury yields. EUR/USD is not out of the woods yet amid a symmetrical triangle breakdown.


GBP/USD has turned sideways below 1.2000 as investors await US ISM PMI data for fresh cues. Cable is defending mild gains, as the US Dollar retreat amid a broad sell-off in the US Treasury yields amid a cautiously optimistic mood. Fed Minutes also eyed. 


USD/JPY is on the defensive below the 131.00 level, in what seems to be another volatile Asian trading session so far this Wednesday. The return of Japanese traders to their desks after a long New Year holiday combined with negative Japan indices and US Treasury yields add to the downside pressure on the pair.


AUD/USD is firming up to recapture the 0.6800 barrier, catching a fresh bid at around the 0.6720 region amid the return of risk flows in Asia this Wednesday. Expectations of a dovish Federal Reserve (Fed) Minutes are helping lift the market mood, in turn, underpinning the higher-yielding Australian Dollar at the expense of the safe-have US Dollar. The renewed weakness in the US Treasury yields across the curve is also hurting the sentiment around the greenback.


The NZD/USD pair is oscillating below the critical hurdle of 0.6250 in the early Asian session. The Kiwi asset rebounded firmly after refreshing a monthly low at 0.6200 amid the risk aversion theme. Investors preferred to deploy their funds into safe-haven to dodge volatility ahead of United States ISM Manufacturing PMI and Federal Open Market Committee (FOMC) minutes.


The USD/CAD pair is displaying back-and-forth moves in a narrow range below the 1.3600 mark in the early Asian session. The Loonie asset is expected to extend its upside journey by surpassing the immediate hurdle of 1.3680 amid caution in the global market.


The USD/CHF pair is displaying rangebound moves around 0.9350 in the Asian session. The Swiss franc asset has turned lackluster as investors are likely to make an informed decision after the release of the Federal Reserve (Fed)’s December meeting minutes and Wednesday’s Swiss Consumer Price Index (CPI).


Oil edged lower on Wednesday after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy.


Gold price is holding sizable gains on its four-day uptrend on Wednesday, helped by a sharp decline in the US Treasury bond yields across the curve. Risk appetite and pre-Fed Minutes positioning drag the US Dollar lower.

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.