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09.01.2023 Market Report


EUR/USD is holding on to the upside below 1.0700 in the early European trades. The pair is taking advantage of the extended weakness in the US Dollar amid hopes of a dovish Fed pivot and China’s reopening optimism. Eurozone data awaited. 


GBP/USD is trading with sizeable gains at around 1.2150 amid risk-on impulse ahead of the London open. Broad US Dollar weakness is underpinning the pair, as investors assess Fed rate hike expectations and BOE policymaker Mann’s comments on inflation. 


The USD/JPY pair surrendered the immediate cushion of 132.00 in the early Asian session. The major will likely shift its auction profile below 132.00 amid sheer volatility in the US Dollar Index (DXY). Trading action could be lower in USD/JPY on Monday as Japanese markets are closed on account of Coming of Age Day.


The AUD/USD pair is displaying a sideways auction around the immediate hurdle of 0.6930 in the Asian session. The Aussie asset is expected to continue its upside journey amid sheer volatility in the US Dollar Index (DXY). The USD Index has dropped below 103.25, at the time of writing, and is expected to refresh its six-month low below the critical mark of 103.00 amid a risk-appetite theme.


NZD/USD picks up bids to 0.6355 as it pares the week-start gap towards the south, after rising the most in two months the previous day. In doing so, the Kiwi pair takes clues from the market’s cautious optimism amid mostly downbeat US data and the risk-positive headlines from China, one of the key consumers of New Zealand and the world’s biggest commodity user.


USD/CAD bears occupy the driver’s seat as the Loonie pair slides to the lowest levels in a month heading into Monday’s European session. In doing so, the quote takes clues from the market’s upbeat sentiment, as well as firmer prices of Canada’s main export item WTI crude oil.


The USD/CHF pair is likely to continue its downside journey below 0.9267 as investors have underpinned the risk-appetite theme in the market. The Swiss Franc asset has sensed significant barricades around 0.9280, which might infuse more pressure on the US Dollar ahead.


Oil prices climbed on Monday as the borders reopened in China, the world’s top crude importer, boosting the outlook for fuel demand growth and offsetting global recession concerns.


Gold price is consolidating the two-day uptrend near the highest level in eight months at $1,880 this Monday. The USD is extending its bearish momentum in tandem with the US Treasury bond yields following Friday’s critical US economic data.

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