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12.01.2023 Market Report


EUR/USD is extending its bullish momentum toward 1.0800, awaiting the all-important US CPI data on Thursday. The pair capitalizes on hawkish ECB commentary while the US Dollar licks its wounds amid weaker US Treasury bond yields. 


GBP/USD has been stuck in a tight pre-US Consumer Price Index red calendar event range in Asia of between 1.2132 and 1.2165. The bears have been in control for the most part within a choppy phase of consolidation below the initial balance highs for the week above 1.2200. 


USD/JPY is resuming its sell-off from the high of 132.48, heading toward 131.00 in early Europe. The Japanese yen jumped on reports that the BoJ is up for reviewing the side effects of massive monetary easing in the policy meeting next week.


Despite lacking follow-through, AUD/USD clings to mild gains around 0.6920 amid slightly positive market sentiment during early Thursday. In doing so, the Aussie pair cheers the early-day economics from Australia and China, as well as hopes of softer US inflation, amid a cautious mood ahead of the key US Consumer Price Index (CPI) for December.


NZD/USD dribbles around 0.6360-70 as bulls and bears jostle ahead of the critical US inflation data. Adding strength to the Kiwi pair traders’ indecision are the recent mixed signs from China’s Consumer Price Index (CPI) and Producer Price Index (PPI) data for December, which flashed early Thursday.


The USD/CAD pair is displaying a sideways auction in a 1.3404-1.3440 range in the Asian session. The Loonie asset is unable to find any direction as investors have restricted themselves from building potential positions till the release of the United States inflation data. Also, the major is following the footprints of the US Dollar Index (DXY).


The USD/CHF pair has picked strength after a minor correction to near 0.9300 in the Asian session. The Swiss franc asset faced barricades near 0.9325 in an attempt to extend its upside journey. On Wednesday, the major displayed a responsive buying action after dropping to near 0.9204. The major could remain inside the woods ahead of the release of the United States inflation data. Meanwhile, the risk appetite of investors is significantly improved as S&P500 has displayed back-to-back bullish trading sessions despite anxiety ahead of the release of the US Consumer Price Index (CPI) data. The US Dollar Index (DXY) is hovering around 103.00.


Oil prices edged up on Thursday, building on gains in the previous session as China’s demand outlook improved, though gains were limited ahead of upcoming inflation data from the United States.


Gold price is seeing fresh demand early Thursday, as bulls fight back control amid typical cautious trading ahead of the highly anticipated United States Consumer Price Index (CPI) data release. The US Dollar is consolidating near seven-month troughs, undermined by falling US Treasury bond yields.

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