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13.01.2023 Market Report


EUR/USD retreats from a nine-month high toward 1.0800 amid a light EU calendar on Friday. The currency pair remains on the back foot, as the US Dollar recover alongside US Treasury yields following the US inflation data-led blow. US Consumer Sentiment data eyed. 


GBP/USD is trading close to 1.2200, entering an upside consolidative mode ahead of the key UK GDP and industrial data early Friday. Broad-based US Dollar rebound amid mixed markets and a renewed uptick in the Treasury yields weighs on the pair. 


USD/JPY is pressured and on the offer following a series of impactful macro events, both scheduled and unscheduled, including the Bank of Japan headlines (Wednesday) and US Consumer Price Index (Thursday). At the time of writing, the pair is lower by some 0.20% trading around 129.00 and within a range of 128.64 and 129.42. 


AUD/USD fails to cheer China’s housing policy support, as well as upbeat trade numbers for 2022, amid fears of hardships in 2023. In doing so, the Aussie pair reverses the US CPI-inspired gains to 0.6950 amid a lackluster Asian session on Friday.


NZD/USD prints mild losses around 0.6390-85 as it consolidates the US inflation-led gains during a sluggish Asian session on early Friday. In doing so, the Kiwi pair also portrays the traders’ anxiety ahead of China’s trade numbers for December and the first prints of the US Michigan Consumer Sentiment Index (CSI) for January.


USD/CAD bears are taking a breather at the lowest levels in almost two months around 1.3365, following the biggest daily slump in a week, as traders seek more clues to extend the US inflation-led south-run. That said, the Loonie pair dropped heavily after the US Consumer Price Index (CPI) fuelled expectations of a softer Fed rate hike in December and drowned the US Dollar, which in turn allowed the WTI crude oil to print a four-day uptrend and refresh weekly top.


USD/CHF adds to the weekly gains around 0.9285, despite previous slump to a 10-month low, as traders await more clues to confirm the dovish bias from the Federal Reserve (Fed). Also likely to have probed the Swiss Franc (CHF) bears could be the latest chatters surrounding the US-China ties and a light calendar.


Oil prices slipped in early trade on Friday but were on track for gains of more than 6% for the week on solid signs of demand growth in top crude-oil importer China and expectations of less aggressive interest rate rises in the United States.


Gold price is retreating from near eight-month highs of $1,902 reached following the release of the US CPI data on Thursday. Gold bulls take a breather this Friday, as the US Dollar is attempting a minor recovery in tandem with the US Treasury bond yields.

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