Pre Loader

20.01.2023 Market Report


EUR/USD grinds lower around the intraday bottom as it pares the daily, as well as weekly, gains around the highest levels since April 2022 heading into Friday’s European session.


The pair is displaying back-and-forth moves below 1.2400 in the Asian session. The Cable has turned sideways as investors are awaiting the release of the United Kingdom Retail Sales data for fresh impetus.


The USD/JPY pair attracts some buyers on the last day of the week and steadily climbs back above the 129.00 mark during the Asian session. Spot prices, however, remain confined in a familiar range held since the beginning of this week, warranting caution for bullish traders before positioning for any further intraday positive move.


The AUD/USD pair has not displayed a meaningful response despite the People’s Bank of China (PBoC) has kept the one-year and five-year Loan Prime Rates (LPR) unchanged. The street was expecting a dovish monetary policy from the PBoC as the Chinese economy needs to be injected with significant liquidity. The economy is recovering from turbulent times due to lockdown curbs to contain the Covid-19 epidemic. Also, the vulnerable real estate market could be supported by deploying stimulus boosts or easy money.


NZD/USD remains mildly bid around 0.6415 as the Kiwi bulls cheer the upbeat sentiment amid sluggish hours of early Friday’s trading. In doing so, the quote reverses the previous day’s losses while bracing for the second consecutive weekly gain.


USD/CAD pares the recent losses around 1.3465 as it picks up bids to reverse the previous day’s pullback from a fortnight high during Friday’s Asian session. In doing so, the Loonie pair ignores the firmer prices of Canada’s key export item, namely the WTI crude oil. The reason could be linked to the fresh fears surrounding the US economic growth and the hawkish Fedspeak.


The US Treasury yields have rebounded after printing a multi-month low. The Swiss franc asset oscillated in a mere 40-pips range on Thursday amid an absence of a potential trigger that could trigger a power-pack action. Also, the US Dollar Index (DXY) is displaying signs of volatility contraction.


Oil prices rose further on Friday, and were set to end the week higher as optimism over an eventual recovery in Chinese demand this year largely offset fears that a global economic slowdown will dent crude markets.


Gold price (XAU/USD) pares recent gains as bulls take a breather at the highest levels since April 2022 amid a recent pick-up in the US Dollar. Also likely to probe the Gold buyers could be the cautious mood ahead of the key data/events.

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.