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24.01.2023 Market Report


EUR/USD is holding onto the latest gains below 1.0900 in the early European morning. The pair is capitalizing on broad US Dollar weakness amid a better mood and sluggish Treasury yields. Hawkish ECB-speak underpins the Euro ahead of EU PMis. 


GBP/USD keeps its range below 1.2400, as bulls take a breather ahead of the key UK activity data. The renewed Brexit concerns and UK political jitters remain a drag on the Pound Sterling. The renewed US Dollar weakness keeps the downside cushioned in Cable. 


USD/JPY slides towards 130.00 during the initial hour of Tokyo opening on Tuesday. In doing so, the Yen pair justifies slightly positive activity data from Japan, as well as optimism surrounding the Covid conditions in the Asian major, not to forget the recent weakness in the US Treasury bond yields.


AUD/USD has sensed selling interest while attempting to surpass the 0.7040 mark in the Asian session. The Aussie asset is witnessing heat after the release of the downbeat preliminary Australian S&P PMI (Jan) data in early Tokyo. Also, a recovery in the US Dollar Index (DXY) has triggered volatility in the Aussie asset.


The NZD/USD pair is aiming to extend its upside journey above the 0.6500 mark in the early Asian session. The kiwi asset is eyeing a recovery extension amid a cheerful market mood. Soaring expectations of a further slowdown in the pace of policy tightening by the Federal Reserve (Fed) is infusing strength into the risk-sensitive assets.


USD/CAD slides to 1.3350 as bears keep the reins for the fourth consecutive day heading into Tuesday’s European session. In doing so, the Loonie pair cheers the broad US Dollar weakness, as well as a slow grind to the north in prices of Canada’s key export item, namely WTI crude oil, ahead of monthly activity data from the US. It’s worth noting that Wednesday’s Bank of Canada (BoC) monetary policy decision will be eyed closely by the pair traders amid talks surrounding a policy pivot.


The USD/CHF pair edges lower on Tuesday and for now, seems to have stalled the recent recovery from sub-0.9100 levels, or its lowest level since November 2021 touched last week. The pair remains on the defensive through the early European session and is currently placed near the daily low, around the 0.9200 round-figure mark.


It’s China holiday week and for oil, that means the rest of the world trading blind-folded with the optimism that when the veil is lowered, crude prices will remain higher.


Gold price is consolidating the latest uptick to near nine-month highs, as bulls take a pause contemplating the next move. Gold price is holding firmer so far this Tuesday, having witnessed good two-way trades a day before.  

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