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27.01.2023 Market Report


EUR/USD is trading under pressure below 1.0900 in early Europe, as the US Dollar recovers weekly losses ahead of the US PCE inflation data this Friday. Investors look to reposition, with eyes on the Fed and ECB policy announcements next week. 


GBP/USD sellers flirt with 1.2400, after failing to cross the 1.2430 hurdle, as cautious mood ahead of the key US data joins mixed updates from the UK to push back the previous bullish bias surrounding the Cable pair.


USD/JPY prints mild losses around 130.00, after a failed attempt to recover, as the Bank of Japan (BoJ) marks a show of Yield Curve Control (YCC) during early Friday morning in Europe. In doing so, the Japanese central bank extends five-year loans against collateral to financial institutions, from February 01, 2023, to 2028.


AUD/USD remains dicey around 0.7120-15 as bulls try hard to defend the five-day winning streak near the highest levels since June 2022 during early Friday. The Aussie pair’s latest struggle could be linked to the mixed Aussie data and cautious mood ahead of the Federal Reserve’s (Fed) preferred inflation gauge, namely Core Personal Consumption Expenditures (PCE) – Price Index for December.


NZD/USD is currently trading at 0.6500 and is 0.3% higher at the start of Friday with the bird taking flight on a softer US Dollar ahead of key data for the US session ahead. The pair has rallied from a low of 0.6482 to a high of 0.6506  so far, reaching the highs of Wednesday with the multi-month highs in sight that were made following New Zealand’s Consumer Inflation data that held near three-decade highs in the fourth quarter.


USD/CAD takes offers to refresh the intraday low near 1.3315 while keeping the previous day’s south-run to a 2.5-month low during early Friday. In doing so, the Loonie pair cheers broad US Dollar weakness, as well as firmer prices of Canada’s main export item WTI crude oil, ahead of the key US data.


The USD/CHF pair is sensing hurdles in scaling above 0.9200 in the early Asian session. The Swiss Franc asset is attempting to build a base around 0.9200 for a subtle rebound as investors are getting anxious ahead of the release of the United States Personal Consumption Expenditure (PCE) Price Index data.


Oil prices moved little on Friday and were set to end the week flat amid caution over an upcoming OPEC+ panel meeting, as well as more cues on the U.S. economy from a reading on the Federal Reserve’s preferred inflation gauge.


Gold price is on the back foot on Friday, eyeing a flat close for the week after hitting the highest level in nine months at $1,949 on Thursday. The United States Dollar (USD) is finding its feet alongside the US Treasury bond yields, with the focus now shifting toward the US Personal Consumption Expenditures (PCE) Price Index data.

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