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30.01.2023 Market Report


EUR/USD treads water around 1.0870-60 as markets remain on a dicey floor ahead of the key central bank meetings and data. Adding strength to the market’s indecision could be the return of China and fears of a softer growth number from Germany.


The GBP/USD pair has refreshed its day’s high at 1.2405 in the early European session. The Cable has picked up strength as the US Dollar Index (DXY) has turned extremely volatile amid chatters over the interest rate decision by the Federal Reserve (Fed) and the Bank of England (BoE) this week.


USD/JPY remains on the back foot around 129.90, despite recently bouncing off the intraday low, as the traders in Tokyo begin the key week with mixed feelings. In doing so, the Yen pair challenges the previous two-week uptrend amid sluggish yields, cautious optimism in the market. That said, China’s return from the Lunar New Year (LNY) holidays brought the good news of higher festive spending and the dragon nation’s readiness to boost consumption. On the same line could be the hopes of the Federal Reserve’s (Fed) dovish hike after the last week’s mixed data.


The AUD/USD pair has accelerated to near 0.7115 after rebounding from below 0.7095 in the Asian session. The Aussie asset is scaling firmly higher despite caution in the market sentiment. S&P500 futures are showing selling pressure in the Asian session as investors are dubious about whether to ditch United States equities due to softening demand or add them amid expectations of a further slowdown in the inflation projections. The US Dollar Index (DXY) hovers around 101.50 after a downside move. It is expected to remain on the tenterhooks as investors will keep an eye on chatters ahead of the interest rate decision by the Federal Reserve (Fed).


The NZD/USD pair is failing in keeping its auction above 0.6500 in the early European session. The Kiwi asset is facing pressure as the US Dollar index (DXY) has shown a perpendicular recovery move after a sheer decline to near 101.40. The recovery move in the USD Index is quite strong and is showing signs of vertical decline in the risk appetite of the market participants.


USD/CAD picks up bids to refresh intraday high around 1.3325 during the first positive day in three heading into Monday’s European session. In doing so, the Loonie pair takes clues from the downbeat Oil prices, Canada’s main export, as well as a rebound in the US Dollar amid the market’s cautious optimism.


USD/CHF bulls take a breather around 0.9210 during Monday’s sluggish Asian session, following a two-day uptrend, as traders await this week’s bumper data/events. Also challenging the Swiss Franc (CHF) pair is the return of Chinese traders after a one-week-long Lunar New Year (LNY) holiday.


Oil prices kept to a tight range on Monday amid uncertainty over a drone attack on an Iranian facility and a Russia-led supply glut, although optimism over a demand recovery in China helped drive some gains.


Gold price kicks off the new week on a subdued note and oscillates in a narrow trading band through the Asian session. The XAU/USD, meanwhile, remains well within the striking distance of a nine-month peak touched last Thursday as investors move to the sidelines ahead of the Federal Reserve’s (Fed) rate-hike verdict later this week.

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