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02.02.2023 Market Report


EUR/USD is holding moderate gains above 1.1000, as buyers keep the reins ahead of the ECB policy decision. The pair is sitting at the highest level in 10 months, as the US Dollar licks the dovish Fed decision-inflicted wounds. The Euro remains underpinned by hawkish ECB expectations. 


GBP/USD is trading close to 1.2400 heading into the London Open this ‘Super Thursday’. Pound Sterling bulls take a breather ahead of the expected BoE 50 bps rate hike. The US Dollar remains vulnerable following the dovish Fed verdict. 


USD/JPY pares intraday losses around 128.60 during the three-day downtrend as the market slips into consolidation mode ahead of the second round of central bank dossier amid early Thursday. The Yen pair dropped to its lowest levels in two weeks earlier in the day while extending the Federal Reserve (Fed) induced losses amid downbeat Treasury bond yields.


AUD/USD remains sidelined at the highest levels since June 2022, mildly bid near 0.7140 during early Thursday, as bulls take a breather after the biggest daily jump in a month. In doing so, the risk-barometer pair portrays the market’s inaction while keeping the Federal Reserve (Fed) inspired gains.


The NZD/USD pair is facing fragile hurdles in overstepping the seven-month high at 0.6529 in the Tokyo session. The upside bias in the Kiwi asset is intact as the Federal Reserve (Fed) has slowed down the pace of policy tightening further after sensing the fact that the disinflationary process has started in the United States.


The USD/CAD pair has continued its two-day losing spell after slipping below 1.3270 in the Asian session. The Loonie asset witnessed a massive sell-off on Wednesday after back-to-back signs of inflation softening in the United States.


USD/CHF remains depressed at the lowest levels since August 2021 as bears cheer a three-day downtrend near 0.9065 during Thursday’s Asian session. In doing so, the Swiss Franc (CHF) pair extends the US Federal Reserve-induced losses as market players await the key central bank decision and the US employment report for January.


Oil prices recovered a measure of recent losses on Thursday as weakness in the dollar benefited commodity buyers, with markets now awaiting more cues from central bank meetings in Europe and the U.K. 


Gold price is sitting at the best levels seen in the last ten months above $1,950, as bulls take a breather after two back-to-back days of solid gains. The United States Dollar (USD) is licking its wounds, despite a bounce in the US Treasury yields so far this Thursday. 

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