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06.02.2023 Market Report


EUR/USD is holding steady just shy of the 1.0800 mark in the early European morning. The US Dollar is consolidating the upside amid a cautious market tone, as investors assess Friday’s US NFP blowout and hawkish Fed expectations. Eurozone data coming up next. 


The GBP/USD pair has attempted to extend its rebound move above the 1.2050 mark in the Tokyo session. The Cable gauged an intermediate cushion around 1.2000 amid subdued performance by the US Dollar Index (DXY).


USD/JPY is correcting the opening gap rally that hit a high of 132.47 and is now back to 131.70 at the time of writing. Outstanding results in the US jobs market are still being digested by investors and we could be in for some volatility ahead as the week unfolds. 


AUD/USD has attempted a firmer recovery after dropping to near the 0.6900 mark in the early European session. The Aussie asset has scaled to near 0.6950 despite escalating tensions between the United States and China after the balloon event. A sudden attack ordered by US President Joe Bidden on a Chinese spy balloon, which has been recognized as civilian by the Chinese authorities has resulted in discomfort between the two nations.


NZD/USD remains depressed as it flirts with 0.6300 during early Monday in Asia, following a downside gap to begin the week’s trading. In doing so, the Kiwi pair justifies the market’s risk-off mood and firmer US data amid a holiday in New Zealand (NZ) markets. Market sentiment worsens amid strong US data renewing hawkish bias for the Federal Reserve (Fed), as well as due to the geopolitical tension surrounding China.


USD/CAD prints mild gains around 1.3415 as bulls keep the reins at the start of the key week for Loonie traders. In doing so, the quote prints three-day uptrend while justifying firmer US Dollar and the downbeat prices of Oil, Canada’s main export item.


USD/CHF prints mild losses around 0.9250 as bulls retreat from a one-week high heading into Monday’s European session. In doing so, the Swiss currency (CHF) pair prints the first daily loss in three as market sentiment dwindles.


Oil prices rose slightly on Monday tracking optimistic comments on a recovery in Chinese demand from the International Energy Agency, although markets were still nursing steep weekly losses on fears of tighter U.S. monetary policy. 


Gold price is making a tepid recovery attempt toward the $1,900 level at the start of the week on Monday. Gold buyers a breathing a sigh of relief after two back-to-back days of extreme sell-off.

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