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09.02.2023 Market Report


EUR/USD has delivered a range extension above 1.0730 in the early European session after a recovery move from around 1.0710. The major currency pair has picked strength as the risk aversion theme has faded after investors digest the hawkish guidance from Federal Reserve (Fed) policymakers.


The GBP/USD pair edges higher for the third successive day on Thursday, though remains below the 1.2100 mark through the Asian session. The uptick is sponsored by subdued US Dollar demand which has been struggling to capitalize on the upbeat NFP-inspired rally to a one-month low.


The USD/JPY pair has accelerated above the critical mark of 131.80 in the Tokyo session. The asset has displayed significnat gains as investors are getting anxious ahead of the release of the contenders’ list for the successor of Bank of Japan (BoJ) Governor Haruhiko Kuroda. BoJ’s Kuroda has been maintaining an ultra-loose monetary policy for a prolonged period and the Japanese administration wants to make plans for an exit from the expansionary policy with the successor.


AUD/USD struggles push back the bearish bias during Thursday’s Asian session, despite the latest inaction around 0.6930-35, as mixed fundamentals join a light calendar. That said, the hawkish concerns surrounding the US Federal Reserve (Fed) keep the US Dollar firmer while mixed headlines about China probe Aussie traders of late.


NZD/USD grinds higher around intraday top near 0.6330 while portraying the market’s cautious optimism, as well as taking upbeat signals from the options market data, during early Thursday. While doing the same, the Kiwi pair fails to justify the hawkish Federal Reserve (Fed) rhetoric amid easing fears surrounding China.


USD/CAD remains on the front foot for the second consecutive day, extending the previous day’s rebound from the weekly low to refresh the intraday top near 1.3455 during early Thursday. In doing so, the Loonie pair justifies the divergence between the monetary policy outlook at the Bank of Canada (BoC) and the US Federal Reserve (Fed). Also fuelling the quote could be the latest weakness in the Oil price, Canada’s key exports, and the mixed sentiment.


The USD/CHF pair is facing barricades in overstepping the immediate mark of 0.9210 in the Asian session. The Swiss franc asset has gradually crossed the round-level resistance of 0.9200 but is struggling to extend gains further as the risk appetite of the market participants is improving again.


Oil prices were broadly steady on Thursday as the prospect of higher fuel demand in China as it reopens post-COVID curbs was offset by fears that U.S. crude stocks hitting their highest for months may signal weakening demand in the world’s no. 1 economy.


Gold price is continues its effort toward the $1,900 mark for the fourth straight on Thursday, as the United States Dollar (USD) struggles to extend its recovery despite hawkish Federal Reserve rate hike expectations back in play.

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