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10.02.2023 Market Report


EUR/USD is holding lower ground, heading toward 1.0700 in the early European morning. Risk sentiment remains in a weaker spot, allowing the US Dollar pullback to gain momentum. The focus remains on the EU economic forecasts and US sentiment data. 


GBP/USD stays under modest bearish pressure and trades at around 1.2100. The data from the UK showed on Friday that the GDP contracted by 0.5% on a monthly basis while staying stagnant in the fourth quarter, not allowing Pound Sterling to gain traction.


The USD/JPY pair is marching towards the critical mark of 132.00 in the Tokyo session. The asset is witnessing significant strength amid the risk-aversion theme and favor for expansionary monetary policy by Bank of Japan (BoJ) Governor Haruhiko Kuroda.


AUD/USD consolidates daily losses around 0.6930, bouncing off the intraday low amid early Friday morning in Europe. In doing so, the quote traders lick their wounds amid cautious sentiment ahead of the key US data, as well as amid indecision due to the mixed catalysts. That said, the quarterly prints of the Reserve Bank of Australia’s (RBA) Statement of Monetary Policy (SoMP) failed to impress the AUD/USD buyers despite posting hawkish economic forecasts and readiness for further interest rate hike. The reason could be linked to the statement saying, “The board is mindful of the rise in interest rates already made and that the policy acts with a lag.”


The NZD/USD pair has dropped sharply below 0.6320 as the China’s National Bureau of Statistics (NBS) has reported lower-than-anticipated Consumer Price Index (CPI) (Jan) data. The annual inflation data has landed at 2.1% lower than the consensus of 2.2% but higher than the prior release of 1.8%. Monthly inflation figure has shown a deflation by 0.8% against an expansion in the inflationary pressures by 0.7%.


USD/CAD teases buyers around 1.3465-70 heading into Friday’s European session, after a two-day uptrend, as the Loonie pair traders await crucial statistics from Canada and the US.  In doing so, the quote remains indecisive despite printing minor gains by the press time.


USD/CHF bulls take a breather around 0.9220, after posting the biggest daily jump in one week, as traders await the key US data amid mixed feelings. The Swiss Franc (CHF) pair rallied the previous day amid the market’s rush toward the US Dollar amid fears of recession. However, a rethink about the Federal Reserve’s (Fed) next moves join softer US data to probe the pair buyers afterward.


Oil prices moved little on Friday amid growing concerns over a U.S. economic slowdown and a staggered recovery in China, but were headed for strong weekly gains as near-term supply remained constrained due to disruptions in Turkey.


Gold price is sitting at the lowest level in five weeks near the $1,850 psychological mark on the final trading day of the week, on track to book the second weekly drop. The renewed uptick in the United States Dollar (USD) amid souring risk sentiment is exerting further downside pressure on the Gold price.

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