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13.02.2023 Market Report


EUR/USD is consolidating losses below 1.0700 in the early European morning. The currency pair is feeling the pull of gravity amid a broadly firmer US Dollar and a risk-off marker profile. Investors remain unnerved amid US-Sino woes and pre-US CPI anxiety. 


GBP/USD clings to mild gains near 1.2050 heading into Monday’s London open as traders brace for this week’s key data from the UK and the US. Also exerting downside pressure on the Cable pair is the risk-off mood and the firmer US Dollar. 


USD/JPY refreshes intraday high around 132.30 during early Monday in Europe. In doing so, the Yen pair reverses the previous week’s losses amid hopes of an easy money policy to prevail for long. Adding strength to the pair’s upside bias is the US Dollar’s demand amid a risk-off mood and also due to the hawkish bias surrounding the Federal Reserve (Fed), not to forget steady yields.


Anxiety surrounding the “unidentified objects” flying over the US and Chinese airspace gave rise to the market’s cautious mood in addition to the US Federal Reserve (Fed) talks. Also weighing on the risk barometer pair could be the pre-data mood ahead of the US Consumer Price Index (CPI) for January, up for publishing on Tuesday.


The dollar edged toward a five-week high versus major peers on Monday as investors increased bets on the Federal Reserve keeping monetary policy tight for longer, while waiting for a U.S. consumer price report set for release the next day. The risk-sensitive Australian and New Zealand dollars eased with Asian equities on worries that higher U.S. rates will choke growth. 


The USD/CAD pair has rebounded firmly after building a cushion of around 1.3340 in the Tokyo session. The Loonie asset has extended its recovery firmly above 1.3370 as investors are getting anxious ahead of the release of the United States Consumer Price Index (CPI), pouring funds into the safe-haven assets due to the weak appetite of investors for risky investments.


The USD/CHF pair has corrected after facing barricades around 0.9250 in the early Asian session. The Swiss Franc asset has dropped, however, the expectations of a recovery move look favored amid the weak risk appetite of the market participants. The asset is likely to display volatility ahead of the Swiss Consumer Price Index (CPI) (Jan) on Monday. On a monthly basis, the economic data is seen to expand by 0.3% vs. a deflation of 0.2%. The annual data is seen lower at 2.7% versus 2.8% released earlier.


Oil prices fell on Monday amid anticipation of economic cues from key U.S. inflation data due this week, with markets largely looking past a cut in Russian supply as fears of a global economic slowdown and a staggered Chinese recovery persisted.


Gold price is trading with moderate losses, reverting toward five-week lows reached at $1,853 on Friday. Gold price is kicking off the week on the wrong footing, as the United States Dollar (USD) is holding the higher ground amid risk-off market sentiment.

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