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15.02.2023 Market Report


EUR/USD is holding lower ground, closing in on 1.0700 in Wednesday’s early European hours. The pair’s weakness could be linked to the US Dollar’s broad gains, backed by the risk-off mood despite the sluggish Treasury yields. Eyes on US Retail Sales and Lagarde’s speech. 


GBP/USD is treading water around 1.2150 in early Europe. The pair is weighed down by the resurgent US Dollar demand amid risk aversion. All eyes turn toward the UK CPI data, which is seen easing to 10.3% YoY in January. 


USD/JPY bulls take a breather during early Wednesday morning in Europe, after a two-day uptrend, as it eases to 133.00 by the press time. Even so, the Yen pair remains around a six-week high, marked the previous day.


AUD/USD holds lower ground near 0.6980 after Reserve Bank of Australia (RBA) Governor Philip Lowe’s Testimony during the mid-Asian session on Wednesday. In doing so, the Aussie pair appears to give more weight to the hawkish Fed signals and the market’s offbeat mood ahead of the key data/events from the US and Australia.


NZD/USD is flat into the Tokyo open after an up-and-down day surrounding the US consumer Price index. The Kiwi is trading at 0.6330 and has stuck to a 10-pip range so far following Tuesday’s 0.6389 and 0.6296. The annual inflation rate in the US, as measured by the Consumer Price Index,  cooled only a touch to 6.4% in January from 6.5% in December, less than market forecasts of 6.2%, suggesting that getting inflation under control will take more time than expected. The US Dollar index traded around 103.00 on Tuesday but posied higher due to the hotter-than-expected US inflation dashing hopes that the Federal Reserve will soon end its tightening campaign.


The USD/CAD pair catches fresh bids on Wednesday following the previous day’s post-US CPI volatility and sticks to its intraday gains heading into the European session. The pair trades around the 1.3365 region, up nearly 0.25% for the day, and is supported by a combination of factors.


USD/CHF stands on a firmer footing near 0.9225 while refreshing intraday high during early Wednesday. In doing so, the Swiss Franc (CHF) pair stretches the previous day’s rebound from the lowest level in a week with a one-week-old bullish triangle formation.


Oil prices moved in a flat-to-low range on Wednesday as mixed U.S. inflation data brewed more uncertainty over monetary policy headwinds this year, while signs of another massive build in crude inventories also weighed on prices. 


Having witnessed good two-way businesses following the all-important United States Consumer Price Index (CPI) data on Tuesday, Gold price is resuming its downtrend below $1,850 in Wednesday’s trading so far. 

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