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21.02.2023 Market Report


The EUR/USD pair has slipped to near 1.0660 in the Asian session as the risk appetite of the market participants has trimmed ahead of the global PMI figures. Investors are worried that higher interest rates by the majority of central banks in taming the stubborn inflation have impacted the scale of economic activities. 


GBP/USD lacks follow-through as it prints mild losses around 1.2020 heading into Tuesday’s London open, flirting with an intraday low by the press time. In doing so, the Cable pair takes clues from the technical candlestick formation, as well as fundamentals surrounding Brexit and the market sentiment.


USD/JPY grinds higher around intraday top surrounding 134.35-40 amid a three-day uptrend during early Tuesday. In doing so, the Yen pair tracks the recent pick up in the US Treasury bond yields while struggling to justify hawkish comments from Bank of Japan (BoJ) Governor Haruhiko Kuroda and the mixed Purchasing Managers Index (PMI) for February.


AUD/USD fades bounce off intraday low while printing mild losses near 0.6900 during early Tuesday. In doing so, the Aussie pair fails to cheer the hawkish Minutes Statement from the Reserve Bank of Australia (RBA) and the upbeat Australian activity data. The reason could be linked to the market’s risk-off mood and the US Dollar’s rebound during the week’s first trading day.


The NZD/USD pair has slipped below 0.6240 in the early European session. The Kiwi asset is expected to continue its downside movement as anxiety among investors is soaring ahead of the opening of the US markets after an extended weekend. S&P500 futures are showing losses as the US markets are yet to show the impact of US-China tensions. Apart from that, missile launching by North Korea on weekend near Japan’s EEC region event will also be discounted by the market participants.


USD/CAD clings to mild gains near 1.3480 as it reverses the previous day’s losses during early Tuesday in Europe. In doing so, the Loonie pair buyers cheer downbeat prices of Canada’s key export item, WTI crude oil, as well as the full market’s favor to the US Dollar, ahead of the key US and Canadian statistics.


USD/CHF remains mildly bid around 0.9240, despite recently easing from the intraday high, as the Swiss pair (CHF) traders benefit from the US Dollar rebound amid sour sentiment. It’s worth noting, however, that the cautious mood ahead of the key data/events favors the USD/CHF buyers.


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. 


Gold bears flirt with intraday low during two-day losing streak, fades Friday’s bounce off seven-week low. Sour sentiment, full markets underpin US Dollar rebound and weigh on XAU/USD amid firmer yields.

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