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22.02.2023 Market Report


EUR/USD extends pullback from intraday high to 1.0650 during the first positive day in three amid the early Wednesday. The Euro pair’s initial gains could be linked to the US Dollar’s retreat amid a cautious mood ahead of the Federal Open Market Committee’s (FOMC) Monetary Policy Meeting Minutes. 


The GBP/USD pair is building the auction platform above the 1.2100 mark in the Asian session. The Cable is getting some strength as the risk appetite of the market participants is improving gradually.


USD/JPY bulls take a breather after a three-day winning streak, making rounds to 135.00 as Tokyo opens on Wednesday. In doing so, the Yen pair tracks the grinding of the US Treasury bond yields around multi-day top ahead of the key Federal Open Market Committee’s (FOMC) Monetary Policy Meeting Minutes. It should be noted that the recently softer Japan data and upbeat US statistics underpin the hawkish Fed bets to keep buyers hopeful.


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.


NZD/USD has turned sideways around 0.6230 in the early European session after wild movements showed post-hawkish monetary policy by the Reserve Bank of New Zealand (RBNZ). Volatility in the Kiwi asset has squeezed dramatically as investors have shifted their focus towards the release of the Federal Open Market Committee (FOMC) minutes, which are scheduled in the late New York session.


The USD/CAD pair demonstrates an inventory adjustment process around the immediate mark of 1.3550 in the Asian session. The Loonie asset is expected to overstep the abovementioned mark amid rising bets for more rates by the Federal Reserve (Fed) and declining oil prices.


The USD/CHF pair is gathering strength to deliver a break above 0.9280 in the early Asian session. The Swiss franc asset is struggling to deliver more gains despite the risk aversion theme underpinned by the market participants. An upbeat preliminary United States S&P PMI (Feb) data cleared that the economic activities are getting expansionary again, which could be the result of a rebound in consumer spending. This led to a sheer fall in the risk-perceived assets as expansionary economic activities support a hawkish view from the Federal Reserve (Fed).


Oil prices crept higher on Wednesday after sharp losses in the prior session as markets awaited more cues on U.S. interest rates and the path of monetary policy, while traders also questioned the outlook for a potential demand rebound this year.


Gold price is attempting a temporary recovery above the $1,830 mark early Wednesday after the dismal performance seen so far this week. Upbeat United States Manufacturing and Services PMIs reaffirm the hawkish US Federal Reserve rate hike expectations, as all eyes turn toward the Minutes of the first Federal Reserve meeting of 2023.

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