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23.02.2023 Market Report


EUR/USD is holding a rebound above 1.0600 in the early European morning. Investors remain on the edge amid hawkish Fed and ECB rate hike expectations, awaiting a fresh batch of the Eurozone and US economic data for a fresh trading direction. 


GBP/USD is advancing above 1.2050 in early Europe. A broad-based US Dollar pullback amid a mixed market sentiment is lending support to the pair. Brexit-related news and US data are in focus after Brexit deal talks stalled on Wednesday. 


USD/JPY retreats to 134.80 as bears appear determined to retake control, after a four-day absence, during early Thursday. Even so, Japan’s holiday and hawkish Fed concerns join geopolitical fears to challenge the downside momentum. As a result, the yen pair prints mild losses during the first downbeat day in five.


The AUD/USD pair has stretched its recovery to near 0.6840 in the Asian session. The Aussie asset has picked strength as investors have shrugged-off volatility inspired by the release of the hawkish Federal Open Market Committee (FOMC) minutes released in the late New York session.


The NZD/USD pair has sensed demand after dropping to near 0.6210 in the early Asian session. The Kiwi asset has rebounded as the Reserve Bank of New Zealand (RBNZ) is citing a string of bumper rate hikes to fade fresh fears of further acceleration in the inflationary pressures.


USD/CAD takes offers to refresh the intraday low near 1.3540 as it reverses from a seven-week high marked the previous day during early Thursday. In doing so, the Loonie pair prints the first daily loss in three amid the market’s consolidation, as well as cautious optimism in the market. That said, the absence of Japanese traders, due to the holiday in Tokyo, joins the previous retreat in the US Treasury bond yields and a pullback in the US inflation expectations to weigh on the latest USD/CAD price. That said, the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve (FRED) signal a pullback in the US inflation expectations by retreating from the multi-day top.


USD/CHF renews its intraday low near 0.9305 as it pares the recent gains around the weekly top during Thursday’s sluggish session. The Swiss currency pair’s latest pullback could be linked to the market’s adjustments of the latest moves amid the Japan holidays and a pullback in the US Treasury bond yields.


Oil prices rose on Thursday as reports suggested that Russia’s supply cuts will be bigger than previously announced, although fears of rising interest rates saw markets nursing steep losses for the week.


Gold price is coming up for some air on Thursday after witnessing three straight days of dismal performances. Gold price witnessed a good up and down session on Wednesday, courtesy of the brewing geopolitical tensions and the hawkish US Federal Reserve (Fed) Minutes of the February meeting.

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