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03.03.2023 Market Report


EUR/USD has scaled back above 1.0600 in early Europe this Friday. The pair is helped by a broad-based US Dollar weakness amid retreating US Treasury bond yields and an upbeat mood. The Euro finds demand from hawkish ECB commentary. US ISM PMI data eyed. 


GBP/USD is extending the rebound toward 1.2000 in the early European morning. A better risk profile combined with a broadly weaker US Dollar is aiding the renewed upside in the pair. UK Final Services PMI and US ISM Services PMI are next of note. 


USD/JPY is juggling in a limited range around 136.60 in the Asian session. The asset has rebounded from 136.50 and is aiming to recapture the immediate resistance of 137.00 as the Tokyo Inflation has softened dramatically for the first time after a nine-month period escalation. Lower food and energy prices have trimmed the headline Consumer Price Index (CPI) while the core inflation that strips off the impact of food and oil steadily improved.


AUD/USD appears well-set to snap a two-week downtrend as it seesaws around the intraday top of 0.6752 during early Friday in Europe. In doing so, the Aussie pair cheers the US Dollar’s pullback amid risk-positive headlines about China. However, the cautious mood ahead of the US ISM Services PMI and mixed Aussie data, not to forget chatters of the Reserve Bank of Australia’s (RBA) policy pivot, seems to probe the bullish bias.


The NZD/USD pair comes under some renewed selling pressure on Thursday and stalls this week’s goodish rebound from the 0.6130 area, or its lowest level since November 23. The pair maintains its offered tone around the 0.6220-0.6215 region heading into the North American session and for now, seems to have snapped a three-day winning streak to a nearly two-week top set on Wednesday. The US Dollar makes a solid comeback and reverses a major part of the previous day’s sharp retracement slide from a multi-week high, which, in turn, is seen as a key factor weighing on the NZD/USD pair. The prospects for further policy tightening by the Federal Reserve remain supportive of the ongoing move up in the US Treasury bond yields. This, along with looming recession risks, provides an additional boost to the safe-haven Greenback.


The USD/CAD pair attracts some sellers near the 1.3600 round-figure mark on Friday and maintains its offered tone through the early European session. The pair is currently placed around the 1.3575 region, down just over 0.10% for the day, though any meaningful downside still seems elusive.


USD/CHF remains sidelined around 0.9420 during early Friday, after retreating from the Year-To-Date (YTD) high before a few hours. That said, the Swiss currency pair rose to the three-month high the previous day amid broad-based US Dollar run-up but mixed comments from the Fed officials joined unimpressive US data to challenge the bulls afterward. Also challenging the quote could be the cautious mood ahead of the key US ISM Services PMI for February.


Oil prices fell slightly on Friday as traders weighed the prospect of more economic headwinds from rising interest rates, although renewed optimism over a rebound in Chinese demand put prices on course for strong weekly gains.


Gold price is making headway for another run higher on Friday, having stalled its recovery mode a day before. Gold price is set for the first weekly gain in five weeks, as the United States Dollar (USD) has paused its uptrend ahead of the high-impact United States Services PMI data.

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