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08.03.2023 Market Report


EUR/USD consolidates near two-month lows below 1.0550, extending the previous downside in early Europe. The pair remains weighed down by Fed Chair Powell’s hawkish rhetoric-led broad-based US Dollar strength. German data eyed ahead of US jobs report. 


GBP/USD is holding steady below 1.1850, licking its wounds near 2023 lows in the early European morning. Hawkish Fed Chair Powell’s comments-led risk aversion is limiting the upside in the pair amidst broadly stronger US Dollar and Treasury yields. US data awaited. 


The USD/JPY pair has scaled to near 137.40 in the early Asian session after an unusual upside move inspired by hawkish commentary from Federal Reserve (Fed) chair Jerome Powell in his testimony before Congress. Fed’s Powell has endorsed more rates citing inflation as extremely sticky considering the incoming data from the United States economy.


The AUD/USD pair is demonstrating volatility contraction after a perpendicular downside move inspired by extremely hawkish remarks from Federal Reserve (Fed) chair Jerome Powell. The Aussie asset is displaying back-and-forth action below 0.6600 and is expected to display more weakness amid less-hawkish commentary from Reserve Bank of Australia (RBA) Governor Philip Lowe despite a one-time slash in Australian inflation.


NZD/USD stays defensive around the 0.6100 round figure during early Wednesday, following a slump to the lowest levels in more than three months. In doing so, the Kiwi pair portrays the market’s habit of reassessing the previous catalysts amid a light calendar, as well as ahead of the key data/events.


USD/CAD has printed a fresh four-month high at 1.3774 in the Asian session. The Loonie asset witnessed a stellar buying interest after extremely hawkish remarks by Federal Reserve (Fed) chair Jerome Powell on Tuesday. The major has continued its upside journey as the impact of Federal Reserve Powell’s hawkish remarks has not been fully discounted yet.


The USD/CHF pair has shifted its auction above the round-level resistance of 0.9400 after a whooping upside momentum post extremely hawkish remarks from Federal Reserve (Fed) chair Jerome Powell. The Swiss franc asset is expected to resume its upside journey towards the critical resistance of 0.9435 as investors have underpinned the risk aversion theme amid solid chances of more rates from the Fed that previously anticipated.


Oil prices recovered a measure of recent losses on Wednesday on the prospect of tightening U.S. supplies, although fears of rising interest rates, following hawkish signals from the Federal Reserve, still weighed on sentiment.


Gold price seesaws around a one-week low near $1,810 amid broad US Dollar strength. Fed Chair Powell’s influence on the US Treasury bond yield curve acts as the key negative for XAU/USD price. Mixed China-linked headlines restrict Gold price decline ahead of US ADP data.

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