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16.03.2023 Market Report


EUR/USD is trading close to 1.0600, holding its recovery gains early Europe this Thursday. The pair is looking to find its feet amid a minor positive shift in the risk sentiment after Credit Suisse’s liquidity improvement plan. Eyes on ECB rate hike decision for fresh trading direction. 


GBP/USD is in a consolidative phase in early Asian trading hours on Thursday amid reports suggesting that the Bank of England (BoE) is in emergency talks as the Credit Suisse crisis worsens following the Swiss National Bank’s (SNB) intervention.


The USD/JPY pair struggles to capitalize on the overnight late rebound from the 132.20 area, or a one-month low and attracts some sellers for the second successive day on Thursday. The pair, however, manages to rebound a few pips from the daily low and trades around the 133.00 mark during the early European session, still down nearly 0.40% for the day.


AUD/USD has printed a fresh intraday high at 0.6645 in the early European session amid upbeat Australian labor market data and extended correction from the US Dollar Index (DXY). The Aussie asset has stretched its recovery from below the round-level support of 0.6600 as investors are paring positions from the USD Index, backed by fears of the global banking crisis.


NZD/USD remains depressed near 0.6160, down for the second consecutive day, despite paring intraday losses heading into Thursday’s European session of late. The Kiwi pair bears the burden of the downbeat prints of New Zealand’s (NZ) fourth quarter (Q4) Gross Domestic Product (GDP), as well as the market’s fears emanating from the latest bank fallouts in the US and Europe. It’s worth observing that the headlines suggesting improvements in economic conditions of China, one of New Zealand’s key customers, seem to join sluggish yields to probe the bears in the last few hours


The USD/CAD pair has corrected to near the critical support of 1.3750 in the Tokyo session. The Loonie asset is facing the heat as the upside momentum in the US Dollar Index has started fading now. The street is anticipating maintenance of status-quo by the Federal Reserve (Fed) next week as United States inflation has resumed its softening spell meaningfully.


The USD/CHF pair attracts some sellers near the 0.9340 area on Thursday and erodes a part of the previous day’s massive rally of over 220 pips – the biggest single-day rise since 2015. The pair continues drifting lower through the early European session and slides back below the 0.9300 mark, hitting a fresh daily low in the last hour.


Oil prices crept higher from 2021 lows on Thursday as an upbeat outlook on a Chinese economic recovery helped spur some hopes of a demand rebound this year, although markets remained on edge over a potential banking crisis.


Gold price (XAU/USD) fades upside momentum despite recently bouncing off intraday low to $1,908 during early Thursday. In doing so, the precious metal justifies the previous day’s failure to cross the $1,923 key hurdle while also taking clues from the market’s indecision amid looming fears of financial market distress.

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