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17.03.2023 Market Report


EUR/USD has extended its recovery toward 1.0650, as the US Dollar Index is losing further steam on Friday. Dovish Fed expectations and US First Republic Bank’s relief plan revive risk appetite and weigh on the safe-haven US Dollar. Eurozone/ US data next on tap. 


GBP/USD clings to mild gains around 1.2150 heading into Friday’s London open. The Cable pair remains firmer for the second consecutive day amid downbeat US Dollar, as well as due to the price-positive catalysts.


USD/JPY price is heading down, looking to test the 130.00 mark on the back of softer US Treasury (UST) yields. Although the soft footing of the US Dollar across the board is not indicating anything significant yet, USD/JPY bounced on Thursday due to stabilization in UST yields. The risk aversion environment earlier in the week, led by a liquidity crunch among banks, prompted UST to fall.


The AUD/USD pair has witnessed sheer buying interest from the market participants and has reached near its weekly high plotted near 0.6720. The Aussie asset has attracted significant bids as investors have lightened their longs in the US Dollar Index (DXY) significantly. The reason behind ignoring the USD Index despite fears of global banking turmoil is the accelerating expectations of a less-hawkish stance on interest rates by the Federal Reserve (Fed) ahead.


NZD/USD cheers the optimism in Asian hours led by the soft-footed US Dollar and positive risk appetite. The risk proxy NZD/USD is reflecting a relief rally led by quick intervention in the banking crisis. The pair is trading up around 0.68% at the time of writing. Most of the Asian equity complexes are trading in the green along with steady US Treasury yields.


The USD/CAD pair is displaying a back-and-forth action around 1.3720 in the early Asian session. The Loonie asset has turned sideways after a downside move and is expected to continue further towards 1.3700. The downside bias for the major has built as investors are worried about global banking turmoil, which is stretching day after day.


USD/CHF remains sidelined around 0.9300, after a downbeat daily performance, as traders look set to snap a two-week losing streak. In doing so, the Swiss currency pair traces the upbeat options market signals while suggesting further advances of the quote.


Oil prices crept higher on Friday on the prospect of supportive measures by the OPEC+, although fears of an economic slowdown stemming from a banking crisis kept gains limited and put prices on course for their worst week this year. 


Gold price is seeing a renewed uptick early Friday, although remains in a familiar range between $1,900 and $1,937. The latest leg higher in Gold price could be linked to a fresh round of United States Dollar (USD) selling amid improved risk sentiment and ahead of key US data.

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