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27.03.2023 Market Report


The EUR/USD pair is displaying a back-and-forth action below 1.0800 in the Tokyo session. The major currency pair has turned sideways following the footprints of the subdued US Dollar Index (DXY), which is struggling to extend upside despite upbeat preliminary S&P Global PMI and expansion of financial support for mid-size United States banks.


The GBP/USD pair has surrendered its morning gains and has slipped to near 1.2230 in the Asian session. The Cable witnessed the heat after failing to climb above the 1.2250 mark as the US Dollar Index (DXY) has shown some recovery after a gradual correction.


USD/JPY is dropping back toward 130.50, having failed to sustain above 131.00 on Monday. The pair is tracking the renewed weakness in the US Dollar amid sluggish Treasury yields and cautious optimism. Focus on the global banking sector and Fedspeak. 


AUD/USD buyers extend control above 0.6650 during Monday’s sluggish trading session. The Aussie pair is attempting a rebound after posting the weekly loss, as the US Dollar losses its recovery momentum amid cautious optimism and firmer US equity futures. 


NZD/USD portrays the market’s inaction by making rounds to 0.6200 during early Monday, following a downbeat weekly closing. In doing so, the Kiwi pair fails to justify the Reserve Bank of New Zealand’s (RBNZ) cautious optimism, as well as mildly positive sentiment, amid a light calendar, mixed news and anxiety ahead of the top-tier data from the US and China.


The USD/CAD pair has printed a fresh day low at 1.3725 in the Asian session. The downside move in the Loonie asset is backed by a subdued performance from the US Dollar Index (DXY) and rising hopes for a resumption of a policy-tightening spell by the Bank of Canada (BoC) after the release of robust Canadian Retail Sales data.


USD/CHF pares intraday losses around 0.9185 but stays pressured amid downbeat options market signals and sluggish markets heading into Monday’s European session. In doing so, the Swiss currency pair (CHF) portrays the traders’ anxiety ahead of the key Swiss National Bank’s (SNB) quarterly Bulletin, as well as the Fed’s preferred inflation gauge, namely the Core Personal Consumption Expenditure (PCE) Price Index.


Oil prices kept to a tight range in Asian trade on Monday, hovering just above a 15-month low as markets waited for the next shoe to drop in a potential banking crisis. Concerns over increased geopolitical tensions also kept investors wary of crude, after Russian President Vladimir Putin said he will station tactical nuclear weapons in Belarus, escalating tensions with NATO over Ukraine. The bloc criticized Russia’s move. 


Gold price kicked off the week in the red early Monday, as bears look to extend control after a dramatic win last week. Despite looming global banking sector woes and the dovish US Federal Reserve (Fed) expectations, Gold price incurred losses in the previous week, as the United States Dollar (USD) staged a solid recovery in the second half of the week.

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