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06.04.2023 Market Report


EUR/USD is trading on the back foot below 1.0900 early Thursday, having dropped on Wednesday following a short series of daily bullish closes. Risk-aversion is underpinning the US Dollar recovery, despite a run of weak US data. Focus shifts to Friday’s NFP. 


GBP/USD drifts lower for the second successive day on Thursday amid a modest USD strength. Looming recession fears weigh on investors’ sentiment and benefit the safe-haven Greenback. Bets for an imminent Fed rate-hike pause could cap the USD and help limit losses for the major.


USD/JPY consolidates intraday losses around 131.20 as the US Dollar defends the previous day’s rebound from a two-month low heading into Thursday’s European session. Even so, the Yen pair remains on the way to reversing the last week’s gains, the first in five, amid downbeat Treasury bond yields.


AUD/USD licks its wounds near the intraday low after China data allowed bears to take a breather during early Thursday. Even so, downbeat Australian trade numbers and risk-off mood weighs on the Aussie pair of late. That said, China’s Caixin Services PMI rallied to 57.8 versus 54.0 expected 55.0 prior. In doing so, the China data rallies to the highest level since November 2020.


NZD/USD flirts with the 0.6300 round figure during its first loss-making day in four amid early Thursday. While the broad risk aversion underpins the US Dollar’s corrective bounce and weigh on the Kiwi pair, the hawkish bias surrounding the Reserve Bank of New Zealand (RBNZ) joins strong China activity data to prod the bears.


USD/CAD picks up bids to renew its intraday high near 1.3485 as it pares weekly losses with a three-day uptrend during early Thursday. In doing so, the Loonie pair prepares for the all-important Canada employment data for March amid the US Dollar recovery and downbeat prices of Ontario’s key export, namely WTI crude oil.


USD/CHF retreats to 0.9060 during early Thursday, after a failed recovery from the 22-month low marked the previous day. In doing so, the Swiss Franc (CHF) pair cheers the US Dollar’s broad weakness ahead of important employment data.


Oil fell on Thursday as weak U.S. economic data raised concerns over a potential global recession and demand reduction, but benchmark prices were headed for a weekly advance after OPEC+ announced further output cuts and U.S. oil stocks dropped.


Gold price has dropped firmly to near $2,010.00 in the early European session. The precious metal is likely to attract more offers and may find a cushion near the $2,000.00 mark ahead.

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