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13.04.2023 Market Report


EUR/USD is facing resistance in extending its rally above 1.1000 in early Europe. The pair is struggling as the US Dollar has paused its sell-off, awaiting the US PPI data for further downside. Eurozone Industrial Output coming up next. 


GBP/USD is gathering strength for recapturing the 1.2500 mark, awaiting the UK GDP and industrial data. Cable extended its rebound after softer US CPI data revived Fed rate cuts bets and smashed the US Dollar. US PPI data eyed as well. 


USD/JPY remains sidelined around 133.20 during sluggish trading hours of early Thursday morning in Europe. In doing so, the Yen pair traces a mild recovery in the US Treasury bond yields while also cheering new Bank of Japan (BoJ) Governor Kazuo Ueda’s defense of the ultra-easy monetary policy.


AUD/USD remains firmer for the third consecutive day even as China trade numbers fail to portray impressive outcomes for March, as well as amid softer Australia Consumer Inflation Expectations for April. The reason for the Aussie pair’s run-up could be linked to the early-day release of Australian employment data. That said, the risk barometer pair prints mild gains around 0.6710 by the press time.


The NZD/USD pair is displaying back-and-forth moves in a narrow range of 0.6210-0.6220 in the Asian session. The Kiwi asset has turned sideways as the US Dollar Index has shown some recovery after an intense sell-off. Also, upbeat China’s international trade data (March) has failed to infuse blood into the New Zealand Dollar.


The USD/CAD pair is struggling to sustain its auction around 1.3440 in the early Tokyo session. Downside bets for the Loonie asset are escalating as softened US Inflation and dovish Federal Reserve (Fed) policymakers are weighing heavily on the US Dollar. Also, higher oil prices amid weakness in the US Dollar are supporting the Canadian Dollar.


The USD/CHF pair is juggling around its fresh annual low at 0.8943 in the Asian session. The Swiss Franc asset witnessed an intense sell-off on Wednesday after the United States inflation softened more than estimates. On Wednesday, US headline Consumer Price Index (CPI) was reported at 5.0% while the street was estimating it at 5.2%. Headline CPI has decelerated to 5% from its peak of 9.1% and for that, the Federal Reserve (Fed) has gone through rigorous rate hikes. However, the core inflation that doesn’t include oil and gas prices rebounded to 5.6%, which indicates that Fed chair Jerome Powell has a lot to do to bring down inflationary pressures to 2%.


Oil prices crept lower in early Asian trade on Thursday, as markets gauged the prospect of a U.S. recession against more signs of easing inflation and growing bets that the Federal Reserve will pause its rate hike cycle.


Gold price has displayed exhaustion in the upside momentum after hitting the crucial mark of $2,020.00 in the Tokyo session. The upside bias for the precious metal is still solid as the impact of deceleration in the United States inflation would stay for longer. 

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