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04.05.2023 Market Report


EUR/USD has shifted its auction comfortably above the 1.0800 mark in the early European session. The major currency pair is expected to extend its upside journey towards 1.1100.


GBP/USD bulls take a breather around 1.2580, after rising to the highest levels since June 2021 early Thursday. That said, the Cable pair initially cheered the US Federal Reserve’s (Fed) dovish hike. The Cable is aiming higher as the Federal Reserve (Fed) is following the language of other central banks. Fed chair Jerome Powell has confirmed that further monetary policy decisions will be data-dependent, which indicates that the central bank has reached an intermediate terminal rate for now.


The USD/JPY pair has gauged an intermediate cushion after a perpendicular sell-off to near 134.40 in the Asian session. The asset witnessed massive selling pressure after neutral interest rate guidance came from the Federal Reserve (Fed) post a widely anticipated 25 basis point (bp) rate hike.


AUD/USD picks up bids to prod intraday high surrounding 0.6695 heading into Thursday’s European session as bulls cheer strong Australia’s trade numbers and the Federal Reserve’s (Fed) dovish rate hike. In doing so, the Aussie pair ignores downbeat China data, fears surrounding the US banking sector fallout and debt ceiling expiry.


The NZD/USD pair has refreshed its day’s high at 0.6225 in the Asian session. The upside bias for the Kiwi asset is solid amid consideration of a neutral policy stance by the Federal Reserve (Fed) from its June monetary policy.


The USD/CAD pair has slipped below the 1.3600 mark after failing to sustain above the 1.3620 mark in the Asian session. The Loonie asset has sensed pressure amid strength in the Canadian Dollar as oil prices have strongly rebounded after refreshing the annual low of $63.60.


The USD/CHF pair witnessed massive offers from investors on Wednesday as the Federal Reserve (Fed) delivered neutral guidance after hiking interest rates by 25 basis points (bps) to 5.00-5.25%. The Swiss Franc asset has refreshed its two-year low at 0.8820 and is expected to display more downside as the US Dollar Index (DXY) is failing to show evidence of getting confident support.


Oil prices rose in early Asian trade on Thursday, vying to snap a three-day losing spree amid potential supply disruptions in Iran and Russia, although fears of weakening economic growth and demand kept sentiment dim.


Gold price has retreated sharply to near $2,040.00 in the Asian session after printing all-time highs of $2,079.76. The precious metal has corrected swiftly as profit-booking kicked in after solid gains inspired by changed language on interest rate guidance from the Federal Reserve (Fed).

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