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19.05.2023 Market Report


EUR/USD is holding steady above 1.0750, fading the rebound toward 1.0800, as bears could be throwing in the towel. The US Dollar is struggling to extend its ongoing bullish moment, despite a cautious market environment. All eyes remain on ECB-speak and Fed’s Powell. 


The GBP/USD pair has displayed exhaustion in the downside momentum after slipping below the 1.2400 mark. The Cable is making efforts for a recovery, however, the solid US Dollar’s appeal is in traction.


The USD/JPY pair has rebounded firmly to near 138.68 as the Statistics Bureau of Japan has reported higher-than-anticipated inflation numbers (April). National headline Consumer Price Index (CPI) jumped to 3.5% from the prior release of 3.2% while the street was anticipating a deceleration to 2.5%. Core CPI that excludes food and energy prices accelerated to 4.1% vs. the consensus of 3.4% and the former release of 3.8%.


AUD/USD grinds near intraday high as it clings to mild gains surrounding 0.6630 during Friday’s Asian session, after refreshing the lowest levels in three weeks the previous day. The Aussie pair’s previous fall could be linked to the broad US Dollar run-up amid hawkish Fed bets and expectations of no US default. However, the latest challenges for the US debt ceiling deal and mixed concerns about the US-China ties seem to prod the greenback buyers and allow the pair to consolidate the weekly losses amid a sluggish session. It’s worth noting that the previous day’s disappointing Australian jobs report also exert downside pressure on the AUD/USD price.


The NZD/USD pair has sensed selling pressure above 0.6240 in the Tokyo session. The Kiwi asset has attracted significant offers as the US Dollar Index (DXY) has rebounded firmly ahead of the speech from Federal Reserve (Fed) chair Jerome Powell.


USD/CAD flirts with the 1.3500 round figure as bulls and bears jostle with the recent easing in the US Dollar versus the WTI crude oil’s rebound amid early Friday morning in Europe. In doing so, the Loonie pair justifies the market’s cautious mood ahead of the key events.


The USD/CHF pair is showing a balanced auction profile around 0.9050 in the Asian session. The Swiss Franc asset has faced pressure in its upside journey around 0.9060 as the US Dollar Index (DXY) has shown some correction after meeting tough barricades above 103.60.


Oil prices rose in Asian trade on Friday, and were on course to settle higher after a volatile week as optimism over raising the U.S. debt ceiling largely offset fears of bloated supply and worsening economic conditions.


Gold price is nursing losses at six-week troughs near $1,950 early Friday, as the United States Dollar (USD) upsurge takes a breather, awaiting fresh updates on the US debt ceiling issue and US Federal Reserve (Fed) Chair Jerome Powell’s speech due later in the day.

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