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22.05.2023 Market Report


EUR/USD is consolidating recovery gains above 1.0800 heading toward the European open. The pair has shown resilience around 1.0800, as the US Dollar remains undermined by falling US Treasury bond yields amid protracted US debt-ceiling talks and dovish Fed outlook. 


GBP/USD is oscillating above 1.2450 after a recovery move and is looking to extend its rally further as the Federal Reserve (Fed) is considering a pause in the policy-tightening spell amid tight credit conditions by the United States regional banks. 


The USD/JPY pair has dropped back to near the crucial mark of 137.50 in the Asian session. The asset is expected to deliver more losses below the aforementioned mark as a delay in the US debt-ceiling raise is creating chaos in global markets.


AUD/USD prods intraday low surrounding 0.6645 as it reverses the early Asian session strength amid mixed macros and a cautious mood ahead of this week’s key data/events. It’s worth noting, however, that the Aussie pair bounced off the lowest levels in a one-month the previous day but has been struggling to defend the bulls of late.


NZD/USD remains on the front foot around 0.6275 as it extends the previous weekly gains despite mixed concerns about the Reserve Bank of New Zealand (RBNZ) on early Monday. In doing so, the Kiwi pair cheers the US Dollar’s retreat amid the absence of a major US debt ceiling announcement, as well as the Federal Reserve (Fed) officials’ mixed comments.


USD/CAD picks up bids to pare intraday losses amid Canada bank holiday. WTI remains pressured amid fears of less energy demand, higher supplies. Mixed concerns about US debt ceiling negotiations, Fed keeps Loonie traders on their toes.


The USD/CHF pair is struggling in holding its auction above the immediate mark of 0.8980 in the early Asian session. The Swiss Franc asset has retreated after a pullback move to near 0.9000.


Oil prices retreated in early Asian trade on Monday, extending losses into a third session as markets awaited more progress in negotiations over the U.S. debt ceiling, while focus also remained on potential supply disruptions in North America.


Gold price licks its wounds after a two-week downtrend as markets brace for the top-tier data/events. The precious metal’s latest corrective bounce could be linked to mixed concerns about US debt ceiling expiration as US President Joe Biden appears hopeful of avoiding the default.

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