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29.05.2023 Market Report


EUR/USD is consolidating the rebound below 1.0750 in early Europe, as markets cheer that the proposal of raising the $31.4 trillion US borrowing limit has been approved for two years. However, concerns over its passage in Congress and holiday-thinned light trading could cap the upside. 


The GBP/USD pair has attempted a recovery move after trading sideways below 1.2350 in the Asian session. The strength in Cable has come due to a sheer decline in the US Dollar Index (DXY) after the approval of a raise in the US debt-ceiling.


The USD/JPY pair is looking to capture the 141.00 mark in the early Tokyo session. The asset is expected to extend its rally towards 141.00 as the street is anticipating that robust consumption expenditure by United States’ households would force the Federal Reserve (Fed) to stick to its policy-tightening spree in order to keep pressure on inflation.


The AUD/USD pair has shown a solid recovery from below 0.6530 amid a sheer sell-off in the US Dollar Index (DXY).  The Aussie asset is aiming to recapture the prior high of 0.6544 as the appeal for risk-perceived currencies has improved dramatically.


The NZD/USD pair has extended its recovery above 0.6060 in the Asian session. The Kiwi asset is expected to stretch its rebound move further as the approval for the US debt-ceiling raise has weighed heavily on the US Dollar Index (DXY).


The USD/CAD pair has witnessed a buying interest near 1.3600 in the early Tokyo session. The Loonie asset has rebounded as the White House has reached a bipartisan with Republican leaders. US President Joe Biden has announced that a deal with Republicans’ approval is ready to move to Congress in which Democrats made no compromise on the US debt-ceiling but have compromised their spending initiatives for the budget.


The USD/CHF pair has attempted a recovery move after building a base around 0.9050 in the early Toyo session. The Swiss Franc asset has been supported by solid bets for more interest rate hikes by the Federal Reserve (Fed). Rising consumption expenditure by United States households is showing that the stream could heat up inflationary pressures further.


Oil prices rose in Asian trade on Monday as U.S. lawmakers said they had reached a provisional agreement to raise the debt ceiling, with focus now turning to key Chinese data this week for cues on the world’s largest oil importer.


Gold is facing fragile barricades around $1,945.00 in the Asian session. The precious metal is expected to move higher as the US Dollar Index (DXY) has retreated after a pullback move to near 104.20. The approval of a raise in the US debt-ceiling has pushed the USD index under pressure.

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