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07.07.2023 Market Report


EUR/USD is recovering ground to trade close to 1.0900 in the early European morning. The pair looks to extend its rebound, as the US Dollar stays on the back foot amid a pullback in the US Treasury bond yields, as investors turn cautious mood ahead of US NFP data and Lagarde’s speech. 


GBP/USD takes offers to extend pullback from the highest level in a fortnight. The three week low mark challenges Cable buyers as US employment report looms. BoE hawks reassess previous optimism amid risk-off mood and weigh on the Pound Sterling price.


USD/JPY renews its intraday low around 143.70, down for the second consecutive day, heading into Friday’s European session. In doing so, the Yen pair justifies the market’s positioning for the US employment report for June. Also exerting downside pressure on the price could be the chatters about the Japanese government’s likely intervention to defend the Yen, as well as talks of the Bank of Japan (BoJ) policy moves.


AUD/USD clings to mild gains around the intraday high of 0.6636 as it consolidates the weekly losses ahead of the key US employment report. In doing so, the Aussie pair prints the first daily gains while extending the early Asian session’s rebound heading into Friday’s European session.


The NZD/USD pair catches fresh bids during the Asian session on Friday and reverses a part of the previous day’s retracement slide from the 0.6215-0.6220 region, or a two-week high. Spot prices currently trade around the 0.6170 region, up nearly 0.20%, and for now, seem to have snapped a two-day losing streak, though any meaningful upside still seems elusive.


The USD/CAD pair enters a bullish consolidation phase and oscillates in a narrow range, just below its highest level since June 13 touched during the Asian session on Friday. Spot prices currently hovers around the 1.3360-1.3365 region, nearly unchanged for the day, as traders keenly await the release of the crucial monthly employment details from the US and Canada. The Canadian jobs data, however, is more likely to be overshadowed by the closely-watched US NFP report, which could influence the Federal Reserve’s (Fed) policy outlook and drive the US Dollar (USD) demand. In the meantime, the uncertainty over the Fed’s future rate-hike path keeps the USD bulls on the defensive. Apart from this, the recent bullish run in Crude Oil prices is seen underpinning the commodity-linked Loonie and acting as a headwind for the USD/CAD pair.


The USD/CHF pair attracts some dip-buyers during the Asian session on Friday and reverses a part of the previous day’s sharp retracement slide from the vicinity of the 0.9000 psychological mark. Spot prices currently trade around the 0.8960 region, up only 0.10% for the day, and remain confined in a familiar range held over the past three weeks or so.


Oil prices kept to a tight range on Friday as strong labor data fueled fears of rising U.S. interest rates, but were set for a second straight week of gains amid signs of tighter supplies and improving demand.


Gold price stays on the way to posting the fourth consecutive weekly loss despite being defensive at around $1,900 of late. The cautious mood ahead of the top-tier US employment and inflation clues could be linked to the XAU/USD’s latest inaction/consolidation. 

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