Pre Loader

18.07.2023 Market Report


EUR/USD remains on the front foot near 1.1250 in early Europe this Tuesday. The pair is holding higher ground amid a broadly subdued US Dollar. Hawkish ECB commentary also keeps the pair afloat ahead of the key US Retail Sales data. 


GBP/USD is holding gains below 1.3100, lacking follow-through bias in the European morning. The divergent Fed-BoE policy outlooks support prospects for an appreciative move in the major. Any meaningful corrective slide might be seen as a buying opportunity ahead of key US data. 


USD/JPY holds lower grounds near the intraday bottom surrounding 138.50 amid early Tuesday morning in Europe. In doing so, the Yen pair fades the last Friday’s corrective bounce off the two-month low amid sluggish market conditions. That said, Japanese trader’s return from the holiday failed to infuse the market’s volatility as traders await the US Retail Sales and Industrial Production for June amid mixed feelings.


The AUD/USD pair is consistently demonstrating a sideways auction above the round-level support of 0.6800 in the Tokyo session. The Aussie asset has failed to find action despite Reserve Bank of Australia (RBA) minutes conveying that further interest rate hikes are required.


The NZD/USD pair manages to defend the 0.6300 mark and attracts some buying during the Asian session on Tuesday, stalling its retracement slide from levels just above the 0.6400 round figure or the highest since early February touched last week. Spot prices currently trade just below mid-0.6200s.


The USD/CAD pair struggles to gain traction on Tuesday, backed by the prevailing US Dollar selling bias. The major pair currently trades around 1.3185, down 0.09% on the day. The Federal Reserve Bank of New York reported Monday that the NY Empire State Manufacturing Index dropped from -5.5 to 1.1, above expectations of -3.5. The US Dollar remains under pressure amid cautious optimism, and markets anticipate the Federal Reserve (Fed) to be less hawkish in tightening monetary policy following an expected interest rate hike in the July 26 meeting. This, in turn, leads to the recent decline in the US Treasury bond yields and keeps the USD bulls on the defensive. 


The USD/CHF pair retreats from Monday’s high at 0.8630 and hovers around the 0.8600 area on Tuesday’s Asian session. The pair reverses from a multi-year low following Monday’s upbeat US Empire manufacturing survey. On Monday, the Federal Reserve Bank of New York revealed that the US Empire manufacturing survey of general business conditions index from July fell -5.5 to 1.1, above the market consensus of -3.5. The US Dollar posts a modest gain after the strong-than-expected data. That said, any meaningful USD rebound from its lowest level since April 2022 appears limited as the market participations anticipate that the Federal Reserve (Fed) is nearing the end of its policy tightening cycle.


Oil prices rose on Tuesday, steadying from recent losses as markets bet that worsening growth in China will invite more stimulus measures from the government, while focus also turned to readings on U.S. crude supplies.


Gold price is back on the bids above $1,950, snapping a two-day pullback from monthly highs. The United States Dollar (USD) is losing its recent recovery momentum, following the US Treasury bond yields, as all eyes now remain on the US Retail Sales data for a clear directional impetus.

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.