Pre Loader

20.07.2023 Market Report


EUR/USD is paring back gains to test 1.1200 again in the early European morning. The pair has turned south again due to a modest uptick in the US Dollar in tandem with the US Treasury bond yields. Investors stay cautious ahead of mid-tier EU and US data. 


GBP/USD is approaching 1.2900, having met fresh supply in early Europe. The pair is resuming a four-day downtrend while fading the Asian bounce. A pause in the US Dollar decline is dragging the GBP/USD pair lower. Focus shifts to the US data. 


The USD/JPY pair lacks any firm intraday direction and oscillates in a narrow trading band around mid-139.00s through the Asian session on Thursday, below the one-week high touched the previous day. Against the backdrop of concerns over slowing economic growth in China, the worsening US-China ties and geopolitical tensions lend some support to the safe-haven Japanese Yen (JPY), which, in turn, acts as a headwind for the USD/JPY pair. In fact, China’s ambassador to Washington said on Wednesday that China does not want a trade or tech war but will respond if the US imposes more curbs on imports of equipment to make advanced chips. Russia’s defence ministry declared that any ships heading to Ukraine’s Black Sea ports would be viewed as potential carriers of military cargo and party to the conflict from Thursday.


AUD/USD takes the bids to refresh intraday high around 0.6825 while posting a quick 25 pip jump on the upbeat Australian jobs report for June. Adding strength to the Aussie pair’s upside move could be the US Dollar’s failure to defend the two-day recovery from a 15-month low amid mixed clues about the US Federal Reserve (Fed) and China. With this, the Aussie pair prints the first daily gains in five at the latest.


The NZD/USD pair builds on the overnight bounce from a one-week low and gains strong positive traction during the Asian session on Thursday. Spot prices jump to a fresh daily high, around the 0.6300 mark in the last hour and for now, seems to have stalled a four-day-old corrective decline from the highest level since February.

The US Dollar (USD) comes under renewed selling pressure as the markets continue to price out the possibility of any further rate hikes by the Federal Reserve (Fed) after the widely expected 25 bps lift-off in July and act as a tailwind for the NZD/USD pair. The New Zealand Dollar (NZD), on the other hand, draws support from stronger domestic consumer inflation figures released on Wednesday, which showed that the headline CPI rose by 1.1% during the second quarter as compared to the 1% estimated.


USD/CAD bears cheer the US Dollar’s retreat from the weekly high amid sluggish Oil prices early Thursday morning in Europe. That said, the Loonie pair drops for the fourth consecutive day to around 1.3145 by the press time, after refreshing the weekly low with the 1.3133 figure. In doing so, the quote consolidates Friday’s stellar rebound from the lowest levels since September 2022.


USD/CHF bears keep the reins at the lowest levels since January 2015, down for the second consecutive day while reversing the previous day’s corrective bounce. In doing so, the Swiss Franc (CHF) pair justifies the downbeat US dollar and firmer Swiss trade numbers around 0.8560 amid the initial hour of Thursday’s European session.


Oil prices were little changed on Thursday, as a lower-than-expected drop in U.S. crude inventories and a potentially weaker demand outlook kept investors cautious.


Gold price renews a two-month high, despite recently easing from the daily top, as it cheers the broad US Dollar retreat amid the sluggish markets. Adding strength to the XAU/USD run-up could be the price-positive headlines from China, as well as downbeat yields.

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.