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31.07.2023 Market Report


EUR/USD is holding steady, defending the 1.1000 mark in early Europe this Monday. The pair justifies the latest comments from the Fed and ECB policymakers and renewed US Dollar demand ahead of the critical Eurozone inflation and growth data. 


GBP/USD aptly portrays the market’s indecision near 1.2850 early Europe, bracing for a key week comprising the BoE policy decision and the US NFP data. The pair stays mildly bid amid a mixed market mood and a broad US Dollar rebound. 


The Dollar soared 1.6% against the Japanese Yen to 141.15 (139.50) in volatile week and month-end trading. Against the other major and EM Currencies, the Greenback was mixed.

At the conclusion of its meeting, the Bank of Japan unexpectedly adjusted its Yield Curve Control. The BOJ offered to buy 10-year Japanese Government Bonds (JGB’s) at 1.0% every day which led to market volatility. Japan’s Policy Rate remained unchanged at -0.10%.

In his press conference, BOJ Governor Ueda said the tweak was not a move toward normalization and that the BOJ, nowhere near raising rates, is weakening the Yen.


The AUD/USD pair recovers its recent losses and snaps a three-day losing streak heading into the early European session. The Aussie trades under pressure following the US Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) last week but gains momentum from the optimistic stimulus plan in China. Market players await the Reserve Bank of Australia’s (RBA) Interest Rate Decision on Tuesday for fresh impetus. The pair currently trades around 0.6681, up to 0.48% for the day.


The NZD/USD pair gains momentum and edges higher to 0.6175 during the early Asian session on Monday. The uptick in the Kiwi comes after the release of the Chinese NBS Manufacturing and Non-Manufacturing Purchasing Managers Index (PMI).


The USD/CAD pair kicks off the new week on a positive note and edges higher above the critical resistance area at 1.3250 during the early Asian session. Market participants will keep an eye on Canadian and US employment data later this week. The major pair currently trades around 1.3260, up 0.06% for the day.


The USD/CHF pair attracts some dip-buying near the 0.8675-0.8670 area on the first day of a new week and moves back closer to over a two-week high touched on Friday. Spot prices currently trade around the 0.8700 round-figure mark and look to build on last week’s goodish rebound from mid-0.8500s, or a fresh low since January 2015.

The prevalent risk-on environment – as depicted by a generally positive tone around the equity markets – is seen undermining the safe-haven Swiss Franc (CHF) and acting as a tailwind for the USD/CHF pair. The US Dollar (USD), on the other hand, holds steady just below a nearly three-week high and remains well supported by elevated US Treasury bond yields, bolstered by prospects for further policy tightening by the Federal Reserve (Fed).


Goldman Sachs on Sunday revised up its global oil demand forecast for the year while sticking to its 12-month Brent price projection of $93 per barrel as higher realized inventories offset the demand boost from a less pessimistic growth outlook.


Gold Price remains on the sideline, as market players brace for this week’s top-tier US employment and activity data. The yellow metal printed the first weekly loss in four the last but failed to impress the XAU/USD nears as it recovered on Friday amid softer US inflation clues.

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