Pre Loader

01.08.2023 Market Report


EUR/USD stabilizes around the 1.1000 psychological mark, as the bulls and the bears struggle amid a mixed market mood, awaiting the key US JOLTS job openings data and ISM Manufacturing PMI for fresh directives. EU final PMIs are also awaited. 


GBP/USD edges lower for the second straight day on Tuesday, albeit lacks follow-through. The USD climbs to a fresh multi-week top and turns out to be a key factor exerting pressure. The downside seems limited ahead of the BoE on Thursday and the US NFP report on Friday.


The USD/JPY pair builds on its solid recovery from the 138.00 mark touched in the aftermath of the Bank of Japan’s (BoJ) policy tweak and gains some follow-through traction for the third successive day on Tuesday. The momentum lifts spot prices to a fresh three-week high, around the 142.80 region during the Asian session and is sponsored by a combination of factors.


AUD/USD nosedives 40 pips on the Reserve Bank of Australia’s (RBA) no rate hike decision, extending the early-day losses to around 0.6670 heading into Tuesday’s European session. That said, the Aussie pair’s further downside, however, appears elusive as markets await the US ISM Manufacturing PMI for July and JOLTS Job Opening for June.


he NZD/USD pair trades on a positive note and extends its upside above the 0.6200 mark in the early Asian session. The pair currently trades around 0.6210, gaining 0.02% for the day. Market players await the New Zealand employment data on Wednesday for fresh impetus.

Meanwhile, the US Dollar Index (DXY), a measure of the value of the Greenback against a basket of six major currencies, consolidates near 101.85 following last week’s gains against major rivals.


The US Dollar (USD) scales higher for the second successive day and climbs to its highest level since July 10 amid the prospects for further policy tightening by the Federal Reserve (Fed), which, in turn, is seen acting as a tailwind for the USD/CAD pair. It is worth recalling that Fed Chair Jerome Powell had said last week that the economy still needs to slow and the labour market to weaken for inflation to credibly return to the 2% target. Adding to this, the upbeat US GDP report pointed to a resilient economy and left door for one more 25 bps Fed rate hike in September or November wide open. This remains supportive of elevated US Treasury bond yields, which, along with concerns that China’s post-COVID recovery is stalling, further benefits the Greenback’s relative safe-haven status.


The USD/CHF pair attracts some buying following an intraday dip to sub-0.8700 levels during the Asian session and climbs back closer to over a two-week high touched last Friday. Spot prices currently trade around the 0.8725 region and seem poised to build on last week’s goodish rebound from mid-0.8500s, or a fresh low since January 2015.

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. Investors continue to cheer the latest optimism over more stimulus measures from China. This, along with expectations that the Federal Reserve (Fed) will soften its stance amid signs of easing inflationary pressures, remains supportive of the risk-on environment. In fact, the markets now seem convinced that the US central bank is nearing the end of its fastest interest rate hiking cycle since the 1980s.


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.


Oil prices were little changed on Tuesday, trading near a three-month high reached on Monday, on signs of tightening global supply, as producers implement output cuts, and strong demand in the United States, the world’s biggest fuel consumer.

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.