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02.08.2023 Market Report


EUR/USD justifies the surprise US credit rating cut but rising to 1.1010 during the early hours of Wednesday’s Asian session. In doing so, the Euro pair reverses the previous day’s losses, the first in three, ahead of the key United States Automatic Data Processing (ADP) Employment Change, the early signal for Friday’s Nonfarm Payrolls (NFP).


GBP/USD remains on the defensive for the third successive day, albeit lacks follow-through. The emergence of some USD dip-buying turns out to be a key factor weighing on the major. The downside seems limited as traders seem reluctant ahead of the BoE meeting on Thursday.


The USD/JPY pair resumes its north-side journey and reclaims the 143.30 mark during the Asian session on Wednesday. Market participants await the US ADP Employment Change despite the lack of top-tier economic data released from Japan. USD/JPY currently trades around 143.30, losing 0.03% for the day.


AUD/USD stays defensive around 0.6615-20 while licking the wounds at the lowest level in a month amid early Wednesday in the Asia-Pacific zone. In doing so, the Aussie pair struggles to cheer the US Dollar’s retreat from a multi-day high while keeping the Reserve Bank of Australia (RBA) inflicted fears intact. That said, the US Dollar’s latest pullback could be linked to a surprise US credit rating cut, as well as the recently downbeat Federal Reserve (Fed) talks and the mixed US data.


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 NZD/USD pair extends its downside and edges lower to the 0.6140 mark during the early Asian session on Wednesday. The pair faces some pressure following the New Zealand employment data for Q2 and the headlines surrounding the US rating cut.


The USD/CHF pair snaps a four-day winning streak near 0.8730 during the early Asian session on Wednesday. Market participants await the US ADP employment report due in the American session for some hints for Friday’s Nonfarm Payrolls. Meanwhile, the US Dollar Index (DXY), a measure of the value of the Greenback against six other major currencies, loses momentum to 101.95 after retreating from the 102.45 mark.


Oil prices surged by almost 1% on Wednesday, trading near their highest since April, as crude and fuel products inventory data showing robust demand from the world’s biggest fuel consumer, the U.S., offset demand concerns elsewhere.


Gold price is attempting a minor recovery near $1,950, having slumped $20 to hit three-week lows on Tuesday. The United States Dollar (USD) is seeing a pullback from multi-week highs against its major peers, as US Treasury yields also retreat after Fitch lowered the US credit rating.

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