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31.08.2023 Market Report


EUR/USD is easing toward 1.0900, stalling the previous recovery in the early European morning on Thursday. The US Dollar finds its feet, as markets turn cautious ahead of key inflation data releases from the Eurozone and the US. 


The GBP/USD pair consolidates its weekly gains registered over the past three days and seesaws between tepid gains/minor losses through the Asian session on Thursday. Spot prices trade around the 1.2720 region, nearly unchanged for the day and just a few pips below a one-week high touched on Wednesday.


The USD/JPY pair struggles to capitalize on the overnight modest bounce from the 145.55 region, or the weekly low and attracts fresh sellers on Tuesday. Spot prices remain depressed below the 146.00 mark heading into the European session, though the fundamental backdrop warrants caution before positioning for an extension of this week’s pullback from the YTD peak touched on Tuesday. Worries about a deeper global economic downturn drive some haven flows towards the Japanese Yen (JPY), which, in turn, exerts some downward pressure on the major.


AUD/USD retraces from the previous day’s losses, trading higher around 0.6480 at the time of writing during the Asian session on Thursday. The pair is experiencing upward support due to the downbeat US Treasury yields and disappointing US economic data.


The NZD/USD pair attracts some dip-buyers near the 0.5945-0.5940 area during the Asian session on Thursday and for now, seems to have stalled the overnight pullback from the 0.6000 psychological mark, or a nearly three-week high. Spot prices touch a fresh high, around the 0.5975 region in the last hour, though lack follow-through and react little to the mixed Chinese macro data.


USD/CAD picks up bids to extend the early Asian session rebound from the weekly low as markets brace for Thursday’s top-tier US inflation clues. Even so, the Loonie pair buyers lack confidence around 1.3535 by the press time. Apart from the pre-data consolidation, a pullback in Canada’s main export item, namely WTI crude oil also puts a floor under the prices after a three-day losing streak.


The USD/CHF pair gains traction around 0.8795 during the early European session on Thursday. The Swiss Franc is weakened against the US Dollar (USD) following the release of Swiss Real Retail Sales. Market participants will shift their attention to the US Core Personal Consumption Expenditure Price Index (PCE) and the weekly Jobless Claims due later in the North American session.


Oil prices steadied near a 10-day high in Asian trade on Thursday as Chinese business activity data offered mixed cues on the world’s largest oil importer, although a weak dollar and signs of tighter supply still presented some upside for crude.


Gold Price holds steady at the highest level in four weeks during a four-day winning streak as market players await the key inflation clues from the US and Eurozone. That said, the recently downbeat US data have raised concerns about the Fed policy pivot and bolstered the XAU/USD price.

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