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07.09.2023 Market Report


EUR/USD takes offers to refresh intraday low near 1.0718 but posts mild losses while reversing the previous day’s corrective bounce off a multi-day bottom heading into Thursday’s European session. The Euro pair retreats towards the lowest level in three months marked on Wednesday.


The GBP/USD pair consolidates its recent losses around 1.2500. The Pound Sterling was weakened by Bank of England (BoE) Governor Andrew Bailey’s dovish remark on Wednesday. He stated that BoE is much closer to ending its hiking cycle.


The USD/JPY pair edges higher during the Asian session on Thursday and touches a fresh high since November 2022, around the 147.80-147.85 region in the last hour, albeit lacks follow-through.

The US Dollar (USD) stands tall near a six-month peak touched on Wednesday in the aftermath of the upbeat US macro data, which, in turn, is seen as a key factor acting as a tailwind for the USD/JPY pair. In fact, the US ISM Services PMI surpassed even the most optimistic estimates and rose to 54.5 in August, or the highest since February. Additional details of the report showed a rise in new orders and businesses paying higher prices, pointing to a resilient US economy and persistent inflation pressure. This increases the odds of an interest rate hike by the Federal Reserve (Fed) in November.


The AUD/USD pair struggles to gain any meaningful traction during the Asian session on Thursday and hovers just above its lowest level since November 2022 touched earlier this week. Spot prices currently trade around the 0.6370-0.6365 area and seem vulnerable to prolonging the recent well-established downtrend witnessed over the past two months or so.

The Australian Dollar (AUD) is undermined by weaker domestic data, which showed trade surplus shrank to $8.039 Billion in July as compared to $11.321 Billion in the previous month and $10.00 billion anticipated.


The NZD/USD pair remains on the defensive through the Asian session on Thursday and currently trades around the 0.5865-0.5860 region, or its lowest level since November 2022.

The US Dollar (USD) stands tall near a six-month peak in the wake of growing acceptance that the Federal Reserve (Fed) will keep rates higher for longer and turns out to be a key factor weighing on the NZD/USD pair. The markets now seem convinced that the US central bank will stick to its hawkish stance and the bets were reaffirmed by Wednesday’s upbeat US macro data, indicating that business activity in the US services sector unexpectedly picked up pace in August.


The USD/CAD pair gains momentum below the mid-1.3600s during the early Asian trading hours on Thursday. Meanwhile, the US Dollar Index (DXY) hovers around 104.85, retreating from 105.00 following the release of the US ISM Services PMI. The major pair currently trades near 1.3642, up 0.04% on the day.


USD/CHF clings to mild gains around the highest levels in two months, lacks momentum near 0.8920 heading into Thursday’s European session during a three-day winning streak.


Oil prices steadied in early Asian trade on Thursday, sticking to 10-month peaks as signs of another draw in U.S. inventories added to expectations that global crude supplies will tighten further this year.


Gold price snaps five-day losing streak, trading higher around $1,920, up by 0.20%. However, the bright metal is facing downward pressure as traders factor in the odds for a 25 basis points (bps) interest rate hike by the US Federal Reserve (Fed) through the end of the year 2023.

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