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28.09.2023 Market Report


EUR/USD is trading close to 1.0500, attempting a tepid recovery from eight-month lows of 1.0488 in European trading on Thursday. Broad US Dollar upside consolidation and Eurozone economic woes weigh on the pair ahead of the German inflation data.  


GBP/USD remains under selling pressure below 1.2150, heading toward the lowest since March 17 at 1.2110. Sustained US Dollar strength and a mixed market mood is capping the rebound limited in the pair. US data are next in focus. 


The USD/JPY pair surges to 149.50 during the early Asian session on Thursday. The uptick of the pair is bolstered by higher Treasury yields, upbeat US data, and risk aversion in the market. Meanwhile, the US Dollar Index (DXY) climbs to 106.65, the highest since November. The 10-year Treasury yield settled at 4.60%, its highest level since 2007.


The AUD/USD slipped to a ten-month low of 0.6331 in late Wednesday trading and is currently down around 45 pips, or -0.7%, for the day near 0.6350.

Australian Consumer Price Index (CPI) figures rose to 5.2% in August, in-line with market expectations and providing a minor boost for the Aussie (AUD) in the early Friday session, but bullish momentum for the AUD/USD proved short-lived as US data beats sent the Greenback (USD) higher once more.


The NZD/USD pair remains on the defensive below the mid-0.5900s during the early Asian trading hours on Thursday. The stronger US Dollar (USD) and higher Treasury yields lend some support to NZD/USD. The pair currently trades near 0.5928, gaining 0.09% for the day.


The USD/CAD pair extends the overnight retracement slide from the vicinity of mid-1.3500s, or a one-and-half-week high and remains under some selling pressure for the second successive day on Thursday. The steady descent drags spot prices further below the 1.3500 psychological mark during the Asian session and is sponsored by surging Crude Oil prices.


The USD/CHF pair reverses a modest Asian session dip on Thursday and now trades above the 0.9200 mark, well within the striking distance of its highest level since late March touched the previous day. Despite a modest downtick in the US Treasury bond yields, the US Dollar (USD) manages to hold steady near a 10-month high and turns out to be a key factor acting as a tailwind for the USD/CHF pair. Market participants now seem convinced that the Federal Reserve (Fed) will stick to its hawkish stance and have been pricing in the possibility of at least one more rate hike by the end of this year.  The bets were reaffirmed by the overnight hawkish comments by Minneapolis Fed President Neel Kashkari, saying that it is not clear yet whether the central bank is finished raising rates amid ample evidence of ongoing economic strength.


U.S. oil futures jumped to their highest in more than a year on Thursday as a drop in crude stocks in the United States added to worries over tight global supplies from OPEC+ output cuts.


Gold price enters a bearish consolidation phase on Thursday and oscillates in a narrow trading band near its lowest level in more than six months touched the previous day.

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