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23.03.2023 Market Report


EUR/USD is trading above 1.0900, extending gains early Thursday. The pair stays firmer amid a broadily depressed US Dollar. Investors are assessing the latest dovish outlook from the Fed ahead of the SNB and BoE policy outcomes, which could trigger fresh volatility surge across the FX board. 


GBP/USD is advancing toward 1.2350 ahead of the BoE’s policy announcements. Strong UK CPI data, PM Sunak’s Brexit success and dovish Fed hike add strength to the Cable’s bullish momentum.


USD/JPY picks up bids to pare intraday losses around 130.80 amid early Thursday morning in Europe. In doing so, the Yen pair bounces off a six-week low marked earlier in the day as traders seek more clues to extend the Federal Reserve (Fed) induces moves. Adding strength to the corrective bounces could be the key policymakers’ rejection of the financial crisis, as well as the downbeat details of Japan’s Reuters Tankan survey.


The AUD/USD pair has scaled higher to 0.6750 in the early European session. The Aussie asset has been strengthened after the Federal Reserve (Fed) chair Jerome Powell delivered cues about pausing the rating-hiking spree after hiking rates by 25 basis points (bps) to 4.75%-5.00%. The street is expecting that Fed Powell has considered a pause amid fears of a banking debacle after the collapse of three mid-size United States banks.


The NZD/USD pair has extended its recovery move to near 0.6250 in the Asian session. The Kiwi asset rebounded firmly from 0.6220 as the US Dollar Index (DXY) showed a short-lived pullback move after dropping to near 102.00. The USD Index is hovering near its six-month low and is expected to continue its downside momentum as the Federal Reserve (Fed) has approached to its terminal rate.


USD/CAD bears return to the table, after a two-day absence, as broad US Dollar weakness joins the Oil price run-up during early Thursday. With this, the Loonie pair renews its intraday low near 1.3700 during the sluggish Asian session.


The USD/CHF pair has slipped below the 0.9160 mark in the Asian session. The Swiss franc asset has retreated after a recovery attempt to near 0.9180 as the commentary from Federal Reserve (Fed) chair Jerome Powell in his monetary policy statement indicates that the central bank is close to reaching the terminal rate.


Oil prices fell in Asian trade on Thursday tracking weak economic signals from the Federal Reserve, while media reports suggested that OPEC+ will likely keep output unchanged next month, despite a recent crash in prices.


Gold is gathering pace for the next push higher as US Dollar stays offered. US Treasury bond yields got smashed on dovish US Federal Reserve policy guidance. XAU/USD price is forming a bull pennant on the daily chart, with a bullish RSI.

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