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24.03.2023 Market Report


EUR/USD is stalling the previous day’s retracement slide from the 1.0930 region, or its highest level since early February, and oscillates in a narrow trading band ahead of the European open this Friday. All eyes remain on the Eurozone and US PMI data. 


GBP/USD is trading steady below 1.2300 in the early European morning, awaiting the top-tier UK and US economic data for fresh trading impetus. Narrowing Fed-BoE policy divergence will likely keep the pair underpinned. 


USD/JPY portrays a corrective bounce off the multi-day low amid mixed inflation numbers from Japan and a shift in the sentiment during early Friday, following a volatile week. That said, the Yen pair picks up bids to 130.80 as it prints the first daily gain in three while keeping the late Thursday’s bounce off the lowest levels since February 10.


AUD/USD prints the first daily loss in three around 0.6670 while bracing for the weekly loss during early Friday. In doing so, the Aussie pair justifies its risk barometer status, as well as downbeat activity data at home. Earlier in the day, preliminary readings of Australia’s S&P Global PMIs for March dropped into the contraction figure of under 50.00 while slipping beneath the market forecasts and prior readings. That said, the Manufacturing gauge slid to 48.7 versus 50.3 expected and 50.7 prior while Services PMI declined to 48.2 from 50.7 previous readings and 49.7 market forecasts. With this, the Composite PMI dropped to 48.1 compared to 50.6 prior.


NZD/USD trims intraday losses around 0.6240 during early Friday morning as market sentiment dwindles during the first loss-making day in three. The Kiwi pair’s latest rebound could be linked to the dovish concerns surrounding the Federal Reserve’s (Fed) next move, as well as the downbeat yields. That said, the Fed’s heavy lending amid the banking rout flags fears of a ballooning Fed balance sheet, which in turn renews hawkish calls for the US central bank’s next moves. However, the mixed US data and the latest Fed statement appear to challenge the policy hawks. Also challenging the US Dollar could be the comments from key market players like DoubleLine’s Gundlach who recently reiterated his dovish bias for the US central banks.


USD/CAD has remained in a consolidative phase since the Federal Reserve (Fed) meeting on Wednesday, as the pair has yet to find any clear directional cues. Since the Fed signaled a pause, the pair remains indecisive. Downside pressure for the greenback comes from the Fed’s dovish rate decision on Wednesday and ongoing liquidity injections. On the other hand, the loonie is also under pressure as the Bank of Canada (BoC) paused rates, and falling oil prices weighed.


USD/CHF renews its intraday low near 0.9160 as it portrays the four-day losing streak during early Friday ahead of the key US data. In doing so, the Swiss Franc (CHF) pair justifies hawkish bias surrounding the Swiss National Bank (SNB) versus the dovish bets on the Federal Reserve’s (Fed) next move amid a sluggish end to the volatile week.


Oil prices trimmed early losses on Friday after a U.S. air strike on Iran-backed groups pushed up fears that rising tensions in the Middle East could disrupt supply, although concerns over weak demand and slowing economic growth still weighed.


Gold price is trading listlessly so far this Friday, as bulls take a breather after the recent blistering rally. The United States Dollar (USD) is consolidating the previous recovery, awaiting the preliminary release of the US S&P Global Manufacturing and Services PMI data.

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