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10.04.2023 Market Report


The EUR/USD pair has surrendered to 1.0900 in the Asian session. The major currency pair has attracted significant offers as investors are getting anxious ahead of the release of the United States Inflation data.


GBP/USD takes offers to refresh intraday low, extend the previous week’s pullback from 10-month high. Risk aversion, hawkish Fed bets underpins US Dollar rebound amid Easter Monday holiday. BoE Governor Bailey’s speech will be eyed closely amid receding hawkish bias from major central banks.


The US dollar’s trend remains broadly down against the euro, the pound, and the yen. However, it could maintain a slightly firm tone ahead of the key US inflation data due on Wednesday, especially after Friday’s upbeat jobs report. Jobs data released on Friday suggested the labour market remains tight, keeping the door open for one more Fed rate hike next month. Nonfarm payrolls grew 236k in March, around 239k expected, but the unemployment rate slipped to 3.5% from 3.6% in February. US macro data have been downbeat since the end of March, as reflected in the sharp retreat in the Economic Surprise Index.


AUD/USD sticks to minor losses around 0.6670, despite recently bouncing off the intraday low, as bears lack influencers amid the Easter Monday holiday. In doing so, the Aussie pair fails to justify the escalating geopolitical tension between the US and China.


NZD/USD begins the trading week on a back foot as it drops to 0.6250 amid geopolitical fears emanating from China and Taiwan. Adding strength to the Kiwi pair’s downside move could be the recently firmer hawkish Fed bets. However, the Reserve Bank of New Zealand’s (RBNZ) 0.50% rate hike and cautious mood ahead of this week’s key data/events, as well as the Easter Monday holiday, put a floor under the prices.


USD/CAD holds lower ground near 1.3500, snapping a four-day winning streak, as traders brace for the key data/events amid the Easter Monday holidays in major bourses. That said, the Loonie pair’s latest weakness could be linked to the firmer price of Canada’s main export item, namely WTI crude oil. However, the dovish bias from the Bank of Canada (BoC), versus recently spiked hawkish Fed bets, challenge the pair sellers.


The USD/CHF pair is continuously trading lackluster above the critical mark of 0.9036 in the early Tokyo session. The Swiss Franc asset is struggling to find any direction as investors are shifting their focus toward the release of the United States Consumer Price Index (CPI) data, which will release on Wednesday.


WTI crude oil buyers struggle to keep the reins around $80.70 during early Monday as risk-aversion joins hawkish Fed bets to underpin the US Dollar rebound. However, challenges to Oil supplies, mainly emanating from China and OPEC+, seem to keep the black gold buyers hopeful.


Gold price has extended its downside to near $1,990.00 as the US Dollar Index (DXY) has refreshed the day’s high amid soaring anxiety among the market participants ahead of the release of the United States inflation data.

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