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26.04.2023 Market Report


EUR/USD is rebounding toward 1.1000, as bears take a breather after posting the biggest daily loss in 1.5 months. The pair is benefiting from the latest retreat in the US Dollar amid a recovery in risk sentiment and ahead of US Durable Goods data. 


GBP/USD is recovering ground toward 1.2450 after defending the 1.2400 level. Markets are witnessing an improvement in risk sentiment in the early European morning, weighing on the safe-haven US Dollar. The focus shifts to the US economic data and Meta earnings. 


Risk sentiment has soured and combined with falling longer-term US Treasury yields has led to a bid in the Yen that has started to see a topping in USD/JPY´s rally. However, as the following analysis illustrates, the price is still on the front side of the bullish trend on the longer-term outlook which leaves 132.00 key in this regard, 


The AUD/USD pair is continuously declining towards the 0.6600 mark after the Australian Bureau of Statistics reported further softening of inflation data. The quarterly Consumer Price Index (CPI) (Q1) accelerated by 1.4% but was lower than the former pace of 1.9%. Annual inflation has softened to 7.0%, a little higher than the estimates of 6.9% but lower than the prior release of 7.8%.


The NZD/USD pair has displayed a pullback move to near 0.6147 after a three-day low of 0.6133 in the Tokyo session. The Kiwi asset might see a conclusion of pullback move sooner as the Reserve Bank of New Zealand’s (RBNZ) proposal to loosen the loan-to-value ratio (LVR) restrictions has delivered an approach of consideration of easing monetary policy.


USD/CAD struggles to extend the biggest daily gains in seven weeks as it makes rounds to 1.3620-30 during early Wednesday. In doing so, the Loonie pair seems to take clues from the latest pause in the Oil price downside, Canada’s main export, as well as the market’s consolidation ahead of the key US Durable Goods Orders for March. However, fresh fears surrounding the bank fallouts and the US debt ceiling expiration keep the Loonie pair buyers hopeful, especially amid the Bank of Canada’s (BoC) comparatively dovish bias than the Federal Reserve (Fed).


USD/CHF has witnessed a steep fall after failing to sustain above the critical mark of 0.8920 in the early European session. The Swiss Franc asset is declining towards the 0.8900 mark as the US Dollar Index (DXY) has extended its correction further. The absence of anxiety among investors ahead of the United States Durable Goods Orders data has trimmed the appeal for the US Dollar Index.


Oil prices kept to a tight range in early Asian trade on Wednesday as markets weighed signs of shrinking U.S. inventories against concerns over slowing economic growth this year, which had triggered sharp losses in the prior session.


Gold price stays defensive around $1,995 as the metal buyers await fresh clues to defend the two-day uptrend amid early Wednesday. The XAU/USD struggles amid cautious optimism in the market, as well as anxiety ahead of a key clue for the US GDP for the first quarter.

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