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02.05.2023 Market Report


EUR/USD cheers US Dollar’s retreat to snap three-day downtrend near 1.0990 during early Tuesday morning in Europe. In doing so, the Euro pair also benefits from the market’s anxiety ahead of the key Eurozone inflation data amid return of the bloc’s traders after a long weekend.


The GBP/USD pair is showing back-and-forth action in a narrow range below 1.2500 in the early Asian session. The Cable is demonstrating a volatility contraction, however, a power-pack action is expected ahead of the interest rate decision by the Federal Reserve (Fed) and the United States Automatic Data Processing (ADP) Employment data.


USD/JPY remains sidelined after refreshing a two-month high,  dropping to 137.30 during early Tuesday. In doing so, the Yen pair portrays the cautious mood ahead of the key US data/events amid the full market’s return, after Monday’s holiday in major bourses.


AUD/USD soars above 0.6680. The Reserve Bank of Australia (RBA) board members made the decision to increase the Official Cash Rate (OCR) to 3.85% during its May monetary policy meeting, contrary to the market’s expectation of the central bank maintaining the status quo.


NZD/USD has been trading in a sideways fashion to start the week in choppy holiday conditions. The pair travelled between a low of 0.6161 and 0.6200. The focus was on US and Chinese data and the calming of US regional bank jitters in the wake of the sale of First Republic Bank.


The USD/CAD pair has been oscillating in a narrow range around 1.3550 from the past two trading sessions. The Loonie asset is continuously defending the 1.3540 mark amid overall strength in the US Dollar Index (DXY).


USD/CHF seesaws around 0.8950-60 during early Tuesday. In doing so, the Swiss Franc (CHF) pair justifies the previous day’s Doji candlestick while positing mild losses near the stated price after an upward start to the week.


Oil prices kept to a tight range in early Asian trade on Tuesday as markets hunkered down before a widely expected Federal Reserve interest rate hike and more cues on U.S. monetary policy due later in the week.


Gold price is displaying a back-and-forth action above $1,980.00 in the Tokyo session. The precious metal is struggling to find direction as investors are awaiting the announcement of the Federal Reserve’s (Fed) monetary policy and other key United States data.

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