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26.05.2023 Market Report


The EUR/USD pair has climbed above the critical mark of 1.0740 in the early European session after a firmer recovery from near the 1.0700 mark. The major currency pair is anticipated to extend further as the US Dollar Index (DXY) has extended its correction further to near 104.08.


GBP/USD is holding its recovery gains toward 1.2350 after the UK Retail Sales data came in mixed for April. Cable is advancing as the US Dollar is losing ground amid a correction alongside the US Treasury yields. Focus now shifts toward the US PCE inflation data. 


The USD/JPY pair has shifted its auction below the crucial support of 140.00 in the Asian session. The asset turned delicate following the footprints of the US Dollar Index (DXY). The USD Index has extended its correction to near 104.11 after failing to hold a fresh two-month high at 104.31. The correction in the USD/JPY pair seems higher in proportion than the correction in the USD index, which also indicates that the Japanese Yen has also gained some strength.


AUD/USD prints the first daily gain in four as it rebounds from the yearly low to 0.6515 heading into Friday’s European session. In doing so, the Aussie pair pays little heed to the downbeat Australian data while cheering the US Dollar’s pullback.


The NZD/USD pair is displaying a back-and-forth action after a soft recovery around 0.6070 in the early London session. The Kiwi asset is expected to extend recovery as the US Dollar Index (DXY) has shifted into the bearish trajectory amid bets favoring a pause in the rate-hike spell by the Federal Reserve (Fed).


USD/CAD bulls take a breather after refreshing the monthly high, retreating to 1.3645 during the mid-Asian session on Friday. In doing so, the Loonie pair takes clues from the latest retreat in the US Dollar price while also justifying the downbeat Oil prices and sour sentiment.


The USD/CHF pair is demonstrating topsy-turvy moves above 0.9050 in the early Tokyo session. The Swiss Franc asset is expected to remain sideways as investors have shifted their focus toward the release of the United States Durable Goods Orders data.


Oil prices retreated in Asian trade on Friday, extending a sharp drop from the prior session as traders awaited more clarity on the OPEC’s plans for future production cuts, while concerns over the U.S. debt ceiling kept markets on edge.


Gold pares weekly losses at the lowest levels in two months as markets await the key US data, as well as the debt ceiling deal. The precious metal’s latest rebound could be linked to the US Dollar’s retreat from a multi-day top as the latest headlines suggest that the policymakers still have sizeable differences to cut to avoid the US default.

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