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31.05.2023 Market Report


EUR/USD is testing 1.0700, retreating from near the 1.0740 region in Wednesday’s Asian trading. Dismal China’s NBS Manufacturing PMI and pre-US debt deal vote anxiety reinstate the US Dollar’s safe-haven appeal. US/ German data, Fedspeak and House vote in focus. 


GBP/USD clings to mild losses as it extends the early Asian session pullback from a one-week high while snapping a three-day uptrend near 1.2390 heading into Wednesday’s London open. That said, the Cable pair’s latest gains could be linked to the US Dollar’s broad recovery, as well as downbeat concerns about the UK fundamentals and hawkish Federal Reserve (Fed) bets. Furthermore, fears of looming US default and mixed US data also allow the Pound Sterling bears to keep the reins.


USD/JPY struggles to portray the market’s slightly downbeat sentiment, as well as hesitates to justify the Bank of Japan (BoJ) Governor Kazuo Ueda’s comments, amid an unimpressive Wednesday morning in Europe. That said, the Yen pair treads water around 139.75 by the press time while pausing the two-day losing streak from the highest levels since November 2022.


The AUD/USD pair has shifted its auction below the 0.6500 mark in the Asian session. The Aussie asset has faced immense selling interest despite higher-than-anticipated monthly Australian inflation data.


The NZD/USD pair has tumbled to near 0.6016 after the release of mixed China’s official PMI data (May). China’s National Bureau of Statistics (NBS) has reported Manufacturing PMI at 48.8, lower than the estimates of 49.4 and the former release of 49.2. While Non-Manufacturing PMI jumped to 54.5 from the consensus of 50.7 but remained lower than the former figure of 56.4.


USD/CAD picks up bids around 1.3650 heading into Wednesday’s European session. In doing so, the Loonie pair justifies the market’s cautious mood ahead of the Canadian first quarter (Q1) 2023 Gross Domestic Product (GDP), as well as the key risk catalysts, namely the US debt ceiling deal updates and the Fed bets.


The USD/CHF pair has turned sideways around 0.9060 in the early Asian session after a V-shape recovery. The Swiss Franc asset is expected to recapture the 0.9080 mark despite a subdued performance by the US Dollar Index (DXY). Strength in the USD/CHF pair despite the sluggish USD index indicates that the Swiss Franc bulls are also weak. The Swiss Franc bulls witnessed immense selling pressure on Tuesday despite the release of upbeat Q1 Gross Domestic Product (GDP) data. Annual GDP matched expectations at 0.6% while quarterly GDP expanded by 0.3% while the street was anticipating an expansion of 0.1%.


Oil prices edged lower in Asian trade on Wednesday, retaining steep declines from the prior session as markets awaited a vote on the U.S. debt ceiling, while disappointing economic data from China brewed more concerns over sluggish demand.


Gold price witnessed extreme selling pressure after a short-lived pullback move to near $1,946.70 in the Asian session. The precious metal has extended its downside journey to near $1,940.00 as the US Dollar Index (DXY) has recovered its entire losses and is aiming to print afresh day high above 104.34.

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