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22.06.2023 Market Report


The EUR/USD pair has surrendered the majority of intraday gains added in the Asian session. The major currency pair has faced some selling pressure while attempting to recapture the 1.1000 mark.


GBP/USD oscillates in a narrow trading band ahead of the key BoE decision on Thursday. Rising bets for a jumbo 50 bps lift-off continue to underpin the GBP and act as a tailwind. The USD languishes near the monthly low and further lends some support to the major.


USD/JPY picks up bids to pare intraday losses around 141.75 amid early Thursday morning in Europe. In doing so, the Yen pair justifies recently dovish commentary from a Bank of Japan (BoJ) Official, versus the hawkish bias of Federal Reserve (Fed) Chairman Jerome Powell.


AUD/USD fails to defend the first daily gains in four while making rounds to 0.6800 during early Thursday morning in Canberra. In doing so, the Aussie pair aptly portrays the market’s indecision after witnessing mixed signals from the US Federal Reserve (Fed) Chairman Jerome Powell and China, not to forget the lack of ability to please Aussie bulls with the Reserve Bank of Australia’s (RBA) hawkish rhetoric.


The NZD/USD pair trades with a positive bias for the second successive day on Thursday and is currently placed near the top end of its daily range, just above the 0.6200 round-figure mark. The New Zealand Dollar (NZD) drew some support from the domestic trade balance data, which showed that exports to China increased by 18% in May. This helps ease jitters over the Chinese economy and largely overshadows the fact that New Zealand’s trade deficit widened from NZ$ 17.02 billion to NZ$ 17.12 billion. Additional details showed that the monthly trade surplus narrowed from NZ$ 236 million to NZ$ 46 million in May against a deficit of N$ 350 million anticipated. Apart from this, subdued US Dollar (USD) price action lends some support to the NZD/USD pair.


The USD/CAD pair adds to the previous day’s heavy losses and remains depressed for the second successive day on Thursday, hitting its lowest level since September 2022 around mid-1.3100s during the Asian session. Crude Oil prices consolidate near a two-week high touched on Wednesday and continue to underpin the commodity-linked Loonie. The US Dollar (USD), on the other hand, is seen hovering around the monthly low in the wake of the overnight less hawkish remarks by Federal Reserve (Fed) Chair Jerome Powell, saying that it may make sense to raise rates at a more moderate pace. This, in turn, exerts some downward pressure on the USD/CAD pair, though a combination of factors helps limit further losses, at least for the time being.


USD/CHF remains pressured near 0.8925, poking the weekly low amid early Thursday after printing the first daily loss in four the previous day. In doing so, the Swiss Franc (CHF) pair struggles to cheer the US Dollar weakness ahead of the all-important Swiss National Bank (SNB) Interest Rate Decision.


Oil prices moved little in early Asian trade on Thursday, sticking near two-week highs as markets gauged mixed signals on U.S. crude inventories, while also awaiting more cues on monetary policy from the Federal Reserve.


Gold remains on the back foot as it jostles with short-term key support, lacks a directional sense of late, as markets await a slew of central bank decisions. Apart from the pre-announcement anxiety, the holiday in China and mixed catalysts about the Fed also restrict the XAU/USD price moves.

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