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03.07.2023 Market Report


EUR/USD is holding steady above 1.0900, defending the latter ahead of the European Open. The pair is looking for a fresh directional impetus amid thin trading conditions and ahead of the Eurozone final PMIs and the top-tier US ISM Manufacturing PMI. 


GBP/USD remains confined in a narrow trading band through the Asian session on Monday. Bets for more Fed rate hikes help revive the USD demand and cap the upside for the major. The BoE’s aggressive tightening fuel recession fears and also act as a headwind for the GBP.


USD/JPY seesaws around 144.60 as it seeks fresh clues to defend intraday gains amid a sluggish start to another key trading week. In doing so, the Yen pair reverses the previous day’s retreat from the highest levels since November 2022 amid mixed risk catalysts and downbeat Japan data.


The AUD/USD pair struggles to capitalize on last week’s bounce from sub-0.6600 levels and oscillates in a narrow trading band through the Asian session on Monday. Spot prices currently trade around mid-0.6600s, nearly unchanged for the day, and move little in reaction to the official Chinese PMI print.


NZD/USD retreats from intraday high to around 0.6135 as the pair traders await the top-tier PMIs from China and the US amid the early hours of Monday’s Asian session. In doing so, the Kiwi pair consolidates intraday gains after posting an upside gap to begin the trading week, not to forget the two consecutive weekly and quarterly falls in the last.


The USD/CAD pair kicks off the new week on a positive note, following a good two-way price swings on Friday, and maintains its bid tone, around mid-1.3200s through the Asian session.

Firming expectations the Federal Reserve (Fed) will continue to tighten its monetary policy assist the US Dollar (USD) to attract some buyers on Monday, which, in turn, is seen as a key factor acting as a tailwind for the USD/CAD pair. It is worth recalling that Fed Chair Jerome Powell reiterated last week that borrowing costs may still need to rise as much as 50 bps by the end of this year. Moreover, the current market pricing indicates a nearly 85% chance of a 25 bps lift-off at the next FOMC policy meeting in July and the bets were reaffirmed by the fact that the US PCE Price Index remains well above the 2% inflation target.


The USD/CHF pair has fallen back after a short-lived recovery move to near 0.8957 in the Asian session. The Swiss Franc asset is expected to continue its downside journey after dropping below the crucial support of 0.8930 ahead of crucial economic events.


Oil prices moved little in Asian trade on Monday, retaining a bulk of their recent gains as markets awaited fresh cues from an OPEC meeting and U.S. economic data this week.


Gold price has paused the late-recovery seen last week just above $1,920, starting out a new week on the wrong foot so far this Monday. A renewed upswing in the United States Dollar (USD) alongside the US Treasury bond yields amid a mixed market mood is weighing on the Gold price.  

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