Pre Loader

06.07.2023 Market Report


EUR/USD picks up bids to consolidate recent losses around the weekly low as it bounces off 1.0842 to 1.0850 amid very early Thursday morning in Europe. The Euro pair prepares for the top-tier statistics from Eurozone and the United States.


GBP/USD lacks any firm intraday direction and oscillates in a narrow range on Friday. Bets for more Fed rate hikes, a softer risk tone underpins the USD and caps the pair. Looming recession risks act as a headwind for the GBP and favours bearish traders.


The USD/JPY pair has slipped sharply to near 144.00 in the Tokyo session. The asset has registered a fresh weekly low at 143.92 as fears of intervention in the currency market by the Bank of Japan (BoJ) have soared. S&P500 futures have posted significant losses in the Asian session. US equities also faced selling pressure on Wednesday after a holiday mood amid uncertainty propelled ahead of the quarterly result season. Investors are not anticipating overall decent improvement as monetary policy remained extremely tight by the Federal Reserve (Fed) and commercial banks maintained tight credit conditions to protect asset quality in a turbulent environment.


The AUD/USD pair has found some support near 0.6640 in the late Asian session. The Aussie asset has sensed some buying interest after mild pressure in the US Dollar Index (DXY). The USD Index has witnessed a minor sell-off after printing a fresh four-day high at 103.40. Mild losses posted by S&P500 on Wednesday have extended sharply overnight as fears of a recession in the United States have elevated considering the fact that the Federal Reserve (Fed) will raise interest rates further. In June monetary policy meeting, Fed policymakers were mixed about skipping the rate-tightening spell.


NZD/USD remains directionless at the intraday low surrounding 0.6170 during the mid-Asian session on Thursday. In doing so, the Kiwi pair struggles to extend the previous day’s losses, the first in four, while also reversing the pullback from the highest levels in two weeks.


USD/CAD picks up bids to refresh the highest levels in three weeks around 1.3305 heading into Thursday’s European session. In doing so, the Loonie pair takes clues from the market’s broad risk aversion which propels the US Dollar while weighing on the prices of commodities and antipodeans. It’s worth noting that the grim concerns about China, one of the world’s biggest commodity users exert additional downside pressure on the Oil Price, which in turn propels the major currency pair due to Canada’s reliance on energy export as the key earning source.


USD/CHF advanced steadily on Wednesday after the release of US economic data painted a gloomy economic outlook in the United States (US) as traders prepare for the Federal Reserve’s (Fed) release of the latest monetary policy minutes. The USD/CHF trades at 0.8977 after hitting a daily low of 0.8957 and gains 0.08%.


Oil prices rose slightly in Asian trade on Thursday as markets weighed signs of a bigger-than-expected draw in U.S. inventories and tighter supplies against fears of rising interest rates. 


Gold price is making a minor recovery attempt to regain the $1,920 barrier in Thursday’s trading so far. The risk-off market mood combined with expectations of more US Federal Reserve (Fed) tightening support the US Dollar while US Treasury bond yields hit fresh multi-month highs heading into a slew of critical US employment data.

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.