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17.07.2023 Market Report


EUR/USD is holding lower ground below 1.1250, extending the pullback from the highest levels since February 2022 during the mid-Asian session on Monday. The pair is weighed down by a brief US Dollar recovery following last week’s heavy sell-off. 


GBP/USD remains sidelined around 1.3090 amid Monday’s early Asian session, after reversing from the highest levels in 15 months. In doing so, the Pound Sterling struggles to cheer news of the UK’s biggest trade deal after Brexit due to the economic fears surrounding Britain. Also challenging the Cable buyers are the latest doubts on the market’s concerns about the Federal Reserve (Fed) during the two-week blackout period for the US central bank policymakers ahead of the late July monetary policy meeting.


The USD/JPY pair struggles to capitalize on Friday’s goodish rebound from the 137.25 area, or a nearly two-month low and kicks off the new week on a subdued note. Spot prices oscillate in a narrow trading band through the Asian session and currently trade just above mid-138.00s, awaiting a fresh catalyst before the next leg of a directional move.


AUD/USD bounces off intraday low to 0.6820 heading into Monday’s European session, paring the daily loss amid a sluggish start to the week. Even so, the Aussie pair remains on the back foot for the second consecutive day amid downbeat economic concerns at home, as well as surrounding the major customer China.  Also weighing on the Aussie pair could be the market’s consolidation of the US Dollar losses ahead of the late July Fed meeting.


The NZD/USD pair extends Friday’s modest retracement slide from the 0.6410 area, or its highest level since February and kicks off the new week on a weaker note. Spot prices remain depressed for the second successive day and trade around mid-0.6300s, moving little in reaction to mixed Chinese macro data.


The USD/CAD pair enters a bullish consolidation phase and oscillates in a narrow range, just below its highest level since June 13 touched during the Asian session on Friday. Spot prices currently hovers around the 1.3360-1.3365 region, nearly unchanged for the day, as traders keenly await the release of the crucial monthly employment details from the US and Canada. The Canadian jobs data, however, is more likely to be overshadowed by the closely-watched US NFP report, which could influence the Federal Reserve’s (Fed) policy outlook and drive the US Dollar (USD) demand. In the meantime, the uncertainty over the Fed’s future rate-hike path keeps the USD bulls on the defensive. Apart from this, the recent bullish run in Crude Oil prices is seen underpinning the commodity-linked Loonie and acting as a headwind for the USD/CAD pair.


The USD/CAD pair recovers some ground and holds above the 1.3220 mark in the early Asian session after hitting the lowest level since September 2022. Market participants will continue to digest the latest US inflation data and keep an eye on the Canadian Consumer Price Index (CPI) due on Tuesday amidst the Federal Reserve (Fed) blackout scheduled for July 25-26.


Oil prices fell in Asian trade on Monday, retreating further from recent highs as data showed that an economic recovery in China, the world’s largest oil importer, slowed substantially in the second quarter.


Gold price is holding its corrective downside intact near $1,950 at the start of the week on Monday, having retreated from two-month highs on Friday. The USD is clinging to recovery gains, in tandem with the US Treasury bond yields, awaiting top-tier US economic data amid the Fed ‘blackout period’.

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