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27.07.2023 Market Report


EUR/USD is trading close to the 1.1100 round figure heading toward Thursday’s European session. The pair remains firmer for the second consecutive day but lacks upside momentum amid a cautious mood ahead of the ECB monetary policy decision.


GBP/USD scales higher for the third straight day and climbs to over a one-week high. The ongoing USD retracement slide from a two-week top act as a tailwind for the pair. Diminishing odds for more aggressive rate hikes by BoE warrant some caution for bulls.


The USD/JPY pair attracts some buying during the Asian session on Thursday and reverses a part of the previous day’s slide to the weekly low touched in the aftermath of the highly-anticipated FOMC decision. Spot prices currently trade just below mid-140.00s, up 0.15% for the day, and for now, seems to have stalled the recent pullback from the vicinity of the 142.00 mark.


The AUD/USD pair attracts some buyers and surges above the 0.6800 area during the Asian session on Thursday. The major pair currently trades around 0.6807, gaining 0.75% for the day. 

On Thursday, the Australian Bureau of Statistics showed that the Import Price Index QoQ in the second quarter dropped 0.8%, against the market consensus of a 7.3% decline and a 4.2% drop in the previous reading. Meanwhile, the Export Price Index fell 8.5%, worse than expected, with a 7.8% rise and a 1.6% increase in the first quarter.


NZD/USD prints the biggest daily gains in two weeks, so far, as it rises to 0.6274 amid early Thursday morning in Europe. In doing so, the Kiwi pair not only cheers the broad-based US Dollar weakness but also justifies a recovery in China’s industrial losses.


USD/CAD remains on the back foot around the intraday low, despite lacking downside momentum heading into Thursday’s European session.

In doing so, the Loonie pair prints the first daily loss in three as markets await the first readings of the US Gross Domestic Product (GDP) Annualized for the second quarter (Q2), expected to ease to 1.8% from 2.0%. Also important to watch is the US Durable Goods Orders for June, likely easing to 1.0% from 1.8% prior (revised), as well as the monetary policy announcements from the European Central Bank (ECB).


USD/CHF bears jostle with the key support around 0.8580 as markets brace for the European Central Bank (ECB) monetary policy decision during early Thursday, making rounds to 0.8600 round figure by the press time.

Even so, the Swiss Franc (CHF) pair stays bearish for the third consecutive day amid the broad US Dollar weakness, as well as due to the market’s cautious optimism. That said, the US Dollar Index (DXY) prints a three-day downtrend despite the Federal Reserve’s (Fed) 0.25% interest rate hike, as well as readiness for an interest rate increase in September, amid fears of a sooner end to the tightening spell. Also likely to have weighed on the greenback could be expectations of witnessing further easing in the US data, which in turn will challenge the Fed from lifting the rates in September.


Oil prices climbed 1% on Thursday, recouping losses from the previous session, as supply tightness and expectations of stronger Chinese demand overrode concerns about an economic slowdown.


Gold remains on the front foot for the third consecutive day as bulls cheer a fresh weekly top ahead of some more top-tier data/events, after marking a bullish reaction to the Federal Reserve (Fed) Interest Rate Decision. The XAU/USD fails to justify the Fed’s 0.25% interest rate hike.

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