Pre Loader

28.07.2023 Market Report


EUR/USD is on the back foot near 1.0950 in the early European morning. The US Dollar is consolidating weekly gains ahead of the key PCE inflation data. Dovish ECB rate hike will likely keep Euro bears in control. German inflation data eyed as well. 


The GBP/USD pair remains depressed for the second successive day on Friday and touches a nearly three-week low, around the 1.2765 region during the Asian session.

The US Dollar (USD) builds on the previous day’s strong rally from a one-week low and climbs to its highest level since July 10, which, in turn, is seen as a key factor exerting some pressure on the GBP/USD pair. Thursday’s upbeat US macro data pointed to an extremely resilient US economy and increased the likelihood that the Federal Reserve (Fed) could further hike interest rates. The US Commerce Department reported that the world’s largest economy expanded by 2.4% annualized pace during the April-June quarter, beating expectations. Adding to this, the Initial Jobless Claims unexpectedly fell to 221K in the week ended July 22.


USD/JPY is trading around 139.00, recovering ground following a dip to 138.00  The Yen holds the rebound on the BoJ’s pledge to guide YCC with great flexibility. The BoJ, however, maintained its ultra-loose policy. Ueda’s presser and US PCE inflation data eyed. 


The AUD/USD pair remains under pressure and trades on a defensive note around the 0.6660 mark during the Asian session on Friday. The prevalent US Dollar buying bias following the upbeat US economic data released supports the US Dollar and exerts pressure on AUD/USD. The major pair currently trades around 0.6665, losing 0.61% for the day. 


The NZD/USD pair loses its traction and holds below the 0.6200 area in the early Asian session after retreating from a weekly high of 0.6275. The US dollar Index (DXY), a measure of the value of the Greenback against six other major currencies, jumps to its highest level since July 11, near 101.70, as upbeat US economic figures boosts the Greenback on Friday. 


USD/CAD remains sidelined near 1.3230, mildly bid during a four-day uptrend amid early Friday. In doing so, the Loonie pair defends the previous day’s run-up at the weekly top even as the market turns cautious ahead of the top-tier US data, as well as due to the mixed sentiment about the US-China ties. It’s worth noting that a pullback in the WTI crude oil prices from a multi-day high also prods the Loonie pair as Canada relies heavily on energy exports for earnings.


The USD/CHF pair recovers its losses and consolidates its gain near 0.8692 during the early Asian session on Friday. The pair gains momentum following the upbeat US economic data released on Thursday. The US Dollar Index (DXY), a measure of the value of the Greenback against six other major currencies, rebounds above 101.70.


Oil prices fell on Friday as traders locked in profits after strong gains this week, while a recovery in the dollar, on the back of strong U.S. economic data, also weighed on crude markets.


Gold price is attempting a modest pullback from two-week lows of $1,943 reached on Thursday, heading towards its biggest weekly decline in five. The United States Dollar (USD) is clinging to recovery gains ahead of yet another high-impact US data, in the PCE inflation.

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.