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03.08.2023 Market Report


EUR/USD is trading on the defensive below 1.0950, holding close to multi-week lows. Bets for more rate hikes by the Fed continue to underpin the US Dollar and exert pressure on the pair. The Greenback also benefits from a cautious mood. EU, US data awaited. 


GBP/USD is trading near 1.2700, languishing in three-week lows on ‘Super Thursday’. The pair is undermined by a broad US Dollar strength and the market’s anxiety ahead of multiple US data and the Bank of England (BoE) monetary policy announcements. 


USD/JPY prints mild losses around 143.20 as Japanese authorities take measures to defend the currency during early Thursday. In doing so, the Yen pair also takes clues from the market’s cautious optimism and the US Dollar’s retreat ahead of multiple US statistics.


The AUD/USD pair extends its downside above the 0.6500 area during the Asian session on Thursday. The pair loses traction for the second consecutive day following the softer Australian data and the risk-off mood in the market. AUD/USD currently trades around 0.6532, losing 0.1% for the day.


The NZD/USD pair seesaws around the 0.6080-0.6075 region. As investors digest the Fitch downgrade of the US credit rating, a modest recovery in the US equity futures turns out to be a key factor benefitting the risk-sensitive Kiwi and lending some support to the NZD/USD pair. A positive risk tone, meanwhile, keeps a lid on the recent US Dollar (USD) rally to its highest level since July 7, which, along with the better-than-expected China’s Caixin Services PMI, acts as a tailwind for the major. That said, firming expectations that the Federal Reserve (Fed) will stick to its hawkish stance favours the USD bulls and supports prospects for an extension of the pair’s three-week-old downtrend.


USD/CAD buyers keep the reins around 1.3350, despite the latest inaction, as market players await the key US data heading into Thursday’s European session. In doing so, the Loonie pair seesaws at the highest levels in a month, flashed earlier in the day, while pausing a two-day winning streak.

That said, the quote’s latest inaction could be linked to a pullback in the WTI crude oil price, Canada’s main export item, as well as the lackluster moves of the US Dollar Index (DXY) ahead of the top-tier data.


The USD/CHF pair consolidates in a narrow range above 0.8770 in the early Asian session after retreating from the key barrier around 0.8800. The solid US ADP Employment Change lifts the Greenback. The US Dollar Index (DXY), a measure of the value of USD against six other major currencies, surges to its highest level since July 7 at 102.80 in response to the news.


Oil prices were little changed on Thursday after a two-day decline, including a sharp drop on Wednesday, as a U.S. government credit downgrade weighed on sentiment, though concerns around supply tightness provided some support.


Gold Price remains on the back foot at the lowest level in three weeks despite recent consolidation. In doing so, the precious metal prints a three-day losing streak amid a firmer US Dollar and risk-off mood.

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