Market Update - 12 January 2023

USD/CAD attracts fresh buying on Thursday, though the upside potential seems limited. A modest downtick in oil prices undermines the Loonie and lends support to the major.,Smaller Fed rate hike bets weigh on the USD and could cap gains ahead of the US CPI. (FXStreet)

The index extends the decline and challenges 103.00. US inflation figures is expected to have retreated further in December. US yields trade slightly on the defensive on Thursday. The greenback, when tracked by the USD Index (DXY), adds to Wednesday’s tepid losses and pokes with the 103.00 neighbourhood on Thursday. (FXStreet)

USD/JPY has refreshed its day’s low at 131.40 as odds for further US inflation softening soar. Federal Reserve might look to tweak its monetary policy projections if US inflation continues its downside spree. The Bank of Japan is firmly considering an exit from its secular long ultra-loose monetary policy. USD/JPY is hovering near the lower portion of the inventory adjustment phase. (FXStreet)

GBP/JPY drops the most in a week while reversing from the key hurdle. Convergence of 21-DMA, fortnight-long descending trend line guards immediate upside. 61.8% Fibonacci retracement level lures bears, 164.30 appears strong resistance. (FXStreet)

EUR/JPY stands on slippery grounds as it snaps four-day uptrend. Upbeat BOJ economic assessment favors previous hawkish calls to exit easy money policy. ECB policymakers back further rate hikes to ward off the inflation risks. (FXStreet)

GBP/USD grinds near intraday high, snaps two-day losing streak. Bullish candlestick formation, sustained bounce off key moving average favor buyers. Sellers remain off the table unless witnessing fresh monthly low. (FXStreet)

EUR/GBP is facing barricades while crossing the 0.8878-0.8882 hurdle. The 20-EMA at 0.8853 is providing support to the Euro bulls. A slippage of the RSI (14) into the 40.00-60.00 range indicates a loss in the upside momentum. (FXStreet)

USD/INR seesaws near five-week low as bears take a breather after six-day downtrend. Upbeat Oil prices, unimpressive details from India join mixed China inflation to keep buyers hopeful. Markets brace for softer US inflation but a surprise can’t be ruled out. (FXStreet)

AUD/USD surrenders modest intraday gains and retreats below the 0.6900 mark in the last hour. The cautious market mood lends some support to the safe-haven buck and acts as a headwind. Bets for an additional RBA rate hike in February should limit losses ahead of the key US CPI. (FXStreet)

AUD/JPY snaps four-day winning streak, stays pressured around intraday low of late. Descending trend line from September 2022 challenges buyers. Impending bearish moving average crossover keeps sellers hopeful despite bullish MACD signals. (FXStreet)

Prices of the WTI rose markedly on Wednesday amidst increasing open interest and volume, opening the door to the continuation of the recovery in the very near term. Against that, the next target of note comes at the January high at $81.44 per barrel recorded on January 3. (FXStreet)

Gold price remain firmer around the highest levels since May 2022. Resistance-turned-support from mid-November, upbeat China CPI put a floor under XAU/USD price. Downbeat market consensus for US CPI, Fed’s hesitance keeps Gold buyers hopeful. (FXStreet)

Silver attracts fresh buying in the vicinity of support marked by the 200-SMA on the 4-hour chart. The recent two-way price moves warrant some caution before placing aggressive directional bets. Bulls might wait for a sustained move beyond the $24.00 mark before positioning for further gains. (FXStreet)

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.