Market Update - 17 January 2023

EUR/USD regains some poise near the 1.0830 region. German 10-year yields look to extend the recovery near 2.20%. Economic Sentiment in Germany and EMU come next in the docket. The European currency attempts to leave behind the recent weakness and motivates EUR/USD to advance modestly and revisit the 1.0830 region on Tuesday. (FXStreet)

GBP/USD takes offers to refresh intraday low, extends week-start pullback from one-month high. UK Claimant Count Change eased to 19.7K in December, Unemployment Rate remains unchanged for three months to November. US Dollar’s failure to track rebound in yields propel Cable prices despite negatives surrounding labor strike, inflation fears. Second-tier US data, risk catalysts can entertain traders ahead of the key Wednesday. (FXStreet)

GBP/JPY is struggling to sustain above 157.00 as UK wage growth might trigger inflation projections. The Japanese Yen is gaining strength despite rising uncertainty ahead of the Bank of Japan policy. A shortfall of labor in the UK economy is creating troubles for the Bank of England policymakers. GBP/JPY is demonstrating an Inverted Flag formation which might result in further weakness in the cross. (FXStreet)

The index extends the range bound theme around 102.30. US markets return to normal activity following Monday’s holiday. NY Empire State index, short-term auctions, Fedspeak next on tap. The greenback, in terms of the USD Index (DXY), navigates under some downside pressure in the 102.30 region on turnaround Tuesday. (FXStreet)

USD/CAD oscillates in a narrow band and is influenced by a combination of diverging forces. A modest uptick in crude oil prices underpins the Loonie and acts as a headwind for the pair. A softer risk tone benefits the safe-haven greenback and helps limit any meaningful downside. Traders now look to Canadian consumer inflation and the US macro data for a fresh impetus. (FXStreet)

AUD/USD is displaying topsy-turvy moves in a 0.6960-0.6978 range amid caution in the market mood. The formation of a Rising Channel indicates an upside trend in a limited territory. The Aussie asset has been overlapped by the 20-EMA, which indicates a consolidation added. (FXStreet)

NZD/USD edges higher on Tuesday, though lacks follow-through buying beyond 0.6400. The upbeat Chinese macro data lends support, though a combination of factors cap gains. Recession fears, a modest USD strength keeps a lid on any meaningful upside for the pair. (FXStreet)

USD/CHF takes offers to reverse the week-start rebound. DXY retreats despite firmer Treasury bond yields, sour sentiment as full markets return. Updates from Davos can entertain traders ahead of US Retail Sales. (FXStreet)

USD/INR picks up bids to portray three-day winning streak, extends bounce off monthly low. China’s upbeat data-dump fails to trigger risk-on mood as full markets return. US Dollar Index traces yields to pare recent losses around multi-month low. Risk catalysts are the key ahead of US Retail Sales for December. (FXStreet)

WTI picks up bids to reverse the week-start pullback from fortnight high. Confirmation of bullish chart pattern, looming bull cross on MACD favor buyers. Convergence of 100-EMA, flag’s lower line restricts immediate downside. (FXStreet)

Gold price depressed for the second successive day amid modest uptick in US Dollar strength. A combination of factors should help limit any meaningful pullback from a multi-month peak. Bets for smaller Fed rate hikes could lend support amid the risk of a potential global recession. (FXStreet)

Silver ticks down on Tuesday, though lacks any follow-through selling. The setup still favours bulls and supports prospects for additional gains. A break below the $23.40-35 confluence might negate the positive bias. (FXStreet)

Bitcoin prices (BTC) have made an incredible recovery over the past seven days, driving the major cryptocurrency above $20,000. Despite growing concerns of a global recession, BTC/USD has risen over 26% this month, pushing prices to another barrier of resistance at the November high of $21,473. (DailyFX)

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.