Market Update - 19 January 2023

EUR/USD adds to Wednesday’s gains and advances through 1.0800. ECB Accounts, Chairwoman Lagarde come next in the docket. Weekly Claims, housing results and the Philly Fed Index due next in the US. (FXStreet)

The index trades slightly on the defensive around 102.30. The dollar meets resistance near the 103.00 mark so far this week. The Philly Fed Index, weekly Claims and housing data next on tap. The greenback, in terms of the USD Index (DXY), remains under pressure in the lower end of the range near 102.30 on Thursday. (FXStreet)

GBP/USD treads water as bulls and bears jostle between crucial resistance and support. Looming bear cross on MACD, failure to cross 1.2450 hurdle tease sellers. Two-week-old ascending trend line, 200-SMA limit downside moves. RSI conditions suggest further grinding towards the north. (FXStreet)

GBP/JPY witnessed heavy selling on Thursday and retreats further from a three-week high. Recession fears boost demand for the safe-haven JPY and exert some downward pressure. The prospects for more BoE rate hikes underpin the GBP and should limit deeper losses. (FXStreet)

USD/JPY consolidates the previous day’s gains as yields renew multi-month low. Downbeat Japan trade numbers, fears of softer demand from China and US recession woes fail to stop JPY bulls. US Dollar remains depressed amid softer US data, mixed updates. (FXStreet)

USD/CAD hits a nearly two-week high on Thursday, albeit lacks follow-through. Retreating crude oil prices undermines the Loonie and lends support to the major. Falling US bond yields keep the USD bulls on the defensive and act as a headwind. (FXStreet)

USD/MXN picks up bids to renew intraday high, defends two-day gains. US Dollar remains pressured as softer US data fails to support hawkish Fed talks. Mexican Peso is among the top Emerging Market performers as commodity prices surge. (FXStreet)

AUD/USD bears poke previous monthly top during a two-day downtrend from five-month high. Australia jobs report bolstered case for slower rate hike from the RBA. US Treasury bond yields renew multi-day low even as downbeat data, hawkish Fedspeak renew recession fears. (FXStreet)

USD/IDR struggles to extend losses despite breaking seven-month-old support line as traders await Bank Indonesia (BI) Rate decision. 200-DMA, oversold RSI conditions also challenge bears around multi-day low. Buyers remain off the table unless rising back beyond 100-DMA. BI is expected to end the rate-hike cycle with 0.25% lift in benchmark interest rate. (FXStreet)

NZD/USD trades with modest losses on Thursday, though the downside remains cushioned. Looming recession risks weigh on investors’ sentiment and undermine the risk-sensitive Kiwi. Subdued USD price action lends some support to the major and helps limit any deeper losses. (FXStreet)

USD/INR holds lower ground as bears cheer three-day downtrend amid softer US Dollar. Downbeat US data, mixed Fedspeak weigh on the greenback. Optimism surrounding China, softer Oil price adds strength to the INR. (FXStreet)

USD/CHF consolidates recent losses around the lowest levels since November 2021. A two-month-old bearish channel, downbeat oscillators keep sellers hopeful. Bear cross, clear downside break of key ascending trend line adds strength to the bearish bias. Recovery remains elusive unless the quote stays below 200-DMA. (FXStreet)

Crude oil sinks the most in 2 weeks as soft US data scares traders Meanwhile, an IEA report underscored 2023 global supply glut bets Focus shifts to EIA weekly stockpiles as WTI faces triangle pattern. (DailyFX)

Prices of natural gas dropped further on Wednesday and revisited levels last seen back in May 2021. The downtick was amidst increasing open interest, which leaves the prospects for extra losses well on the cards for the time being. That said, the $3.00 mark per MMBtu still emerges as the next support of note for the commodity. (FXStreet)

Gold prices charted the third consecutive daily pullback on Wednesday. The leg lower was amidst shrinking open interest and volume and leaves the door open to a potential near-term rebound with the immediate target at recent peaks near $1930 per ounce troy. (FXStreet)

Silver extends its descent for the third successive day and drops to over a one-week low. The technical setup now favours bearish traders and supports prospects for a further fall. A convincing break below the trend-channel support will reaffirm the negative outlook. (FXStreet)

Source: FXStreet, DailyFX

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