Market Update - 27 January 2023

USD/CAD regains some positive traction on Friday amid a modest pickup in the USD demand. Thursday’s upbeat US macro data fuels hawkish Fed expectations and benefits the greenback. Bullish crude oil prices continue to underpin the Loonie and keep a lid on any further gains. Traders now eye the US PCE report for a fresh impetus ahead of the FOMC meeting next week. (FXStreet)

The index extends the optimism and retargets 102.00. US yields pick up extra pace along the curve on Friday. Final Consumer Sentiment, PCE, housing data next on tap. The greenback, in terms of the USD index (DXY), maintains the bullish outlook and refocuses on the 102.00 barrier and beyond at the end of the week. (FXStreet)

EUR/GBP takes the bids to refresh intraday low after snapping two-day downtrend. Convergence of 200-EMA, immediate descending trend line guards recovery moves. 50% Fibonacci retracement appears the key support for bears to watch. (FXStreet)

USD/JPY retreats towards intraday low, reverses the previous day’s corrective bounce. BoJ extends five-year loans against collateral to financial institutions to defend YCC as JGB rallied after Tokyo inflation. US Dollar traces firmer yields ahead of US Core PCE Price Index for December. (FXStreet)

EUR/USD takes offers to refresh intraday low, extend the previous day’s pullback from nine-month high. US data flashed mixed signals but rebound in Treasury bond yields puts a floor under US Dollar. Absence of ECB speak, cautious sentiment ahead of the key US data exerts downside pressure on Euro pair. (FXStreet)

GBP/USD clings to mild losses during the first negative day in three. Mixed US data signals Fed’s dovish hike but chatters over BoE’s rate peak challenge Cable buyers. UK Treasury Secretary Hunt’s hesitance to cut the taxes also weighs on GBP/USD prices. Cautious mood could probe pair traders ahead of US Core PCE Price Index for December. (FXStreet)

AUD/USD seesaws around seven-month high, fades upside momentum after five-day winning streak. Mixed details of Australia’s Q4 Export-Import Price Index, PPI probe Aussie pair buyers. Cautious mood ahead of the Fed’s preferred inflation also acts as upside filter. RBA versus Fed drama, easing economic slowdown fears underpin bullish bias. (FXStreet)

USD/INR has surpassed the critical hurdle of 81.60 amid sheer recovery in the USD Index. Anxiety ahead of the US PCE data has trimmed the risk appetite of the market participants. Softening US core PCE price index might not surprise investors as core US CPI and PPI were also trimmed. (FXStreet)

NZD/USD surrenders modest intraday gains amid the emergence of some buying around the USD. Thursday’s upbeat US macro data fuels hawkish Fed expectations and underpins the greenback. A positive risk tone acts as a headwind for the buck and offers support to the risk-sensitive Kiwi. (FXStreet)

Prices of the barrel of the WTI added to the previous daily upside on Thursday amidst increasing open interest and volume. Against that, there seems to be scope for the continuation of the move with the immediate target at the so far 2023 peak at $82.60 per barrel (January 23). (FXStreet)

Prices of the natural gas kept its downtrend well in place for yet another session on Thursday. The move was amidst rising open interest and volume and underpins the idea that extra weakness remains on the cards in the very near term. The next target of note appears at the 2021 lows around $2.40 per MMBtu. (FXStreet)

Gold price remains on the defensive for the second straight day amid modest US Dollar strength. Thursday’s upbeat US macro data fuels hawkish Fed expectations and underpins the Greenback. A positive risk tone further exerts pressure on safe-haven XAU/USD ahead of the US PCE data. The market focus will remain glued to the highly-anticipated FOMC policy meeting next week. (FXStreet)

Silver price is looking to position its feet confidently above the breakout region of the Descending Triangle. Advancing 20-EMA indicates that the short-term bullish trend is intact. A bullish range shift by the RSI (14) will trigger the upside momentum. (FXStreet)

Source: FXStreet, DailyFX

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