Market Update - 08 February 2023

EUR/USD steadies during the first positive day in five, mildly bid of late. US President Biden tries to convince markets of American competitiveness versus China. Mixed comments from Fed speakers, retreat in US Treasury bond yields underpins EUR/USD recovery. Comments from central bank officials, risk catalysts eyed amid a light calendar. (FXStreet)

USD/JPY has rebounded after dropping below 131.00 following US Biden’s SOTU commentary. US Biden has proposed taxing billionaires by raising the tax slab of corporate buyback four times. A recovery from USD/JPY indicates that the impact of BoJ’s stealth intervention is fading away. (FXStreet)

NZD/USD is demonstrating a sideways performance despite improving risk appetite. NZ PM Hipkins has announced that minimum wages will increase in line with inflation. US Biden’s commentary to protect US sovereignty from China might trigger US-China tensions again. (FXStreet)

GBP/USD struggles to extend the previous day’s rebound from one-month low, sidelined of late. Oscillators suggest further recovery but death cross on the EMAs and 61.8% Fibonacci retracement level probe bulls. Five-week-old horizontal support area offers extra filters to the south. (FXStreet)

AUD/USD clings to mild gains during two-day rebound from monthly low. Sustained break of 200-EMA joins upbeat oscillators to favor buyers. Two-week-old horizontal resistance area challenges immediate upside while ascending trend line from late December probes bears. (FXStreet)

USD/CAD holds lower ground while defending the previous day’s reversal from 13-day high. US Dollar remains indecisive even as yields retreat, pays little heed to US President Biden’s SOTU amid mixed Fedspeak. BoC’s Macklem hints at a pause in rate hikes but failed to impress pair buyers. Risk catalysts could entertain Loonie traders ahead of Friday’s key jobs report from Canada. (FXStreet)

EUR/JPY rebounds from short-term key support confluence amid sluggish markets. Unimpressive oscillators, descending trend line from late December challenge buyers. Multiple hurdles to probe bears past 140.40-30 support confluence. (FXStreet)

USD/CHF takes offers to refresh intraday low, down for the second consecutive day. Fed Chair Powell’s hesitance in praising strong US NFP suggests no more than two rate hikes which are already known. Mixed signals surrounding US-China tussles, pullback in yields underpin bearish bias. US President Joe Biden’s SOTU eyed for fresh impulse. (FXStreet)

GBP/JPY has witnessed selling pressure after a less-confident pullback to near 158.00. The BoJ made a stealth intervention to cushion the Japanese Yen. UK NIESR has cut its GDP forecasts and sees households in severe financial pain due to the higher cost of living. (FXStreet)

The index treads water around 103.30 on Wednesday. Markets appear biased towards the risk complex early in Europe. Weekly Mortgage Applications, Fedspeak next on tap in the docket. Price action around the greenback appears somewhat inconclusive in the low-103.00s when measured by the USD Index (DXY) on Wednesday. (FXStreet)

CME Group’s flash data for crude oil futures markets noted traders scaled back their open interest positions by around 6.2K contracts on Tuesday for the first time since January 19. On the other hand, volume remained choppy and went up by around 183.5K contracts. (FXStreet)

Considering advanced figures from CME Group for natural gas futures markets, open interest remained on the rise on Tuesday, this time by around 8.8K contracts. Volume followed suit and increased by around 260.2K contracts after three consecutive daily pullbacks. (FXStreet)

Gold price is aiming to recapture $1,880.00 as the risk appetite is improving. Investors have shrugged-off uncertainty from Powell’s speech and US Biden’s SOTU meeting. The Fed might continue keeping rates higher for a longer period as the entire disinflationary process seems complicated. (FXStreet)

Silver picks up bids to refresh intraday high, bounces off two-month low. 100-EMA, bearish MACD signals challenge XAG/USD buyers around multi-day low. Convergence of 200-EMA, 38.2% Fibonacci retracement level puts a floor under the Silver price. (FXStreet)

Source: FXStreet, DailyFX

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