Market Update - 09 February 2023

EUR/GBP has scaled above 0.8880 after a recovery move as bets for further ECB policy tightening is accelerating. ECB Knot believes that Eurozone headline inflation has peaked now amid falling energy prices. The German HICP is expected to increase to a double-digit figure on an annual basis. (FXStreet)

NZD/USD gains strong positive traction on Thursday and rallies to the top end of the weekly range. A positive risk tone undermines the safe-haven USD and seems to benefit the risk-sensitive Kiwi. The prospects for additional rate hikes by the Fed could limit the USD losses and cap the major. (FXStreet)

AUD/USD stays depressed after reversing from weekly high the previous day. Fed policymakers, US diplomats highlight inflation fears to justify higher rates. Easing US-China fears contrasts with Australia’s drive to remove Chinese cameras from government offices and probe sentiment. US Dollar grinds higher even as yields remain pressured. (FXStreet)

EUR/USD is aiming to stretch upside to near 1.0740 ahead of German Inflation data. Federal Reserve is expected to hike interest rates further as the upbeat labor market might propel consumer spending. Higher German Inflation data will bolster the case of bumper interest rate hikes by the European Central Bank ahead. EUR/USD is auctioning in an Ascending Triangle that indicates a volatility contraction. (FXStreet)

USD/JPY reverses the previous day’s recovery from weekly low, sidelined of late. Firmer RSI, sustained break of weekly resistance line keeps Yen buyer hopeful. Bulls need validation from 131.70 to keep the reins. (FXStreet)

USD/CAD picks up bids to refresh intraday high and approach three-week-old resistance line. Hawkish Fed concerns underpin US Dollar rebound, weigh on Oil price. BoC’s Macklem contrasts with hawkish Fed comments and advocates a pause in rate hike trajectory. (FXStreet)

USD/JPY has strongly surpassed 131.50 amid fresh concerns about further interest rate hike from the Fed. Fed Waller considers the US labor market extremely robust and believes that it could fuel consumer spending ahead. Investors are getting anxious ahead of the release of the contenders' list for BoJ Kuroda’s successor. (FXStreet)

USD/CHF prints three-day downtrend to approach short-term key support line. Impending bear cross between 50-HMA and 100-HMA keep sellers hopeful amid mostly steady RSI. Bullish MACD signals, one-week-old ascending trend line hold the gate for bear’s entry. (FXStreet)

GBP/USD grinds higher around intraday top during three-day uptrend. Broad US Dollar weakness, cautious optimism underpin recovery moves despite mixed UK fundamentals. British housing market flashes red signals, workers’ strikes are on the top. BOE Governor Bailey’s testimony, preliminary readings for UK Q4 GDP eyed amid a light calendar for Thursday. (FXStreet)

AUD/JPY bulls are in play and we could see an advance on 91.70 in the coming sessions/days ahead. The 61.8% Fibonacci near 93.00 is key on the upside. (FXStreet)

USD/INR remains pressured for the second consecutive day amid broad US Dollar weakness. RBI rejects dovish hike concerns even as matching market forecasts of 0.25% rate hike. Cautious optimism in Asia, downbeat US Treasury bond yields favor Indian Rupee buyers. (FXStreet)

The index gives away some gains in the low-103.00s. The dollar appears stuck within the weekly range. Usual weekly Initial Claims will be the salient event later in the session. The USD Index (DXY), which tracks the greenback vs. a bundle of its main rival currencies, trades on the defensive in the 103.20 region on Thursday. (FXStreet)

CME Group’s flash data for crude oil futures markets noted traders added around 4.3K contracts to their open interest positions on Wednesday, reversing the previous daily drop and resuming the uptrend at the same time. Volume, instead, kept the erratic performance and shrank by around 201.1K contracts. (FXStreet)

Open interest in natural gas futures markets extended the uptrend and rose by around 5.7K contracts on Wednesday according to preliminary readings from CME Group. On the other hand, volume went down by around 75.6K contracts, partially offsetting the previous sharp daily build. (FXStreet)

Gold price fade the weekly rebound within a bearish chart pattern. Federal Reserve officials, United States Treasury Secretary highlight inflation concerns to defend higher rates and weigh on XAU/USD. Easing fears of US-China tension over the balloon shooting, light calendar probes XAU/USD traders. (FXStreet)

Silver gains positive traction for the second straight day, though lacks follow-through. The technical setup favours bearish traders and supports prospects for further losses. A sustained weakness below the $22.00 mark is needed to confirm a bearish break. (FXStreet)

Source: FXStreet, DailyFX

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