Market Update - 17 February  2023

GBP/USD continues losing round for the third straight day and slides below the 200-day SMA. Expectations that the BoE’s rate-hiking cycle is nearing the end continue to weigh on the GBP. Bets for additional rate hikes by the Fed boost the USD and contribute to the ongoing decline. (FXStreet)

EUR/USD drops to multi-week lows in the 1.0630/25 band. The dollar remains strong well north of the 104.00 barrier. CB Leading Index and Fed’s Barking come next in the US docket. The bearish sentiment remains well and sound around the European currency and motivates EUR/USD to slip back to the 1.0630 region for the first time since early January. (FXStreet)

USD/JPY catches fresh bids on Friday and challenges the YTD top amid sustained USD buying. Hawkish Fed expectations push the US bond yields higher and continue to underpin the buck. Recession fears, hopes for a hawkish BoJ shift could benefit the JPY and cap any further gains. (FXStreet)

USD/CAD spikes to its highest level since January and is supported by a combination of factors. Declining Oil prices undermines the Loonie and acts as a tailwind amid sustained USD buying. A sustained move beyond the 1.3500 mark might have already set the stage for further gains. (FXStreet)

NZD/USD stays on the back foot and declines toward 0.6200 on Friday. New Zealand Financial Minister Robertson said earlier in the day there was evidence that inflation has peaked.  (FXStreet)

AUD/USD remains under some selling pressure for the third successive day on Friday. Hawkish Fed expectations, recession fears underpin the buck and weigh on the major. Technical selling below the 50-day SMA further contributes to the ongoing downfall. (FXStreet)

GBP/JPY regains positive traction on Friday and snaps a two-day losing streak. The uncertainty over the BoJ’s policy path weighs on the JPY and lends support. Speculations that the BoE’s rate hiking cycle is nearing the end caps the upside. (FXStreet)

EUR/GBP gains positive traction for the third straight day and climbs to over a one-week high. The upbeat UK Retail Sales for January fail to impress the GBP bulls or provide any impetus. Bets for additional jumbo rate hikes by the ECB support prospects for further near-term gains. (FXStreet)

USD/INR clings to mild gains during the first positive daily performance in three. Upbeat US data, hawkish Fed talks propel Treasury bond yields and the US Dollar. Sluggish Oil price, mixed sentiment in Asia fail to help Indian Rupee in extending previous gains. Light calendar ahead of next week’s FOMC Minutes can keep buyers hopeful. (FXStreet) 

The index extends the advance past the 104.00 barrier. US yields climb to fresh highs following data, hawkish Fedspeak. Fed’s Barkin, CB Leading Index next on tap in the docket. The greenback pushes higher and prints fresh 6-week tops north of the 104.00 hurdle when gauged by the USD Index (DXY) at the end of the week. (FXStreet)

Although XAU/USD managed to close flat on Thursday, it came in under renewed bearish pressure amid rising US T-bond yields early Friday. Gold price was last seen losing more than 0.5% on the day at $1,825. (FXStreet)

Silver price refreshes 11-week low during five-day losing streak. 100-DMA breakdown, bearish MACD signals favor sellers around multi-day low. Oversold RSI hints at corrective bounce, highlights 200-DMA, $20.00 as key supports. Silver price (XAG/USD) holds lower ground at the 2.5-month bottom surrounding $21.45 amid the early hours of Friday morning in Europe. (FXStreet)

Natural Gas: Extra losses target the $2.00 mark. Prices of natural gas accelerated the decline on Thursday amidst rising open interest, which leaves the door open to the continuation of this trend for the time being. A test of the key $2.00 mark per MMBtu seems more an issue of‘when’ rather than ‘if’. (FXStreet)

WTI picks up bids to snap four-day downtrend, stays within one-week-old symmetrical triangle. 50-SMA, bearish MACD signals probe buyers, steady RSI line suggests further grinding of Oil price. Weekly high near $80.75 appers the last defense of Oil sellers. (FXStreet)

Standard Chartered Plc’s chief executive officer said capital inflows into Hong Kong and China means the Hong Kong dollar peg is “extremely well supported.” “Money has flooded into Hong Kong to reengage with the Hong Kong and Chinese equity markets,” Bill Winters said on an earnings call Thursday. “We see no risk to the peg. We see no inclination to adjust the peg or to allow any variation around the peg.” (Bloomberg)

Bitcoin advanced above $25,000 for the first time since August on Thursday but made a sharp U-turn during the American trading hours to post a daily loss of nearly 4%. BTC/USD was last seen moving up and down in a narrow channel above $23,500. Ethereum failed to build on Wednesday's impressive gains on Thursday and closed below $1,700. In the early European morning, ETH/USD is up nearly 1% at around $1,650. (FXStreet)

Source: FXStreet, Bloomberg

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.