Market Update - 27 February 2023

USD/JPY eases from a fresh YTD peak touched on Monday amid a modest USD downtick. The Fed-BoJ policy divergence acts as a tailwind for the pair and helps limit the downside. Investors now look forward to the US macro data to grab short-term trading opportunities. (FXStreet)

GBP/USD continues to find some support and attracts some buyers near the 200-day SMA. A modest USD pullback from a multi-week high is seen as a key factor acting as a tailwind. Hawkish Fed expectations should help limit the USD losses and cap the upside for the pair. (FXStreet)

The index picks up pace past the 105.00 mark on Monday. US 2-year yields reach new multi-year peaks past 4.80%. Durable Goods Orders, housing data next of note in the docket. The USD Index (DXY), which gauges the greenback vs. a bundle of its main competitors, advances marginally and maintains the multi-session rally well in place for the time being. (FXStreet)

USD/CAD attracts some dip-buying on Monday and draws support from a combination of factors. Sliding Oil prices undermines the Loonie and acts as a tailwind for the pair amid a stronger USD. The fundamental backdrop favours bullish traders and supports prospects for a further move up. (FXStreet)

GBP/JPY takes offers to extend pullback from one-week-old horizontal resistance. Looming bear cross on MACD, RSI retreat add strength to downside bias. 50-SMA restricts immediate downside, bulls need validation from monthly high. (FXStreet)

EUR/USD remains depressed near the seven-week low as bears poke intraday bottom. Upbeat US Treasury bond yields, hawkish Fed bets contrast with hopes of higher ECB rates to challenge Euro pair sellers. US data, UN Human Rights Council session eyed for intraday directions. (FXStreet)

EUR/GBP is awaiting the outcome of UK-EU discussions over the Brexit deal for fresh impetus. ECB Lagarde confirmed a continuation of the policy tightening spell of 50 bps amid an absence of supportive fiscal policy. The German economy has shrunk by 0.4% in the fourth quarter of 2022 as stick inflation has weighed on households’ spending. (FXStreet)

USD/INR struggles for clear directions after five-week uptrend, grinds higher of late. Hawkish Fed concerns, upbeat US Treasury bond yields underpin US Dollar strength. RBI’s hawkish mood contrasts with fears of easy growth figures to weigh on Indian Rupee. US data, risk catalysts eyed for clear directions past India Q3 GDP. (FXStreet)

USD/MXN retreats from intraday high, fails to extend the previous week’s rebound from the lowest levels since April 2018. US Dollar struggles for clear directions after posting the heaviest run-up since September 2022 amid hawkish Fed concerns. Mixed risk catalysts, sluggish bond markets keep Mexican Peso illiquid ahead of US Durable Goods Orders. (FXStreet)

NZD/USD drops to the lowest levels in three months, grinds near intraday low of late. Downbeat NZ Retail Sales, comments from RBNZ’s Conway keep bears hopeful. US Dollar cheers strong inflation clues, hawkish Fed talks amid upbeat yields. US Durable Goods Orders, risk catalysts eyed for fresh impulse. (FXStreet)

AUD/USD has refreshed its seven-week low at 0.6700 amid geopolitical tensions and rising hawkish Fed bets. The USD Index has refreshed its day’s high above 104.90 and is expected to recapture the 105.00 resistance.A higher-than-projected Australia GDP will accelerate troubles for the RBA. (FXStreet)

WTI prints mild losses to probe the previous rebound from three-week low. Russia’s halt of Oil supplies to Poland joins more Western sanctions on Moscow to highlight geopolitical woes. US SPR woes challenge energy buyers amid hawkish central bank concerns. (FXStreet)

Prices of the natural gas extended the rebound on Friday. However, the move was against the backdrop of shrinking open interest and volume, suggesting that the ongoing bounce could be short-lived. So far, further upside should meet the next hurdle at a Fibo retracement of the December-February drop near the $3.20 mark peer MMBtu. (FXStreet)

Friday’s daily retracement in gold prices was amidst increasing open interest, which is supportive of further decline in the very near term and with the immediate target at the key contention area around $1800 per ounce troy. (FXStreet)

Silver continues losing ground for the fourth straight day and refreshes the YTD low on Monday. Oversold oscillators on the daily chart help the XAG/USD to find support near the 61.8% Fibo. The setup still favours bearish traders and supports prospects for a further depreciating move. (FXStreet)

Bitcoin’s recent retreat appears to be part of the consolidation that started earlier this month. The two-month-long uptrend remains intact. The retreat in recent days in Bitcoin appears to be a consolidation rather than a reversal of the two-month-long uptrend, at least yet. Bitcoin has pulled back from a tough barrier at the August 2022 high of 25200, near the 200-week moving average (now at about 25100) – a possibility highlighted in the previous update. (DailyFX)

Source: FXStreet, DailyFX

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.