Market Update - 24 February 2023

EUR/USD registered small losses on Thursday. The pair stays in a consolidation phase at around 1.0600 in the early European session. The data from Germany revealed that the GDP contracted by 0.4% on a quarterly basis in the fourth-quarter, compared to the initial estimate of -0.2%. (FXStreet)

GBP/USD is struggling to keep its feet above 1.2000 as geopolitical tensions amid Russia and Ukraine are escalating. China’s dubious gestures towards the Russia-Ukraine war are dampening the market mood. the shortage of labor and absence of signs of easing labor cost index are clocking for more rates by the BoE. (FXStreet)

USD/JPY is showing a volatility squeeze after some wild moves post-speech from BoJ Governor Nominee Kazuo Ueda. Bank of Japan Ueda considered the current monetary policy as appropriate for achieving the persistent 2% inflation target. Federal Reserve to continue policy tightening spell as upbeat US labor market could propel inflation ahead. USD/JPY is auctioning in a Rising Wedge which indicates a loss in the upside momentum and cements a bearish reversal. (FXStreet)

NZD/USD meets with a fresh supply on Friday and drifts back closer to the monthly low. Bets for more rate hikes by the Fed, recession fears benefit the USD and exert pressure. Investors now look to the US Core PCE Price Index before placing fresh directional bets. (FXStreet)

AUD/USD remains depressed near its lowest level since January amid a bullish USD. Bets for additional rate hikes by the Fed, recession fears continue to benefit the buck. Traders now look to the Fed’s preferred inflation gauge for a fresh directional impetus. (FXStreet)

USD/CAD picks up bids to pare day-start losses, reverses the previous day’s pullback from seven-week high. Oil price cheers hopes of economic recovery, geopolitical tension amid sluggish session. Talks surrounding Fed concerns join mixed moves of bond market to probe Loonie traders. (FXStreet)

USD/CHF bears are coming to the table following three days or higher closes. The bears eye a break of trendline support for a move into Wednesday's and Thursday's lows. USD/CHF is trading between key support and resistance on top of the prior week's highs of 0.9331, potentially trapping breakout traders for a move to the downside with Wednesday's highs near 0.9320 and Thursday's low near 0.9290 eyed. (FXStreet)

EUR/GBP retreats from intraday high, snaps two-day rebound from monthly low. One-week-old resistance line, key Fibonacci retracement level challenge immediate upside. 0.8840 appears a tough nut to crack for the EUR/GBP bulls. Multiple levels surrounding 0.8760 can probe bears afterward. (FXStreet)

EUR/JPY has shown wild gyrations amid commentary from BoJ Governor Nominee Ueda. The discussions over widening Yield conversion control were absent in Ueda’speech. BoJ Ueda is of the view that rising Japan’s inflation is backed by higher import prices. (FXStreet)

GBP/JPY attracts some dip-buying on Friday and snaps a two-day losing streak. BoJ Governor candidate Ueda's dovish remarks weigh on JPY and lend support. Bets for additional BoE rate hikes underpin the GBP and also act as a tailwind. (FXStreet)

USD/INR picks up bids to pare the biggest daily loss in a month. Firmer Oil price, hawkish Fed bets weigh on Indian Rupee. US Core PCE Price Index eyed for clear directions on US inflation conditions and Fed’s next move. (FXStreet)

USD/MXN is oscillating in a narrow range below 18.40 ahead of US PCE Inflation. S&P500 futures have recovered their entire morning losses, portraying a rebound in the risk-appetite theme. USD/MXN is auctioning in a Descending Triangle that indicates a sheer contraction in volatility. (FXStreet)

On the daily chart below, natural gas finds itself revisiting the 100% Fibonacci extension level at 2.326. This was after prices established a new low at 1.967 before turning higher. Broadly speaking, a bearish Head & Shoulders chart formation remains in play, offering a downward technical bias towards the 2020 low at 1.44. Immediate resistance is at 2.326. Breaking higher exposes the 20-day Simple Moving Average (SMA). The latter is helping maintain the downward focus and could play out as key resistance. Extending higher exposes the May 2021 low at 2.832. (DailyFX)

WTI picks up bids to extend previous day’s rebound from three-week low. Confirmation of bullish chart pattern, upbeat MACD signals favor Oil buyers. Convergence of 50-SMA, 100-SMA appears short-term key upside hurdle. (FXStreet)

The index maintains the positive bias well past 104.00. US yields recede further ahead of key US data. US inflation tracked by the PCE takes centre stage. The greenback, in terms of the USD Index (DXY), looks to extend the weekly advance well north of the 104.00 barrier at the end of the week. (FXStreet)

Gold price remains bearish despite improving market mood. US Dollar stays dominant after US Gross Domestic Product growth disappointed on the second estimate for Q4 2022. PCE disinflation should continue, but any surprise could have a notable impact on Gold. (FXStreet)

Silver is seen consolidating this week’s downfall back closer to the YTD low. The setup favours bearish traders and supports prospects for further losses. A sustained move beyond the $22.00 barrier could negate the bearish bias. (FXStreet)

Bitcoin declined for the third straight day on Thursday and continued to edge lower early Friday. BTC/USD was last seen trading at around $23,900. Ethereum registered small losses on Thursday but lost its recovery momentum near $1,700. In the European morning on Friday, ETH/USD trades flat on the day at $1,650. (FXStreet)

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.