Market Update - 28 February 2023

USD/JPY touches a fresh YTD top on Tuesday and is supported by a combination of factors. Hawkish Fed expectations, elevated US bond yields continue to underpin the Greenback. The incoming BoJ Governor Ueda’s dovish remarks weigh on the JPY and remain supportive. Looming recession risks benefit the JPY’s safe-haven status and might cap gains for the pair. (FXStreet)

USD/CAD regains positive traction on Tuesday amid the emergence of fresh USD buying. Hawkish Fed expectations, elevated US bond yields and recession fears benefit the buck. A pickup in Oil prices does little to underpin the Loonie and hinder the intraday move up. (FXStreet)

The index reclaims ground lost following Monday’s decline. US yields maintain the February rally well in place. Consumer Confidence, housing data, trade balance next on tap. The greenback, in terms of the USD Index (DXY), leaves behind part of Monday’s retracement and revisits the 104.80 region on Tuesday. (FXStreet)

GBP/JPY holds lower ground near the intraday bottom, snaps two-day uptrend. Doubts over Brexit deal’s capacity to gain British Parliamentary approval probe the earlier hopes of overcoming month-long political deadlock. Yields grind higher amid month-end positioning mixed sentiment. Unimpressive Japan data, incoming BoJ policymakers’ defense of easy money policy keep buyers hopeful. (FXStreet)

EUR/USD has refreshed its day low at 1.0582 as a recovery in the risk appetite theme has faded. Federal Reserve could push interest rates to 6%in the battle against stubborn inflation. European Central Bank looks set to deliver one more 50 bps interest rate hike in March. EUR/USD has sensed selling pressure while attempting to deliver a breakout of the downward-sloping trendline from 1.0805. (FXStreet)

GBP/USD takes offers to refresh intraday low, fades week-start run-up. DUP raises doubts on UK PM-inspired Brexit deal on grounds of practicality, NI’s place in the UK. Former British PM Boris Johnson also pushed DUP to check new deal thoroughly. Hawkish Fed bets, mixed concerns keep Cable bears hopeful despite sluggish end of February. (FXStreet)

AUD/USD struggles to capitalize on its modest uptick amid renewed USD buying. Hawkish Fed expectations, elevated US bond yields help revive the USD demand. Recession fears offset the upbeat Australian Retail Sales and act as a headwind. (FXStreet)

NZD/USD is exposed to 0.6130 after retreating from 0.6180 as the risk-on mood has faded. The 10-year US Treasury yields have jumped above 3.93% amid rising fears of more rates by the Fed. Investors are expecting an increase in the Caixin Manufacturing PMI to 50.2. (FXStreet)

USD/INR has shifted its range below 82.70 amid an overnight correction in the USD Index. The Indian Rupee will display a power-pack action after the release of the Q3 GDP data. S&P500 futures have further added gains after a modest positive Monday, portraying ease in the risk-off mood. (FXStreet)

AUD/USD is facing hurdles in stretching its recovery above 0.6750 despite upbeat Australian Retail Sales data. The Aussie has formed a Hammer candlestick pattern near the crucial support plotted near 0.6710. A pullback move to near five-period EMA cannot be ruled out. (FXStreet)

Prices of the WTI started the week on the back foot, although the daily decline was amidst declining open interest and volume, which warns against the continuation of the retracement and favours further recovery instead. That said, the immediate target for the commodity emerges at the interim 55-day SMA, today near $77.50. (FXStreet)

Prices of the natural gas extended further the rebound on Monday. The bullish move, however, was on the back of shrinking open interest, which removes strength from the current uptrend and opens the door to some corrective decline in the very near term. That said, another retracement to the area of recent lows in the sub-$2.00 mark per MMBtu should not be ruled out for the time being. (FXStreet)

Gold price stays in bearish mode, approaching $1,800 psychological support. US Dollar stays dominant across the board as US macroeconomic data keeps beating expectations. ISM Manufacturing and Services PMI releases headline a mid-tier economic data week. (FXStreet)

Silver price snaps four-day downtrend while bouncing off the lowest levels since early November 2022. Bearish MACD signals, sustained trading below 200-DMA keep sellers hopeful. Multiple hurdles stand tall to challenge XAG/USD buyers. (FXStreet)

Source: FXStreet, DailyFX

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