Market Update - 07 March 2023

EUR/USD is approaching 1.0700 as investors have shrugged off US recession fears. Federal Reserve’s Powell might wait for February’s data before delivering guidance on interest rates. European Central Bank’s Centeno sounds less hawkish despite renewed fears of high inflation in the Eurozone. EUR/USD is aiming higher amid a bullish momentum as the RSI (14) has shifted into the bullish range. (FXStreet)

USD/JPY is oscillating around 136.00, downside looks favored amid the risk-on mood. An upbeat market mood has pushed the 10-year US Treasury yields below 3.96%. The BoJ is expected to remain dovish as current inflationary pressures in Japan are the outcome of international forces. (FXStreet)

GBP/USD attracts some intraday selling following an early move up to a four-day peak. Recession fears, hawkish Fed expectations act as a tailwind for the USD and cap gains. Traders now keenly await Fed Chair Powell’s testimony before placing directional bets. (FXStreet)

AUD/USD has failed to capitalize on the hawkish RBA policy. The RBA continued the 25 bps rate hike spree and pushed the OCR to 3.60%. Australia’s monthly CPI indicator suggests that inflation has peaked. (FXStreet)

USD/CAD extends its sideways consolidative price moves through the early European session. Bullish Oil prices underpin the Loonie and act as a headwind amid a modest USD weakness. The downside remains cushioned ahead of Fed Chair Jerome Powell’s semi-annual testimony. (FXStreet)

The USD Index (DXY), which gauges the greenback vs. a basket of its main rivals, exchanges gains with losses around 104.30 ahead of the opening bell in the old continent on turnaround Tuesday. (FXStreet)

USD/CNH eases from a one-week high to pare the previous day’s gain. 100-DMA, support-turned-resistance from early February appears a tough nut to crack for bulls. Looming bear cross on MACD, steady RSI (14) hints at further grinding towards the previous resistance line. (FXStreet)

NZD/USD regains positive traction on Tuesday, though any meaningful upside still seems elusive. A generally positive risk tone undermines the safe-haven USD and benefits the risk-sensitive Kiwi. The market focus remains on Fed Chair Jerome Powell’s semi-annual congressional testimony. (FXStreet)

USD/MXN takes offers to reverse the week-start corrective bounce off multi-month low. Bearish MACD signals, sustained trading below 50-DMA keep sellers hopeful. Convergence of previous support line from November 2022, one-month-old descending trend line appears crucial hurdle towards the north. (FXStreet)

USD/INR fades bounce off five-week low but struggles to gain momentum ahead of top-tier event. Cautious optimism, sluggish yield and mildly bid Oil price add to the Indian Rupee pair trader’s indecision. Fed Chair Jerome Powell’s Testimony eyed amid fears of dovish guidance versus mostly firmer yields. (FXStreet)

AUD/NZD takes offers to refresh intraday low as RBA flashes downbeat signals. RBA announces 25 bps rate hikes, as expected, but talks surrounding inflation lures Aussie bears. US-China news, cautious optimism ahead of the top-tier data/events also weigh on the exotic pair. (FXStreet)

AUD/JPY has slipped sharply below 91.30 as RBA continues the 25 bps rate hike spell for the fifth time. RBA Lowe has pushed the OCR to 3.60% to get competitive against stubborn inflation. A continuation of an expansionary monetary policy is expected from the BoJ ahead. (FXStreet)

Prices of the barrel of WTI extended the rebound and reached the key $80.00 mark per barrel on Monday. The continuation of the uptrend was amidst diminishing open interest and volume and suggests that a sustainable move beyond this key resistance area (where coincides February and the so far March highs) is not favoured for the time being. (FXStreet)

Monday’s negative price action in natural gas was on the back of shrinking open interest, which hints at the idea that a deeper decline is not favoured for the time being. The acute build in volume, however, reinforces the current bearish outlook for the commodity. On the upside, the $3.00 mark per MMBtu should offer decent resistance for the time being. (FXStreet)

Gold prices started the week on the back foot and closed below the $1850 mark on Monday. The move was on the back of increasing open interest, which is indicative that further weakness could be waiting for the precious metal in the very near term. Against that, a potential drop and visit to the key $1800 area per ounce troy should remain in store for the time being. (FXStreet)

Silver price retreats towards intraday low, defends previous day’s pullback from one-week high. One-week-old rising wedge bearish chart pattern joins downbeat MACD signals to favor sellers. Previous resistance line from early February lures XAG/USD bears. (FXStreet)

Bitcoin prices (BTC/USD) stabilize after falling below the 20-day MA (moving average). Ethereum (ETH/USD) finds temporary support above $1,550 as bulls’ eye $1,600. Silvergate becomes the latest cryptocurrency firm to land in troubled waters. The digital-asset based bank falls victim to FTX contagion after announcing solvency concerns. (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.