Market Update - 08 March 2023

USD/CHF remains sidelined after posting the biggest daily gains in five weeks. Clear upside break of 100-DMA joins momentum-positive oscillators to favor bulls. Monthly support line adds to the downside filters, 0.9440 holds the key to pair’s run-up towards 200-DMA. (FXStreet)

EUR/USD remains depressed for the second consecutive day amid strong yields, renews three-month low of late. ECB policymakers defend hawkish bias but lack economic support to bolster Euro. Fed Chair Jerome Powell renews calls for 50 bps rate hike and propel yields, US Dollar. Eurozone Retail Sales, US ADP Employment Change act as additional catalysts to watch clear directions. (FXStreet)

The index adds to Tuesday’s strong gains and approaches 106.00. Markets now price in a 50 bps rate hike at the March 22 event. ADP report, Powell’s testimony next on tap in the calendar. The greenback, in terms of the USD Index (DXY), maintains the bid tone well and sound and approaches the 106.00 zone on Wednesday. (FXStreet)

USD/JPY touches a fresh YTD peak on Wednesday amid sustained USD buying interest. Rising bets for a 50 bps Fed rate hike in March, elevated US bond yields boost the USD. The risk-off mood lends some support to the safe-haven JPY and caps gains for the pair. (FXStreet)

GBP/USD enters a bearish consolidation phase and oscillates in a range around the YTD low. Bets for more aggressive Fed rate hikes underpin the USD and act as a headwind for the pair. Recession risks favour the USD bulls and support prospects for additional losses for the major. (FXStreet)

NZD/USD languishes near its lowest level since November amid sustained USD buying. The USD remains pinned near a multi-month top amid bets for aggressive Fed rate hikes. The prevalent risk-off environment further acts as a headwind for the risk-sensitive Kiwi. (FXStreet)

AUD/USD picks up bids to pare the biggest daily loss in a month. Short-term support line joins oversold RSI (14) to trigger corrective rebound. Previous support line from February, 50-SMA restrict recovery moves. Multiple levels to prod the Aussie pair bears around 0.6540-20 region. (FXStreet)

USD/MXN struggles to extend two-day rebound from multi-month low, sidelined of late. Failure to cross 50-EMA, one-month-old falling trend line recalls bears. One-week-long horizontal support area can restrict immediate downside. (FXStreet)

USD/CAD has printed a fresh four-month high at 1.3774 as the risk-aversion theme has strengthened further. Federal Reserve Powell has confirmed that the risk of persistent inflation is real and a higher terminal rate is expected than prior. Bank of Canada might keep interest rates steady as announced earlier. USD/CAD is running higher with sheer momentum considering the bullish message from indicators and oscillators. (FXStreet)

USD/INR has climbed to near 82.30 amid a strengthening risk-off mood. The demand for US government bonds has dropped dramatically, which has pushed the 10-year US Treasury yields above 4.0%. Fed’s Powell believes that the terminal rate is likely to be higher than earlier expected. (FXStreet)

EUR/JPY has sensed selling pressure around 145.00 amid rising bets for the expansion of JGBs’s yields cap. BoJ Ueda has already conveyed that Japanese inflation is coming from international forces and is not growing domestically. A recovery in German Retail Sales might propel inflationary pressures. (FXStreet)

Prices of the barrel of the WTI dropped markedly on Tuesday amidst increasing open interest and volume, suggesting that extra decline appears on the cards in the very near term. That said, a probable retracement to the area of 2023 lows near $72.00 remains on the table for the time being. (FXStreet)

Tuesday’s uptick in prices of the natural gas was accompanied by rising open interest and a marked drop in volume. Against that, the commodity could embark on a consolidative phase at the time when appears supported by the $2.50 region per MMbtu. (FXStreet)

Tuesday’s pronounced sell-off in gold prices was amidst increasing open interest and volume and opened the door to a deeper drop to, initially, the key $1800 zone per ounce troy, an area reinforced by the 100-day SMA. The loos of this zone could pave the way for a decline to the 200-day SMA, today at $1775. (FXStreet)

Silver price takes offers to refresh multi-day low during three-day downtrend. Clear break of six-month-old support line, the key Fibonacci retracement level joins bearish MACD signals to favor XAG/USD sellers. 200-DMA, monthly resistance line add to the upside filters. (FXStreet)

Source: FXStreet, DailyFX

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