Market Update - 17 March 2023

USD/CAD has slipped further below 1.3700 amid an extended correction in the USD Index. Oil price has scaled above $69.00 amid the revised 2023 China GDP forecast to 6.0% from 5.5% previously estimated. Going forward, Canada’s Inflation data will be of utmost importance. (FXStreet)

The index adds to Thursday’s decline and puts 104.00 to the test. Persistent risk-on mood keeps weighing on the dollar. Industrial Production, Consumer Sentiment take centre stage in the docket. The selling pressure keeps dominating the sentiment around the greenback and forces the USD Index (DXY) to confront the key support at 104.00 at the end of the week. (FXStreet)

EUR/USD has extended its recovery above 1.0640 as the USD Index is losing steam further. Federal Reserve might remain steady on interest rates after discounting lower inflation in February and fresh banking instability. European Central Bank went for a third consecutive 50 bps interest rate hike to tame rampant inflation despite Credit Suisse’s debacle. EUR/USD has scaled above the 50% Fibonacci retracement, which cements a bullish reversal. (FXStreet)

GBP/JPY prints mild losses while reversing the previous day’s bounce off one-month low. Bearish MACD signals, repeated failures to cross 200-EMA keep sellers hopeful. 11-week-old ascending trend channel restricts short-term downside, suggests gradual run-up to refresh YTD top. (FXStreet)

EUR/GBP prints three-day losing streak, justifies downside break of 0.8770-75 confluence. Bearish MACD signals add strength to downside bias. Recovery moves need validation from 0.8815 to convince bulls. (FXStreet)

GBP/USD picks up bids during two-day uptrend, eyes third consecutive weekly gain. Cabl buyers cheer Brexit optimism, no more labor strikes in the UK and the US Dollar’s retreat. Fears of downbeat UK housing market reaction to the BoE’s rate hike cap the prices ahead of the key central bank events. (FXStreet)

EUR/JPY is facing barricades in extending its recovery above 142.00. The 20-period EMA at 141.50 is providing a cushion to the Euro bulls. An oscillation in the 40.00-60.00 range by the RSI (14) indicates a consolidation for now. (FXStreet)

NZD/USD benefits from revived risk appetite and a softer US Dollar. Central banks to stay on rate hiking path despite liquidity crisis. Questions remain on future bank support and policy implications. (FXStreet)

AUD/USD has sensed a stellar buying interest amid the declining USD Index. A bull cross, delivered by the 20-and 50-period EMAs at 0.6648 indicates more upside ahead. The RS) (14) has shifted into the bullish range, which indicates that the upside momentum has been triggered. (FXStreet)

USD/JPY in search for direction bias amid steady US Treasury yield. ECB rate hike impacts global yield complexes; central banks hold steady amid liquidity crunch. Fed's March FOMC meeting unlikely to see pivotal shift in rate hiking cycle. (FXStreet)

USD/CNH is oscillating around 6.9000 as investors await PBoC policy for fresh impetus. A dovish stance is expected on the LPR by the PBoC as the economy is aiming for a recovery. The appeal for the USD Index has been trimmed as investors are dubious about the upcoming Fed's policy. (FXStreet)

USD/INR extends the previous day’s pullback from three-week high. US Treasury bond yields weigh on greenback amid receding fears of financial crisis. Mixed sentiment, light calendar and pre-Fed anxiety are extra catalysts that allow Indian Rupee to lick its wounds. (FXStreet)

USD/MXN reverses from 100-HMA hurdle to pare intraday gains. Bearish chart formation needs confirmation from 18.55, downbeat oscillators keep sellers hopeful. 200-HMA acts as additional downside filter, bulls need validation from February’s top to tighten the grips. (FXStreet)

WTI crude oil picks up bids to rebound from the lowest levels since December 2021. Bullish Doji candlestick, US Dollar pullback joins hopes of more energy demand from China to favor Oil price recovery. US President Biden’s readiness for additional SPR release, mixed sentiment probe Oil buyers. (FXStreet)

Gold price grinds higher amid US Dollar pullback, sluggish sentiment. Sustained trading beyond $1,920 and $1,925 supports keep XAU/USD buyers hopeful. Receding fears of banking crisis, lack of major data/events strengthen bullish bias. Second-tier US data, bond market moves eyed for clear directions as Fed’s 0.25% rate hike seems given. (FXStreet)

Silver price bounces off intraday low, eyes the biggest weekly gain since late 2022. Strong yields probe XAG/USD bulls but the metal’s safe-haven status keep Silver price firmer. Market’s indecision about the next week’s Fed moves, lack of major data/events restrict immediate moves of the Silver price. (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.