Market Update - 11 April 2023

EUR/USD is looking to extend its upside journey towards 1.0900 amid a cheerful market mood. Investors have digested the expectations of one more 25 basis points (bps) rate hike from the Fed. Higher rates by the Fed and tight credit conditions by US banks have forced investors to downgrade growth for S&P500. (FXStreet)

USD/JPY retreats from over a three-week high touched on Monday amid a modest USD weakness. A generally positive risk tone could undermine the safe-haven JPY and lend support to the major. The divergent Fed-BoJ policy outlook also warrants caution before placing aggressive bearish bets. (FXStreet)

AUD/USD recovers from the lowest levels in 12 days to snap five-day downtrend. Convergence of 10-DMA, previous support line from early March restricts immediate upside. Aussie bulls need validation from 0.6800 to keep the reins. (FXStreet)

GBP/USD currently trades around 1.2435, just under 0.5% higher on the session. The pair is near an old line of resistance around 1.2450, a level that has held the pair at bay over the past few months. All three moving averages are positive and supportive of a move higher. If cable can break through resistance, then 1.2525 comes into play before a multi-month high at 1.2667 comes into view. (DailyFX)

The U.S. dollar, as measured by the DXY index, started the week on a positive note, rallying more than 0.65% to 102.75, bolstered by risk-off sentiment and higher U.S. treasury rates in a session characterized by thinner liquidity and lower trading volume, with European markets closed for the Easter Holiday. (DailyFX)

NZD/USD struggles to capitalize on its modest intraday gains, though the downside seems limited. The softer Chinese inflation figures fuel concerns about slowing growth and weighs on the major. A positive risk tone undermines the safe-haven USD and lends support to the risk-sensitive Kiwi. (FXStreet)

Oil prices haven’t been able to extend gains after the initial jump following the surprise announcement of the output cut by OPEC+ producers. There could be a couple of reasons for the wait-and-watch mode. (DailyFX)

Natural gas prices are holding above strong support, raising the prospect of at least some consolidation / minor rebound as the downward momentum is fading. Market diversity as measured by fractal dimensions appears to be low as natural gas retests multi-month lows. (DailyFX)

Gold prices (XAU/USD) retreated on Monday, falling more than 1.0% and threatening to break below the psychological $2,000 level, undermined by broad-based U.S. dollar strength and increased odds of additional Fed tightening following remarkably strong U.S. labor market data released last Friday. (DailyFX)

Bitcoin’s jump to a nine-month high is a sign that the medium-term downtrend in cryptocurrencies is changing. While the trend on the daily charts continues to be bullish, some short-term consolidation can’t be ruled out. (DailyFX)

Source: FXStreet, DailyFX

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