Market Update - 14 April 2023

USD/CHF drifts lower for the fourth straight day amid sustained USD selling bias. Expectations for an imminent Fed rate-hike-pause drag the USD to a one-year low. Looming recession risks benefit the safe-haven CHF and contribute to the downfall. (FXStreet)

EUR/USD is looking to capture the critical resistance of 1.1100 as the risk-on mood strengthens. Federal Reserve is expected to reconsider further rate hikes amid softening US CPI and PPI and easing labor market. European Central Bank is divided over the pace of policy-hiking to arrest core inflation. EUR/USD is eyeing a seventh consecutive bullish weekly closing amid the declining US Dollar Index. (FXStreet)

The index deflates below the 100.80 mark, or new YTD lows. Markets continue to price in a potential pause by the Fed. Retail Sales, Industrial Production, Consumer Sentiment next on tap. The greenback extends the weekly decline and prints new yearly lows in the 100.80/75 band when tracked by the USD Index (DXY) at the end of the week. (FXStreet)

USD/JPY remains on the defensive amid the prevalent selling bias around the USD. Expectations for an imminent Fed rate-hike pause drag the USD to a one-year low. The BoJ’s dovish outlook holds back bears from placing fresh bets and lends support. (FXStreet)

USD/CAD holds lower grounds at two-month bottom, down for the fifth consecutive day. WTI crude oil struggles to recover amid sluggish data, mixed OPEC update. US Dollar Index drops to the lowest levels since late April 2022 as Fed hawks retreats amid easing inflation. US Retail Sales, Michigan CSI and UoM 5-year Consumer Inflation Expectations eyed for fresh impulse. (FXStreet)

GBP/USD seesaws near the highest levels since June 2022 during four-day uptrend. Clear upside break of eight-day-old horizontal resistance, now support, hints at further advances of the Cable pair. Multiple key FE levels, mid-2022 peak can challenge buyer inside megaphone trend-widening pattern. (FXStreet)

AUD/USD is consolidating below 0.6800 as investors await US Retail Sales for further guidance. The USD Index has printed a fresh 11-month low at 100.78 amid rising fears of recession in the US economy. Upbeat Australian Employment data has renewed fears of more rate hikes from the RBA. (FXStreet)

GBP/JPY is juggling around 166.00 amid a restrictive upside on hopes that UK inflation will start declining sooner. Higher rates from the BoE are forcing firms to postpone their expansion plans. BoJ Ueda is advocating the continuation of an already decade-long ultra-loose monetary policy to sustain wage growth. (FXStreet)

EUR/GBP is looking to recapture 0.8840 as the ECB is also considering the option of a 50 bps rate hike ahead. Eurozone core inflation is extremely persistent due to tight labor market conditions. The Pound Sterling is facing pressure as BoE policymakers are confident that inflation will start decelerating quickly. (FXStreet)

USD/CNH takes offers to renew multi-day low during three-day downtrend. Clear break of 2.5-month-long ascending trend line direct offshore Chinese Yuan buyers towards 6.8100. Recovery remains elusive below 100-DMA; previous monthly high is the key upside hurdle. (FXStreet)

USD/MXN retreats from intraday high, snaps two-day losing streak. Three-week-old descending trend line restricts immediate upside ahead of the key SMAs. RSI pokes short-term resistance line during eight-day-long bearish trend, suggesting return of upside momentum. Rising support line from early March, YTD low joins downbeat RSI to challenge Mexican Peso buyers. (FXStreet)

USD/INR remains pressured at 11-week low, down for the third consecutive day. Clear downside break of ascending trend line from late January, bearish MACD signals favor Indian Rupee (INR) buyers. Convergence of 200-DMA, five-month-old rising support line restricts immediate downside of USD/INR. Indian Rupee sellers remain off the table below 82.10. (FXStreet)

WTI remains pressured after reversing from five-month high the previous day. Convergence of previous resistance line from December 2022, 200-EMA restricts immediate declines. 61.8% Fibonacci retracement, 100-EMA act as additional downside filter. Bulls need daily closing beyond $84.80 to restore confidence. (FXStreet)

Natural Gas price picks up bids to refresh intraday high, snaps two-day downtrend. Higher low of XNG/USD price contradicts with lower lows of RSI to suggest further recovery. Immediate resistance line holds the key to further upside, weekly top prods Natural Gas buyers. XNG/USD bears need validation from $2.12 to retake control. (FXStreet)

Gold price remains firmer at 13-month high, braces for two-week uptrend. Easy United States inflation, Fed policy pivot talks weigh on US Dollar and propel XAU/USD. US Retail Sales, Michigan Consumer Sentiment Index and Consumer Inflation Expectations eyed for immediate Gold price directions. (FXStreet)

Silver pulls back from a fresh one-year high touched earlier this Friday amid overbought RSI. The technical setup still favours bulls and supports prospects for a further appreciating move. Any meaningful corrective slide might still be seen as a buying opportunity and remain limited. (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.