Market Update - 20 April 2023

GBP/USD struggles to defend latest gains, prints mild losses while snapping two-day uptrend. Clear downside break of one-month-old previous support line joins sluggish MACD signals, steady RSI to tease sellers. 100-EMA, ascending support line from early April challenge Cable bears.  (FXStreet)

The index gives away some gains below the 102.00 mark. Global markets remain within a consolidative phase so far. Weekly Claims, Philly Fed Index next of note in the docket. The greenback, when tracked by the USD Index (DXY), trades slightly on the defensive below the 102.-00 region on Thursday. (FXStreet)

EUR/GBP has crossed 0.8800 after a gradual recovery, however, the downside bias has not faded yet. The double-digit UK inflation has cemented the need for one more rate hike from the BoE. The street is anticipating that ECB Lagarde will slow down the pace of the rate hike to 25 bps.  (FXStreet)

GBP/JPY retreats from four-month high, prints the first daily loss in five. Failures to stay beyond 168.00 joins bearish MACD signals to lure GBP/JPY bears. Resistance-turned-support from early April, steady RSI prods pair sellers. Upside break of the immediate trend line hurdle could aim for the late 2022 peak. (FXStreet)

NZD/USD remains pressured around five-week low, keeps NZ inflation-induced fall. New Zealand Q1 CPI eases to the lowest level in two years with 6.7% QoQ figures. Downside break of one-month-old horizontal support, bearish MACD signals also keep Kiwi pair sellers hopeful. Any recovery remains elusive below 200-SMA, 0.6170 guards immediate upside. (FXStreet)

EUR/USD is making efforts for defending its 1.0950 support as USD Index has shown recovery. Loans and advances to US businesses and consumers have dropped due to tight credit conditions by US banks. Citi Group is expecting a recession in the US economy in the fourth quarter. (FXStreet)

AUD/USD takes offers to refresh intraday low, printing minor losses during two-day downtrend.RBA’s Lowe fails to inspire markets from central bank review, PBOC holds benchmark rate at 3.65% as expected. Australia’s NAB Business Confidence for Q1 plummets to -4 versus -1 prior. Market sentiment remains fragile amid rate hikes, geopolitical fears and weigh on Aussie pair. (FXStreet)

USD/CAD sticks to mild gains at the highest levels in a week. Oil price bears the burden of recession woes amid fears of higher interest rates. Downbeat prints of second-tier Canada data, unimpressive BoC talks propel Loonie prices. Risk catalysts, comments from BoC, Fed policymakers eyed for clear directions. (FXStreet)

USD/CNH has surpassed the crucial resistance of 6.9000 as PBoC has kept the interest rate policy stable. There was no urgency for the PBoC to ease policy further as the Chinese economy is well on track for economic recovery. The Fed is expected to raise rates by 25bps and may hold rates steady for 2023. (FXStreet)

USD/JPY eases from six-week high amid recently downbeat yields. Upbeat economic analysis from BoJ, Fed troubles Yen pair buyers amid sluggish markets. Fears of higher rates, recession keep bulls hopeful ahead of second-tier US data, Japan inflation. (FXStreet)

USD/MXN regains upside momentum after probing bulls the previous day. Sustained trading above six-week-old ascending support line, looming bull cross on MACD favor buyers. 21-DMA holds the key to further run-up towards monthly top, bearish trend remain intact below 18.90. Downside break of 18.00 could trigger fresh fall targeting YTD low. (FXStreet)

USD/INR is facing barricades in extending its rally above 82.30. Investors are anticipating that Fed’s battle against stubborn US inflation will continue as it is extremely far from desired levels. The Indian Rupee has failed to capitalize on declining oil prices. (FXStreet)

WTI crude oil remains pressured at the lowest levels in 13 days, prints four-day downtrend. 100-EMA, one-month-old ascending support line challenge energy bears. Looming bear cross on MACD, RSI retreat keeps Oil sellers hopeful. Oil price uptrend remains elusive below $83.30-40 resistance zone. (FXStreet)

Natural Gas licks its wounds after posting the biggest daily loss in a month. Downside break of 200-SMA, three-week-old ascending trend line joins bearish MACD signals to favor XNG/USD sellers. Buyers need validation from six-week-old descending resistance line to retake control. (FXStreet)

Gold price fades upside momentum within one-month-old bullish channel, pares losses of late. Geopolitical concerns about China, Russia weigh on XAU/USD price. Inflation woes propel United States Treasury bond yields, US Dollar and provide headwind to Gold Price. Central bankers, risk catalysts eyed for fresh impetus ahead of Friday’s Purchasing Managers Indexes. (FXStreet)

Silver price snaps two-day winning streak, renews intraday low of late. The Silver Institute reports the record supply deficit amid new peak of global XAG/USD demand in 2022. Inflation, rate hike fears join geopolitical concerns to prod the Silver price. (FXStreet)

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Source: FXStreet, DailyFX

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