Market Update - 08 May 2023

EUR/GBP struggles to capitalize on its modest intraday recovery from a fresh YTD low. The disappointing Eurozone data acts as a headwind for the Euro and caps the cross. Hawkish BoE expectations continue to underpin the GBP and warrant caution for bulls. (FXStreet)

USD/JPY gains positive traction for the second straight day, albeit lacks bullish conviction. A combination of factors undermines the safe-haven JPY and acts as a tailwind for the pair. Dovish Fed expectations weigh on the USD and keep a lid on any further appreciating move. (FXStreet)

EUR/USD adds to Friday’s gains well north of 1.1000. Industrial Production in Germany contracts more than expected. Fed-ECB policy divergence takes centre stage. (FXStreet)

The index losses further ground and puts 101.00 to the test. Markets continue to digest Friday’s solid NFP figures. Wholesale Inventories next on tap in the docket. The greenback remains on the downside and confronts the 101.00 region when measured by the USD Index (DXY) at the beginning of the week. (FXStreet)

GBP/USD has printed a fresh weekly high at 1.2653 amid a sell-off in the USD Index.Unimpressive US Employment has cemented a neutral Federal Reserve policy for the June meeting. UK’s historically high food inflation and labor shortages are supporting one more interest rate hike from the Bank of England. GBP/USD is enjoying a rally after a breakout of the Rising Channel chart pattern. (FXStreet)

USD/CAD remains depressed at multi-day low after falling the most since January. Comparatively strong Canadian jobs report, Oil price recovery favor Loonie pair buyers.NFP fails to underpin US Dollar rebound as traders seek more clues from US inflation. Canada geopolitics, US CPI eyed for clear directions. (FXStreet)

USD/CNH remains sidelined between 200-SMA and 50-SMA, portrays bullish megaphone trend-widening formation. Bullish MACD signals, sustained trading above 200-SMA keep offshore Chinese Yuan sellers hopeful. USD/CNH bears need validation from 6.8500 to retake control. (FXStreet)

AUD/USD renews three-week high inside two-month-old ascending trend channel. Bullish MACD signals, upbeat RSI keeps buyers hopeful of crossing 100-DMA hurdle. Sellers remain off the table unless witnessing daily close beyond 0.6600. (FXStreet)

NZD/USD gains traction for the fifth straight day and climbs to over a one-month high. The prevalent USD selling bias, along with a positive risk tone, continues to lend support. The fundamental backdrop favour of bullish traders ahead of the US CPI on Wednesday. (FXStreet)

USD/INR is gyrating in a range of 81.64-81.95 from the past week. The upside is capped due to a sell-off in the USD Index while the downside is being supported by rising oil prices. Investors expect that the majority of central banks have reached threshold levels and the worst is getting over. (FXStreet)

Prices of the barrel of the WTI picked up pace at the end of last week amidst rising open interest, which is indicative than extra recovery appears on the cards in the very near term. So far, the commodity seems well supported around the $68.00 region. (FXStreet)

Prices of the natural gas bounced off lows near the $2.00 mark per MMBtu against the backdrop of increasing open interest and volume on Friday. That said, further gains now emerge on the horizon in the very near term and are expected to meet interim resistance at the 55-day SMA near $2.32. (FXStreet)

Friday’s marked pullback in gold prices was on the back of shrinking open interest and volume, leaving no room for the continuation of the decline in the very near term. That said, the precious metal continues to target the 2023 high at $2067 per ounce troy (May 4), just ahead of the all-time peak at $2075 (August 7 2020). (FXStreet)

Silver oscillates in a narrow trading band through the first half of trading on Monday. The technical setup favours bullish traders and supports prospects for further gains. A convincing break below the $24.50-40 area is needed to negate the positive bias. (FXStreet)

Source: FXStreet

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