Market Update - 21 June 2023

EUR/USD is oscillating above 1.0900 as the focus shifts to Fed Powell’s testimony. Investors would like to see whether Fed Powell would stand on guidance already delivered. ECB Lagarde has confirmed that a rate hike in the July meeting is appropriate. (FXStreet)

USD/CHF prints four-day uptrend within short-term bullish chart pattern. 200-HMA prods Swiss Franc sellers inside the rising channel. Previous resistance line, 100-HMA act as extra filter towards the south. SNB’s anticipated rate hike jostles with Fed’s hawkish halt to lure buyers. (FXStreet)

The index trades slightly bid near the 102.60 region. Investors remain cautious amidst China and Powell. Fed’s Powell will testify before congress later in the session. The greenback, when tracked by the USD Index (DXY), manages to keep the weekly recovery well in place around the 102.60 region on Wednesday. (FXStreet)

USD/JPY has scaled strongly above 142.00 as the USD Index has remained firm. Investors are keenly focusing on whether Fed Powell will stick to its prior guidance of pushing interest rates further or to remain data-dependent. It seems that the consistent ultra-dovish interest rate policy by the BoJ is doing justice with its job. (FXStreet)

GBP/USD picks up bids to pare weekly loss, the first in four, after upbeat British inflation data. UK CPI reprints 8.7% YoY for May versus 8.4% expected, Core CPI crosses 6.8% market forecasts and previous readings. Hawkish Fed talks, upbeat US data and sour sentiment put a floor under the US Dollar despite recent inaction. Fed Chair Jerome Powell’s bi-annual testimony eyed ahead of Thursday’s BoE announcements. (FXStreet)

USD/CAD fades bounce off the lowest levels in nine months, renews intraday low of late. Oil price recovers amid geopolitical concerns, hopes of China stimulus. US Dollar cheers upbeat US data, hawkish Fed signals but cautious mood ahead of Powell’s testimony prod greenback buyers. Canada Retail Sales for May will also be important to watch for intraday clues. (FXStreet)

AUD/USD has faced immense pressure around 0.6800 as the focus shifts to Fed Powell’s testimony. New Fed nominees have cleared their intentions that a slowdown in price pressures is their major focus. The Australian Dollar has shown a bumpy ride as RBA minutes turn out to be less hawkish than expected. (FXStreet)

GBP/JPY prints the first daily gains in three after UK inflation data, snaps two-day losing streak. UK CPI, Core CPI both rose past market forecasts in May. Clear bounce off 100-HMA, upbeat oscillators also favor the pair buyers. Weekly resistance line prods immediate upside as bulls brace for fresh multi-month high. (FXStreet)

EUR/GBP meets with some supply following the release of a stronger UK CPI report. The data lifts bets for more aggressive BoE rate hikes and boosts the British Pound. The ECB’s hawkish outlook helps limit the downside ahead of the BoE on Thursday. (FXStreet)

USD/MXN has printed a fresh day's high at 17.24 amid a risk-aversion theme. Fed Powell is expected to deliver hawkish guidance as core inflation in the United States is still showing persistence. Banxico is expected to keep interest rates steady consecutively for the second time. (FXStreet)

USD/CNH seesaws around the highest levels since November 2022, sidelined of late. China’s inability to please markets with stimulus measures, PBoC rate cuts weigh on Yuan. US Dollar benefits from hawkish Fed signals, upbeat US data and fears of Sino-American tussles. Fed Chair Powell’s bi-annual testimony will be key to watch for clear directions. (FXStreet)

USD/INR prints four-day losing streak as markets await Fed Chair Powell’s bi-annual testimony. Hawkish Fed talks, upbeat US data and China woes propel US Dollar amid sluggish markets. Upbeat WTI crude oil price, Fed vs. RBI play weigh on Indian Rupee. (FXStreet)

NZD/USD remains confined in a narrow trading band through the Asian session on Wednesday. A modest USD strength, along with economic woes, act as a headwind for the risk-sensitive Kiwi. Investors now look to Fed Chair Jerome Powell’s testimony before placing fresh directional bets. (FXStreet)

WTI regains positive traction, albeit remains well within the previous day’s trading range. The mixed technical setup warrants some caution before placing aggressive directional bets. The 50-day SMA hurdle is likely to act as a pivotal point and holds the key for bullish traders. (FXStreet)

Natural Gas Price clings to mild gains after falling the most in three months. Market’s consolidation ahead of top-tier data/events allows XNG/USD to lick its wounds at weekly low. Fears surrounding China economic growth, hawkish Fed concerns weigh on energy prices amid firmer US Dollar. (FXStreet)

Silver is seen consolidating the overnight slump to a fresh monthly low. The technical setup supports prospects for additional near-term losses. A sustained strength beyond $24.00 might negate the negative outlook. (FXStreet)

Source: FXStreet

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.