Market Update - 22 June 2023

USD/CHF attracts some intraday buyers after the SNB announced its policy decision. The expected 25 bps lift-off and the lack of fresh hawkish signals weigh on the CHF. A modest USD uptick remains support, albeit the Fed rate-hike uncertainty caps gains. (FXStreet)

EUR/USD has surrendered the majority of its intraday gains as the USD Index has found intermediate support. The USD Index was heavily battered on Wednesday after dovish commentaries from Fed policymakers. Price pressures in Eurozone have decelerated heavily but are still thrice the required rate of 2%. (FXStreet)

USD/JPY rebounds from intraday low amid inactive Asian session. BoJ’s Noguchi defends easy-money policy to ensure higher wages, Fed Chair Powell’s testimony repeats previous hawkish comments. Off in China, cautious mood ahead of multiple central bank announcements restrict yields, Yen. (FXStreet)

USD/CAD drops to its lowest level since September 2022 during the Asian session on Thursday. The overnight rally in Oil prices underpins the Loonie and weighs amid subdued USD price action. Bets for a 25 Fed rate hike in July, economic woes help limit losses for the buck and the major. (FXStreet)

The index alternates gains with losses near 102.00. Chief J. Powell will testify once again later in the session. Weekly Claims, housing data, Fedspeak next on tap in the docket. The USD Index (DXY), which gauges the greenback vs. a bundle of its main competitors, trades in a cautious tone near the 102.00 area on Thursday. (FXStreet)

GBP/USD oscillates in a narrow trading band ahead of the key BoE decision on Thursday. Rising bets for a jumbo 50 bps lift-off continue to underpin the GBP and act as a tailwind. The USD languishes near the monthly low and further lends some support to the major. (FXStreet)

AUD/USD has sensed buying interest near 0.6760 as the short-lived pullback in the USD index is concluding. Dovish commentary from Fed policymakers has receded the impact of hawkish Fed chair Jerome Powell’s testimony. Australian preliminary S&P PMI (June) data will remain in the spotlight. (FXStreet)

GBP/JPY portrays pre-BoE consolidation amid sluggish markets. BoJ’s Noguchi defends ultra-easy monetary policy to target higher wages. Yields pick-up bids of late as major central banks reiterate “higher for longer” interest rate pledge. UK inflation underpinned hopes of higher BoE rate than 0.25% widely anticipated. (FXStreet)

NZD/USD consolidates the previous day’s recovery inside one-month-old symmetrical triangle. Impending bull cross on MACD, sustained trading beyond 100-EMA keeps Kiwi buyers hopeful. Bears need to conquer 0.6200 to retake control, bulls can aim for 0.6310 on breakout. (FXStreet)

USD/MXN regain positive traction on Thursday, albeit lacks any follow-through. The overnight failure near the descending channel hurdle favours bearish traders. A move beyond the 200-period on H4 is needed to negate the negative outlook. (FXStreet)

USD/INR bears keep the reins at weekly low despite recent inaction. 10-week-old ascending support line, horizontal support zone challenge Indian Rupee bulls. Key SMAs, descending trend line from late May restrict immediate upside. Oscillators suggest limited downside room and highlight previous monthly lows. (FXStreet)

USD/TRY repeats two-week-old inaction surrounding the all-time high, renews intraday low of late. Turkish government lifted minimum wage by 34% earlier in the week to back odds of a bumper rate hike. Fed Chair Powell’s failure to please markets with hawkish statements prod US Dollar bulls. Turkish Lira could rally on CBRT’s heavy rate hike, expected 20.0% versus 8.5% prior. (FXStreet)

WTI crude oil pares the biggest daily gains in a week amid sluggish session. US Dollar’s heavy fall despite hawkish Fed signals joined price-positive API inventories to propel Oil price previously. Holidays in China, mixed catalysts and cautious mood ahead of multiple central bank announcements restrict WTI moves. EIA crude oil stockpiles, risk catalysts eyed for clear directions. (FXStreet)

Natural Gas price edges lower on Thursday, albeit lacks follow-through selling. The technical setup favours bulls and supports prospects for additional gains. A break below the overnight swing low is needed to negate the positive outlook. (FXStreet)

Gold prices briefly revisited the $1920 region, or multi-week lows, on Wednesday. The downtick was amidst shrinking open interest and volume and stands against the continuation of the downtrend for the time being. In the meantime, the precious metal remains contained around the $1920 zone per troy ounce. (FXStreet)

Silver remains depressed for the fourth straight day and languishes near a three-month low. The setup favours bearish traders and supports prospects for a breakthrough the 200-DMA. Any attempted recovery could attract fresh sellers near the $23.00 mark and remains capped. (FXStreet)

Source: FXStreet

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