Market Update - 26 June 2023

The index starts the week slightly offered below 103.00. The improvement in the risk complex weighs on the greenback. The Dallas Fed Manufacturing Index will be the sole release on Monday. On Monday, the USD Index (DXY), which monitors the performance of the greenback against a basket of its primary rival currencies, began the week on a weaker note, retreating from the previous week's highs beyond the 103.00 level. (FXStreet)

EUR/JPY remains under some selling pressure for the second straight day on Monday. Friday’s disappointing Eurozone PMIs undermine the Euro and act as a headwind. Intervention warning boosts the JPY and contributes to the modest intraday losses. The BoJ-ECB policy divergence should limit losses and warrants caution for bears. (FXStreet)

USD/CAD portrays failed recovery from nine-month low, within weekly bearish channel. 200-HMA, fortnight-old descending resistance line act as additional upside filters. Immediate rising support line can offer intermediate rest to Loonie pair sellers. (FXStreet)

USD/CHF clings to mild losses during the first negative day in three. Market sentiment dwindles amid mixed headlines about China, US. Risk catalysts can entertain Swiss France traders ahead of US inflation clues, central bank traders. (FXStreet)

EUR/USD struggles to defend the first daily gains in three, fades bounce off one-week low. 200-HMA, comparatively upbeat US data than from Eurozone keeps Euro pair sellers hopeful. Lagarde will speak at ECB Forum, multiple central bankers’ speeches due on the platform during the week. (FXStreet)

NZD/USD has gauged intermediate support near 0.6140, however, more downside seems favored amid uncertainty. Investors should note that core inflation in the US economy has remained extremely persistent. NZD/USD has formed a Head and Shoulder chart pattern on a two-hour scale, which indicates a prolonged consolidation. (FXStreet)

AUD/USD is expected to resume its downside journey below 0.6670 amid a risk-off mood. The US Durable Goods Orders data is expected to contract by 1.0%, against an expansion of 1.1%. The expectations for more rate hikes from the RBA are higher as risks of upside inflation are elevated. (FXStreet)

GBP/JPY is oscillating in a narrow range above 182.00 despite a dovish BoJ Summary of Opinions. BoJ Summary of Opinions conveyed that it is premature to shift policy as smaller firms becoming keen to hike wages and invest more. UK’s core inflation is in the wrong direction despite consistent policy-tightening by the central bank. (FXStreet)

USD/RUB remains firmer at the highest levels since April 2022, pares the first weekly loss in four. Wagner mercenaries retreat towards Belarus after a deal with Moscow to avoid mutiny. Softer Oil price also exerts downside pressure on Ruble. US Dollar struggles to defend the weekly gains ahead of inflation clues, central bankers’ speeches. (FXStreet)

Prices of WTI rebounded from the $67.00 region to close with marginal losses on Friday. The rebound was in tandem with shrinking open interest and volume and removes strength from a probable move higher in the very near term. That said, another pullback to the monthly lows near the $67.00 mark per barrel remains on the cards. (FXStreet)

Natural Gas prices extended the recovery and advanced to multi-week highs past $2.70 on Friday. The strong uptick was accompanied by declining open interest, which pours some cold water over the likelihood of further gains in the very near term. The next target on the upside appears at the March top just beyond the key $3.00 mark per MMBtu. (FXStreet)

Gold price gains some positive traction for the second successive day on Monday. Geopolitical risks and a modest US Dollar weakness lend support to the XAU/USD. Hawkish major central banks might hold back bullish from placing aggressive bets. (FXStreet)

Silver gains strong traction for the second straight day and recovers further from a multi-month low. The intraday technical setup favours bullish traders and supports prospects for additional gains. Weakness back below the 23.6% Fibo. will negate the positive bias and expose the $22.00 mark. (FXStreet)

Source: FXStreet

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