Market Update - 27 July 2023

USD/CHF remains pressured for the third consecutive day while declining toward multi-year low marked the last week. US Dollar weakness fades amid cautious mood ahead of ECB, US GDP. Fed announces 0.25% increase in interest rates but markets expect its to be the last. Swiss Franc pair’s recovery remains elusive as US statistics fail to underpin September rate hike concerns. (FXStreet)

USD/CAD prints the first daily loss in three but lacks momentum of late. Two-week-old triangle restricts immediate Loonie moves at yearly low. Month-long horizontal support, 1.3250 resistance confluence act as additional trading filters. US Q2 GDP eyed after Fed failed to impress pair buyers. (FXStreet)

AUD/USD climbs to a one-week high and draws support from sustained USD selling bias. Bets that the Fed will end its rate hike cycle and the risk-on mood undermine the USD. The technical setup supports prospects for further intraday gains to the 0.6845-50 area. (FXStreet)

USD/JPY loses momentum after reaching the 140.25 mark in the Asian session. Investors have closely watched the trajectory of Japan's ultra-loose monetary policy. The US dollar fell across the board following the Federal Reserve's (Fed) decision. Market players will focus on US Q2 GDP, weekly Jobless claims, and Durable Goods Orders later in the day. (FXStreet)

EUR/USD prints mild gains despite retreating from intraday high, up for the second consecutive day. US Dollar fails to cheer Fed’s 0.25% rate hike, signals for September amid fears of nearness to policy pivot. Recently mixed Eurozone, German data prod ECB hawks even as Lagarde might try hard to defend restrictive policy. US Q2 GDP, Durable Goods Orders are also important for clear directions as Fed Chair Powell rejects dovish concerns. (FXStreet)

The index loses further ground post-FOMC. The dollar retreats to multi-session lows near 100.60. Flash Q2 GDP, Durable Goods Orders, weekly Claims next on tap. The greenback, in terms of the USD Index (DXY), extends the weekly decline to the area of multi-session lows near 100.60 on Thursday. (FXStreet)

EUR/JPY holds below the 50- and 100-hour EMAs on the one-hour chart. The immediate resistance level is located at 155.40; 154.90–155.00 is the crucial support zone. Investors await the European Central Bank (ECB) and Bank of Japan (BoJ) decisions. (FXStreet)

GBP/JPY recovers from 180.80 as the BoE looks set to deliver the 14th consecutive interest rate hike. The IMF said on Tuesday that the BoJ should look for moving away from supportive monetary policy. Wage rise could force the BoJ to discuss a tweak in YCC in the next policy meetings. (FXStreet)

EUR/GBP remains on the back foot at weekly low during four-day losing streak, holds lower ground of late. Oversold RSI (14) conditions, pre-ECB anxiety check pair sellers targeting six-week-old horizontal support. Intraday buyers need validation from 0.8585 to retake control. (FXStreet)

NZD/USD shows a decline in volatility after a rally move propelled by less-hawkish Fed policy. The US Dollar Index has extended its correction sharply as fears of a recession in the US have eased significantly. NZD/USD tests the strength of the breakout of the consolidation formed around 0.6235. (FXStreet)

Prices of WTI reversed four sessions of gains on Wednesday. The daily decline came on the back of increasing open interest and a strong drop in volume and points to a potential consolidation around current levels. In the meantime, the immediate target remains at the key $80.00 mark per barrel for the time being. (FXStreet)

Wednesday’s negative price action in natural gas prices was on the back of shrinking open interest and volume, which hints at the idea that a near-term rebound appears on the cards with the immediate target initially around the $2.80 mark per MMBtu. (FXStreet)

Gold price strengthens as the scale of interest-rate hike by the Fed met expectations. The US Dollar Index is facing wrath due to the Fed’s less-hawkish guidance. Investors will keenly watch GDP numbers, Durable Goods Orders, and weekly Jobless claims on Thursday. (FXStreet)

Silver scales higher for the third straight day and climbs to a fresh weekly high on Thursday. The technical setup seems tilted in favour of bulls and supports prospects for further gains. A sustained break below the $24.00 mark is needed to negate the near-term positive bias. (FXStreet)

Source: FXStreet, DailyFX

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