Market Update - 28 July 2023

AUD/USD continues losing ground on Friday and drops to a nearly three-week low. The USD gains follow-through traction and is seen as a key factor exerting pressure. Technical selling below the 200-day SMA also contributes to the heavily offered tone. (FXStreet)

GBP/USD adds to the overnight losses and drops t a nearly three-week low on Friday. The USD remains well supported by Thursday's upbeat macro data and exerts pressure. A sustained break below a two-month-old ascending trend-line favours bearish traders. (FXStreet)

The index adds to Thursday’s gains and approaches 102.00. US yields trade in a mixed fashion so far on Friday. Inflation tracked by the PCE, Consumer Sentiment next on tap. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, extends the optimism seen in the second half of the week and trades at shouting distance from the key hurdle at 102.00 the figure on Friday. (FXStreet)

USD/CAD gains momentum near 1.3230 ahead of the economic data released from Canada and the US. The Federal Reserve (Fed) Chairman Jerome Powell left the room for another 25 bps rate hike this year. BoC Governor Tiff Macklem said future policy decisions will be based on the incoming data and inflation. (FXStreet)

USD/JPY shed gains and reverses quickly after the BoJ policy announcement. The US Dollar Index is juggling in a narrow range around 101.80 after a rally as the US economy turned surprisingly resilient than expected. USD/JPY is declining towards the horizontal support which is plotted around 137.43. (FXStreet)

EUR/USD remains sidelined at the lowest level in three weeks as market await the key inflation data from Germany, US. ECB rate hike failed to please Euro bulls amid recession fears in bloc. Strong US growth numbers back Fed’s September rate increase but US Core PCE Price Index will be crucial to follow. German inflation can trigger corrective bounce as ECB emphasizes “meeting by meeting” approach for interest rate decisions. (FXStreet)

USD/CHF prints mild gains after bouncing off the lowest level since 2015, picking up bids of late. Swiss Real Retail Sales growth improves to 1.8% YoY in June, versus -0.9% prior. US Dollar Index grinds near three-week high as bulls lack follow-through ahead of Fed’s favorite inflation. Market’s cautious optimism, lackluster yields also prod Swiss Franc pair after a volatile week. (FXStreet)

GBP/JPY cross remains under selling pressure and slides to the 177.20 area after the BoJ rate decision. Bank of Japan (BoJ) kept its short-term interest rates at -0.1%, 10-year JGB yield target around 0%. BoJ is closely watching the Federal Reserve's (Fed) and other central banks' policy decisions. (FXStreet)

EUR/JPY witnessed good two-way price swings on Friday after the crucial BoJ decision. The BoJ pledges to guide yield with flexibility and provides a strong boost to the JPY. The lack of hawkish signals from the ECB undermines the Euro and should cap the upside. (FXStreet)

NZD/USD stays pressured at the lowest level in three weeks, down for the third consecutive day. Downside break of 200-SMA, short-term key support line favor Kiwi bears. 61.8% Fibonacci retracement level, rising trend line from late May can test further downside amid oversold RSI. (FXStreet)

WTI prices rose past the key $80.00 mark per barrel on Thursday, although they closed below it. The daily gains were amidst shrinking open interest and warns against the continuation of the uptrend in the very near term. In the meantime, the $80.00 region remains a key resistance area for the time being. (FXStreet)

Thursday’s decline in prices of natural gas was amidst rising open interest, which suggests that extra decline could be in the pipeline in the very near term. Against that, the commodity should face the next contention around the monthly lows near the $2.50 mark per MMBtu (July 17). (FXStreet)

Gold price falls back as Greenback swallows steroids amid US economic resilience. US Q2 GDP, demand for Durable Goods in June remained robust due to higher consumer spending. US recession fears fade significantly amid upbeat labor market conditions. (FXStreet)

Silver regains positive traction on Friday and moves away from a two-week low. The bearish technical setup warrants caution before positioning for further gains. A sustained move beyond the $25.00 mark is needed to negate the negative bias. (FXStreet)

Source: FXStreet, DailyFX

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