Market Update - 22 Aug 2023

GBP/JPY corrects from a fresh multi-year peak and is pressured by reviving demand for the JPY. The yield on the benchmark 10-year JGB climbs to a nine-year high and lends support to the JPY. The divergent BoJ-BoE monetary policy stance warrants caution for aggressive bearish traders. (FXStreet)

Euro looks to consolidate the move past 1.0900 vs. the US Dollar. Stocks in Europe extend the positive start of the week. EUR/USD briefly climbs to four-day highs around 1.0930. The USD Index (DXY) puts the 103.00 region to the test. EMU Current Account surplus widens in June. Fedspeak and housing data will be next on tap in the US. (FXStreet)

USD/JPY trades sideways around 145.80 on JGB yields. The 146.00 level emerges as the barrier, following the monthly high. USD/JPY could face immediate support around nine-day EMA. (FXStreet)

The index moves lower and approaches 103.00. US yields maintain the march north unabated. Fedspeak, housing data will take centre stage later on Tuesday. The greenback, in terms of the USD Index (DXY), grinds lower and puts the 103.00 region to the test on turnaround Tuesday. (FXStreet)

USD/CAD struggles to gain and holds below the mid 1.3500s in the early European session. The pair holds below the 50-hour EMA; the Relative Strength Index (RSI) stands below 50. The critical support level is located at 1.3495-1.3510 region; the immediate resistance level is seen at 1.3575. (FXStreet)

GBP/USD pair posts a modest gain near 1.2770, up 0.11% on the day. GBP/USD holds above the 50- and 100-hour EMA; the Relative Strength Index (RSI) supports the buyers. The immediate resistance level is seen at 1.2780-1.2785 region; 1.2740 acts as an initial support level. (FXStreet)

EUR/GBP gains ground around 0.8543, up 0.02% for the day. The German Buba Monthly Report revealed that inflation could stay above the central bank's target for longer. Traders expect the Bank of England (BoE) to raise a 25 basis point (bps) rate to 5.50% in the September meeting. The Eurozone/UK PMI data, ECB's President Lagarde speech will be in focus. (FXStreet)

USD/CHF takes offers to extend week-start reversal from 1.5-month high. U-turn from multi-month-old resistance line, downside break of immediate rising trend line favor Swiss Franc pair sellers. 200-SMA lures short-term sellers; bulls need validation from 0.8830. (FXStreet)

NZD/USD clings to mild gains defends late Monday’s rebound from YTD low. Upside break of two-week-old descending resistance line, bullish MACD signals favor Kiwi bulls. 50-SMA, monthly trend line resistance prod pair buyers. Double bottoms around 0.5900 challenge NZD/USD bears from retaking control. (FXStreet)

AUD/USD gains some follow-through positive traction and climbs to a multi-day top on Tuesday. A recovery in the risk sentiment, retreating US bond yields weigh on the USD and lend support. Hawkish Fed expectations to limit the USD losses and cap the pair amid China’s economic woes. (FXStreet)

USD/TRY renews the all-time high despite softer US Dollar. CBRT’s struggle to tame inflation joins challenges to Fed policy pivot concerns to weigh on Turkish Lira. Multi-year high yields, China-inflicted risk-off mood also underpin USD/TRY advances. Second-tier catalysts may entertain intraday, CBRT rate hike, Fed Chair Powell’s speech at Jackson Hole eyed. (FXStreet)

USD/IDR holds positive ground near 15,325 amid higher US Treasury bond yields and the stronger USD. Bank Indonesia (BI) is expected to maintain its benchmark interest rate at 5.75% on Thursday. The uncertainty in the Chinese economy will be a burden on Indonesia's growth. Investors will monitor BI rate decisions, Federal Reserve (Fed) Chair Jerome Powell’s speech. (FXStreet)

USD/INR is seen consolidating in a narrow trading band above the 83.00 mark on Tuesday. The fundamental and technical setup supports prospects for a further appreciating move. Any meaningful corrective slide might be seen as a buying opportunity and remain limited. (FXStreet)

Monday’s marked pullback in WTI prices was accompanied by shrinking open interest and volume. Against that, the likelihood of a deeper retracement seems not favoured in the very near term. In the meantime, bouts of weakness are expected to meet contention around monthly lows in the sub-$79.00 region. (FXStreet)

Gold prices kicked off the week in a positive mood, just below the $1900 mark per troy ounce. The uptick, however, was amidst a small drop in open interest and removes some strength from further recovery in the very near term. That said, the commodity might enter a consolidative phase around current levels for the time being. (FXStreet)

Silver pauses a three-day-old ascending trend near the 38.2% Fibo. resistance. The technical setup supports prospects for a further near-term appreciating move. Any meaningful dip could be seen as a buying opportunity near the 23.00 mark. (FXStreet)

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Source: FXStreet

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