Market Update - 24 Aug 2023

GBP/JPY seesaws between tepid gains/minor losses through the early European session. Bets for a lower BoE peak rate undermine the GBP and act as a headwind for the cross. Recession risks benefit the JPY’s relative safe-haven status and contribute to capping. (FXStreet)

EUR/GBP trades higher on the back of disappointing UK PMI data. Soft Eurozone PMI could be capping the gains of the pair. Investors await the speech from ECB’s Lagarde, seeking clues about the inflation scenario. (FXStreet)

The index looks mildly bid in the mid-103.00s. Markets’ attention shifts to the Jackson Hole event. Durable Goods Orders, weekly Claims next on tap in the docket. The greenback, in terms of the USD Index (DXY), regains some balance and revisits the 103.50 region on Thursday. (FXStreet)

USD/JPY strengthened amid a positive tone around the Asian equity markets. Nine-day EMA acts as the barrier, followed by the 146.00 psychological level. Momentum indicators suggest a bullish bias for USD/JPY.

USD/CAD loses momentum for two days in a row amid the USD weakness. The pair holds below the key 100-hour Exponential Moving Average (EMA) on the one-hour chart. The first resistance level to watch is 1.3535; the critical support zone is located at the 1.3495-1.3500 region. (FXStreet)

EUR/USD trades higher around 1.0870 on the back of downbeat US PMI data. The Euro showed resilience despite weaker Eurozone PMI data. Investors await speeches from Fed Chair Powell and ECB President Lagarde. (FXStreet)

USD/CHF remains pressured at weekly low, extends pullback from 50-DMA, key resistance line. Downside break of monthly support line, looming bear cross on MACD also favor Swiss Franc pair sellers. One-month-old horizontal support zone appears a tough nut to crack for bears. Buyers need successful break of 0.8830 to retake control. (FXStreet)

NZD/USD comes under heavy selling pressure and is weighed down by resurgent USD demand. Reduced bets for more Fed rate hikes might cap the USD and limit any further losses for the pair. Traders now look to the US macro data for some impetus ahead of the Jackson Hole Symposium. (FXStreet)

AUD/JPY trades within a descending trend channel from the middle of June. The first resistance level for AUD/JPY emerges at 94.40; the initial support level is seen at 93.70. The Relative Strength Index (RSI) holds in bullish territory above 50. (FXStreet)

USD/IDR takes offers to renew weekly low, down for the third consecutive day. Downbeat US PMIs, positioning for BI status quo weigh on Indonesia Rupiah. Optimism in China, receding fears of higher rates elsewhere add strength to bearish bias. Bank Indonesia is expected to keep rates unchanged at 5.75%; Fed Chair Powell’s speech at Jackson Hole is crucial. (FXStreet)

AUD/USD consolidates its gains near 0.6480 ahead of the US data. US Business activity in August expanded at a slow pace The Australian S&P Global PMI came in lower than expected. Investors await the Jackson Hole Symposium, the Federal Reserve (Fed) Chairman Jerome Powell's Speech. (FXStreet)

USD/RUB gains momentum around the 94.00 mark amid the cautious mood in the market. Russian President Vladimir Putin warned that inflationary risks were rising in the country. The Jackson Hole Symposium, the Federal Reserve (Fed) Chairman Jerome Powell's Speech will be the highlight. (FXStreet)

USD/TRY pushes upside boundaries while refreshing record highs in the last few successive days. Wildfire pushes Ankara to close key Strait, pausing hundreds of ships and fueling inflation woes. US Dollar struggles for clear directions as softer PMIs flag Fed policy pivot concerns but Powell isn’t known dovish. CBRT is expected to lift benchmark Interest Rates by 300 bps to 20.00%, any disappointment can fuel USD/TRY. (FXStreet)

WTI crude oil prints four-day losing streak while confirming bearish chart formation. Sustained trading beneath the key SMAs, bearish MACD signals join Head-and-Shoulders to favor energy bears. Six-week-old horizontal support zone can prod WTI bears before directing them toward $71.00 theoretical target. Oil buyers remain off the table below $81.40. (FXStreet)

Prices of natural gas retreated for the second session in a row and closed just below the key $2.50 mark on Wednesday. The daily decline came along rising open interest and allows for the continuation of the ongoing retracement in the very near term. Furthermore, a sustained drop below $2.50 should pave the way for extra pullbacks to, initially, the June low near $2.15 per MMBtu. (FXStreet)

Silver meets with some supply and erodes a part of the overnight gains to a three-week peak. Extremely overbought RSI on hourly charts prompts traders to lighten some of their bullish bets. Any subsequent slide might still be seen as a buying opportunity and is likely to remain limited. (FXStreet)

Source: FXStreet

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