Market Update - 20 September  2023

EUR/USD attempts to recover from the previous day’s losses, hovering around 1.0680 during the Asian session on Wednesday. The pair remains sideways due to the market caution ahead of the interest rate decision by the US Federal Reserve (Fed), scheduled for release later in the North American session. (FXStreet)

The USD/JPY pair gains some follow-through positive traction for the second successive day on Wednesday and touches a fresh high since November 2022 during the early part of the European session. Spot prices, however, retreat a few pips in the last hour and currently trade just above the 148.00 round-figure mark, up around 0.15% for the day, as traders start repositioning for the highly-anticipated FOMC monetary policy decision. (FXStreet)

The GBP/USD pair extends the previous day's rejection slide from the vicinity of a technically significant 200-day SMA, around the 1.2425-1.2430 region, and remains on the defensive through the Asian session on Wednesday. Spot prices currently trade below the 1.2400 round-figure mark, well within the striking distance of the lowest level since early June. (FXStreet)

USD/CHF snaps the previous day’s gains, trading lower around 0.8980 during the European session on Wednesday. The US Dollar (USD) could experience the upward support driven by the improved US Treasury yields. The US 10-year Treasury yield stands at 4.35% by the press time, below its highest level in 16 years. (FXStreet)

AUD/USD extends gains for the third consecutive day, trading higher around 0.6460 during the European session on Wednesday. The pair is experiencing upward support possibly due to the market caution ahead of the release of the interest rate decision by the US Federal Reserve (Fed). (FXStreet)

The USD/CAD pair struggles to capitalize on the previous day's late rebound from the 1.3380-1.3375 region, or its lowest level since August 10 and seesaws between tepid gains/minor losses through the early European session on Wednesday. Spot prices remain below a technically significant 200-day Simple Moving Average (SMA) and currently trade around mid-1.3400s, nearly unchanged for the day as traders keenly await the outcome of the highly-anticipated FOMC policy meeting. (FXStreet)

The NZD/USD pair trades sideways in a narrow range of 0.5932-0.5944 in the European session. The Kiwi asset struggles for a direction as investors await the interest rate decision from the Federal Reserve (Fed), which is expected to remain unchanged. (FXStreet)

EUR/GBP recovers from the previous day’s losses, trading near 0.8650 during the early trading hours of the European session on Wednesday. The pair gained strength after the release of downbeat inflation data from the United Kingdom (UK) and the solid figures of commodity inflation from Germany. (FXStreet)

The GBP/JPY cross loses momentum during the early European session on Wednesday. The British Pound (GBP) faces some selling pressure following the softer-than-expected economic data from the UK. The market mood remains cautious as investors await the Bank of England (BoE) interest rate decision on Thursday. The cross currently trades near 182.65, losing 0.31% on the day. (FXStreet)

The USD/JPY pair trades sideways in the 147.70-147.85 region during the early European session on Wednesday. At the press time, the major pair is trading at 147.83, losing 0.01% on the day. The market turns cautious ahead of the key Federal Reserve (Fed) interest rate decision on Wednesday in the North American session. (FXStreet)

USD/INR attempts to snap the winning streak that began on September 12, trading lower around 83.20 during the Asian session on Wednesday. However, the pair experienced upward support driven by the higher US Treasury yields. The pair could break the intraday high at 83.29, followed by the 83.50 psychological level. However, market participants expect the Reserve Bank of India (RBI) to intervene by selling US Dollar (USD), attempting to slow down the USD rally. (FXStreet)

The USD/CNH pair edges higher for the third successive day on Wednesday and climbs to over a one-week high, around the 7.3125 region during the Asian session. The technical setup, meanwhile, seems tilted in favour of bullish traders and supports prospects for an extension of the recent bounce from the 7.2595 region, or a nearly two-week low touched last Friday. (FXStreet)

The USD/MXN remains on the defensive through the Asian session on Wednesday and is currently placed around the 17.0760-17.0755 area, representing the 61.8% Fibonacci retracement level of the rally from the August monthly swing low. Spot prices, however, manage to hold above a two-week low touched on Monday and the 50-day Simple Moving Average (SMA), pegged near the 17.0235 region, which should act as a key pivotal point ahead of the highly-anticipated FOMC monetary policy decision. (FXStreet)

WTI prices closed with market losses after hitting new yearly peaks on Tuesday. The daily retracement was accompanied by shrinking open interest, which removes some strength from further downside. However, the strong increase in volume could also reinforce the case for further selling pressure in the very near term. (FXStreet)

Natural gas prices extended the weekly recovery on Tuesday, flirting at the same time with the key 200-day SMA near the $2.90 region. The uptick was on the back of shrinking open interest and is indicative that a potential knee-jerk could be in the offing in the very near term. In the meantime, the $3.00 region per MMBtu remains a key resistance area for the time being. (FXStreet)

Gold price (XAU/USD) consolidates around $1,930 during the Asian trading hours on Wednesday. Market players prefer to wait on the sidelines ahead of the Federal Reserve (Fed) Interest Rate Decision and FOMC Press Conference. These events could trigger the volatility in the market. (FXStreet)

Silver reverses modest intraday losses to the $23.00 neighbourhood and turns neutral during the early European session on Wednesday, albeit lacks follow-through. The white metal currently trades around the $23.20 area, unchanged for the day, and for now, seems to have stalled its retracement slide from a nearly two-week high touched on Tuesday. (FXStreet)

Source: FXStreet

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