Market Update - 21 September  2023

EUR/USD extends the losses for the third successive day. Spot price is trading lower around 1.0640 during the Asian session on Thursday. As expected, the US Federal Reserve (Fed) chose to maintain the current benchmark policy rates at 5.5% during the meeting convened on Wednesday. (FXStreet)

The USD/JPY pair pulls back after hitting a fresh YTD peak, around the 148.45 region during the Asian session this Thursday, albeit lacks follow-through and manages to hold above the daily trough. Spot prices currently trade around the 148.25 area, down less than 0.10% for the day, and seem poised to appreciate further. (FXStreet)

GBP/USD expands losses on the second successive day, trading lower around 1.2320 during the Asian session on Thursday. US Federal Reserve’s (Fed) hawkish stance exerts downward pressure on the pair. As anticipated, the Fed chose to keep the existing benchmark policy rates unchanged at 5.5% during the meeting held on Wednesday. (FXStreet)

The USD/CHF pair catches aggressive bids during the early part of the European session on Thursday and rallies to its highest level since mid-June after the Swiss National Bank (SNB) announced its policy decision. Spot prices currently trade around mid-0.9000s, with bulls now looking to build on the momentum further beyond a technically significant 200-day Simple Moving Average (SMA) before placing fresh bets. (FXStreet)

AUD/USD extends the losses on the second day, trading sideways around 0.6410 during the European session on Thursday. The US Federal Reserve’s (Fed) hawkish stance on interest rates trajectory exerts pressure on the pair. (FXStreet)

The USD/CAD pair trades in positive territory for the second straight day during the early European session on Thursday.  The pair's recovery is bolstered by the Federal Reserve's (Fed) hawkish stance after holding the interest rate unchanged in its policy meeting on Wednesday. Additionally, a decline in oil prices weighs on the commodity-linked Loonie as the country is the leading oil exporter to the United States. The pair currently trades near 1.3495, gaining 0.26% on the day. (FXStreet)

The NZD/USD pair attracts fresh sellers following an intraday uptick to mid-0.5900s and drops to a fresh daily low during the early part of the European session on Thursday. Spot prices, however, manage to defend the 0.5900 round figure, though the fundamental backdrop supports prospects for an extension of the retracement slide from a nearly three-week high, around the 0.5985 region touched on Wednesday. (FXStreet)

The USD/CHF pair gains momentum near the 0.9000 psychological mark during the early European session on Thursday. Market players await the Swiss National Bank (SNB) interest rate decision later in the day. SNB is expected to raise additional interest rates by 25 basis points (bps) from 1.75% to 2% on Thursday. However, if SNB offers hints about its last hike, the monetary policy divergences between the US and Switzerland might continue to drive the pair higher. (FXStreet)

The USD/INR pair attracts fresh buyers near the 82.90 region on Thursday and reverses a part of the previous day's downfall from the 83.30 area, or over a one-month top. Spot prices currently trade just above the 83.00 mark and remain well within the striking distance of the all-time peak touched on August 15. (FXStreet)

USD/MXN continues to gain on the second successive day, trading higher around 17.1340 during the Asian session on Thursday. As anticipated, the US Federal Reserve (Fed) opted to keep the existing benchmark policy rates unchanged at 5.5% during the meeting held on Wednesday. (FXStreet)

The GBP/JPY cross comes under some renewed selling pressure during the Asian session on Thursday and drops to the 182.40 area, or its lowest level since August 9 in the last hour. The British Pound (GBP) continues with its relative underperformance in the wake of expectations for an imminent pause in the Bank of England's (BoE) rate-hiking cycle, which, in turn, is seen weighing on the GBP/JPY cross. Data released from the UK on Wednesday showed that the annual headline CPI fell to 6.7% in August from 6.8% in July, defying the consensus forecast for a rise to 7%.. (FXStreet)

The AUD/USD pair extends the previous day's sharp retracement slide from levels just above the 0.6500 psychological mark, or a nearly three-week high, and continues losing ground through the Asian session on Thursday. The downward trajectory drags spot prices to the lower end of the weekly range, around the 0.6420-0.6415 region, and is sponsored by sustained US Dollar (USD) buying. (FXStreet)

WTI prices extended the rejection from the 2023 high, breaking below the key $90.00 barrier per barrel on Wednesday. The downtick was on the back of shrinking open interest and volume and suggests that a sustained decline appears not favoured for the time being. On the downside, there is a provisional support at the 55-day SMA, today at $81.87. (FXStreet)

Wednesday’s downtick in prices of natural gas was on the back of rising open interest, which suggests that extra downside appears likely in the very near term. In the meantime, the weekly low around the $2.60 region per MMBtu (September 18) initially emerges as an interim support for the time being. (FXStreet)

Gold price hovers around $1,930 during the early trading hours of the European session on Thursday. Investors seem to shift their focus on upcoming US data after the US Federal Reserve’s (Fed) decision on policy rates. (FXStreet)

Silver attracts some dip-buying in the vicinity of the $23.00 mark on Thursday and climbs to the top end of its intraday trading range during the first half of the European session. The white metal is currently placed around the $23.25 region and for now, seems to have stalled its retracement slide from the $23.60 area, or a two-week high touched on Wednesday. (FXStreet)

Source: FXStreet

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