Market Updates

Market Update - 30 May 2023

Publish date: Tue, 30 May 2023, 05:50 PM
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Market Updates

GBP/USD gains some positive traction for the third straight day, though lacks follow-through. Hawkish BoE expectations underpin the GBP and lend support amid subdued USD price action. Bets for more Fed rate hikes to limit the USD losses and cap any meaningful gains for the major. (FXStreet)

EUR/USD registered small losses on Monday and continued to stretch lower early Tuesday. The par was last seen trading at its weakest level in 10 weeks below 1.0700. Earlier in the session, the data from Spain showed that the annual Harmonized Index of Consumer Prices declined 0.2% on a monthly basis in May, dragging the annual increase lower to 2.9% from 3.8% in April. (FXStreet)

After rising toward 141.00 during the Asian trading hours on Tuesday, USD/JPY reversed its direction and fell sharply. At the time of press, the pair was trading in negative territory below 140.50. Earlier in the day,  “the Bank of Japan (BoJ) will patiently maintain the easy monetary policy as there is still a distance to go to stable 2% inflation," said BoJ Governor Kazuo Ueda. (FXStreet)

NZD/USD manages to recover a bid from a fresh YTD low touched earlier this Tuesday. A positive risk tone, retreating US bond yields cap the USD and lend support to the pair. The fundamental backdrop warrants caution before positioning for any meaningful rally. (FXStreet)

USD/CAD grinds near intraday high as bulls cheer rebound from three-week-old support line. Convergence of previous resistance line, 50-day EMA acts as the key support. Bullish MACD signals, firmer but not overbought RSI (14) line favor Loonie pair buyers. (FXStreet)

AUD/USD is expected to find support around 0.6500 as the USD index has refreshed its 10-week high at 104.45. Rising US consumer spending could force the Federal Reserve (Fed) to remain hawkish ahead. Reserve Bank of Australia Lowe is expected to deliver interest rate guidance for the June policy meeting on Wednesday. AUD/USD has been critically dumped after testing the breakout region of the prolonged consolidation around 0.6560. (FXStreet)

USD/JPY recovers from intraday low within three-week-old bullish chart formation. Monday’s bearish candlestick formation, overbought RSI (14) line lure bears. Clear downside break of 140.00 needed to lure the Yen buyers. Bulls need 141.00 breakout to aim for late November peak. (FXStreet)

USD/CHF extends Friday’s pullback from seven-week high, remains pressured around intraday low. Market’s cautious optimism, positioning before the key data weigh on US Dollar. Swiss Q1 GDP, US CB Consumer Confidence will decorate calendar. Headlines surrounding US debt-ceiling extension, full markets’ reaction to shift in risk catalysts will be the key. (FXStreet)

USD/CNH extends week-start gains to approach the highest levels since November 2022. US Dollar regains upside momentum amid mixed concerns about US debt ceiling deal, hawkish Fed bets. US-China tension escalates as Beijing turns down Washington’s request for Defense Chief meeting. Risk catalysts, US CB Consumer Confidence eyed for clear directions. (FXStreet)

USD/INR picks up bids to extend the previous day’s rebound inside bullish chart formation. 50-SMA adds strength to 82.75 hurdle for Indian Rupee bears. April’s peak, 200-SMA restrict short-term downside of USD/INR pair. US Dollar grinds higher amid default jitters, full markets’ reaction to US debt ceiling deal. (FXStreet)

USD/TRY keeps rising post-Erdogan win on Sunday. The lira has already depreciated nearly 8% this year. President Erdogan vowed to keep low-rates policy. The Turkish lira remains in free-fall vs. the greenback and lifted USD/TRY to a new all-time high near 20.25 on turnaround Tuesday. (FXStreet)

The index regains the smile and hovers around the 104.30 region. US lawmakers will vote on the debt ceiling bill late on Tuesday. US Consumer Confidence takes centre stage across the pond. The greenback, in terms of the USD Index (DXY), flirts with recent tops in the 104.40/50 band ahead of the opening bell in the old continent on turnaround Tuesday. (FXStreet)

WTI prints the first daily loss in three, eyes the biggest monthly loss in 2023. Risk profile turns dicey even as US policymakers agree on measures to avoid default. OPEC’s Al Ghais teases Iranian Oil’s return, prods energy bulls. US-China headlines, firmer US Dollar and hawkish Fed bets weigh on WTI price. (FXStreet)

Gold price drops to over a two-month low and is pressured by a combination of factors. The US debt ceiling optimism and a bullish US Dollar weigh on the safe-haven XAU/USD. Acceptance below the 100-day SMA will pave the way for a further depreciating move. (FXStreet)

BTC/USD has managed to hold above quite strong converged support around 25300-26000 (including the 89-day moving average and the February 2023 high), highlighted in the previous update. See “Bitcoin & Ethereum Week Ahead: Cracks in the Rally?”, published May 15. The rise on Monday above the initial cap at the mid-May high of 27675 has reduced the downward pressure somewhat. However, unless BTC/USD clears the 30000 mark, the path of least resistance is sideways to slightly down. (DailyFX)

ETH/USD has so far held above crucial cushion at the February highs of 1710-1740 (including the 89-day moving average) amid a broader bullish outlook. However, ETH/USD’s fall earlier this month below horizontal trendline support at 1780 could be the start of a broader consolidation/sideway range. Moreover, on the monthly charts, ETH made a lower low this month compared with the April low, suggesting a soft bias. (DailyFX)

Source: FXStreet

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

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