Market Updates

Market Update - 01 June 2023

Publish date: Thu, 01 Jun 2023, 05:35 PM
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Market Updates

USD/JPY regains positive traction on Thursday and snaps a three-day losing streak. A goodish pickup in the US bond yields boosts the USD and lends support to the pair. Reduced bets for more Fed rate hikes and intervention warnings could cap the major. (FXStreet)

GBP/USD pulls back from over a one-week high amid the emergence of fresh USD buying. A positive risk tone and reduced bets for more Fed rate hikes could cap gains for the buck. Expectations that the BoE will raise rates further could underpin the GBP and limit losses. (FXStreet)

EUR/USD is oscillating below 1.0700 as the USD Index has climbed above the immediate resistance of 104.30. Federal Reserve policymakers are divided about interest rate guidance, which are creating chaos in financial markets. European Central Bank Muller is confident that the central bank will hike by 25 bps more than once as core inflation is still stubborn. EUR/USD is expected to retrace the entire Fibonacci tool placement plotted from March 15 low at 1.0516 to April 26 high at 1.1095. (FXStreet)

NZD/USD is struggling to defend the crucial support of 0.6000 as the USD index is aiming to extend recovery. The overall market mood is expected to remain cautious amid the release of the US Employment and Manufacturing PMI. Caixin Manufacturing PMI data landed higher at 50.9 vs. the consensus and the prior release of 49.5. (FXStreet)

USD/CAD remains pressured at the lowest levels in seven days. US Dollar struggles on cautious optimism, mixed Fed concerns. Upbeat Canada GDP teases Loonie buyers; Oil benefits from sluggish USD, mildly positive sentiment. US/Canada PMIs, US employment clues eyed for clear directions. (FXStreet)

AUD/USD picks up bids to refresh intraday high, snaps two-day downtrend. Upbeat China Caixin Manufacturing PMI, US debt-ceiling bill passage in the House favor bulls. Bulls sneak in from seven-month-old descending support line but multiple hurdle prod further upside. Bearish MACD signals, challenges to risk-on mood and hawkish Fed bets keep Aussie sellers hopeful. (FXStreet)

USD/CHF struggles to extend two-day uptrend at the highest levels since early April. US Dollar lacks clear directions amid mixed sentiment, anxiety ahead of key data. Swiss trade numbers came in unimpressive for April. US preliminary activity data, employment numbers for May will be crucial for fresh impulse. (FXStreet)

USD/MXN is trading lackluster below 17.70 despite the USD index remaining extremely volatile. Clearance of US debt-ceiling bill in Congress has sent US Treasury yields on fire. The US ISM is set to report a seventh consecutive contraction in Manufacturing PMI. (FXStreet)

USD/INR has tested territory below 82.50 as investors discount the impact of the overnight sell-off in the USD Index. The risk of recession still persists as the Fed is expected to continue its policy-tightening spell. The Indian Rupee remained in the spotlight after the release of upbeat Q4GDP data. (FXStreet)

USD/CNH takes offers to refresh intraday low, prints the first daily loss in four at multi-day top. China Caixin Manufacturing PMI prints the first above 50.0 print in three months. Upbeat sentiment, easing hawkish Fed bets and the mixed US data also exert downside pressure on Chinese Yuan pair. US employment clues, Senate voting on debt ceiling eyed for clear directions. (FXStreet)

WTI clings to mild gains during the first positive day in three, fades upside momentum of late. Sustained break of previous key support, bearish chart formation keeps Oil bears hopeful. Clear break of $67.95 can trigger fresh downswing, bulls remain cautious below $74.70. (FXStreet)

The US Dollar Index (DXY) touched its strongest level since mid-March above 104.50 on Wednesday after the US Bureau of Labor Statistics (BLS) reported that the number of job openings on the last business day of April stood at 10.1 million, compared to 9.74 million in March and the market of 9.37 million. Meanwhile, the Federal Reserve noted in its Beige Book that there was little change in the overall economic activity in April and early May. “Prices rose moderately over the reporting period, though the rate of increase slowed in many Districts,” the publication further read. (FXStreet)

Silver is seen consolidating the previous day’s positive move to over a one-week high. The mixed technical setup warrants some caution before placing aggressive bullish bets. Sustained Weakness back below the $23.00 mark should pave the way for deeper losses. (FXStreet)

On the daily chart, the S&P 500 appears to be trading within the boundaries of a Rising Wedge chart formation. Meanwhile, negative RSI divergence shows that upside momentum is fading. That can at times precede a turn lower. Breaking under the wedge would open the door to a turn lower, placing the focus on support. That seems to be the 38.2% Fibonacci extension level at 4109. (DailyFX)

Source: FXStreet, DailyFX

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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