Edge-Forex Forex

4 Global Market Updates- 13 February, 2023

In this article, we have covered the highlights of global market news about the GBP/JPY, USD/CAD, AUD/USD and USD/JPY.

GBP/JPY Price Analysis: Slightly bid within a symmetrical triangle below 159.00

During Monday’s Asian session, GBP/JPY gains up bids to 158.70 as it grinds within a two-wee old triangular pattern.

The currency pair posts modest improvements after a two-week slump that was continuous. Nevertheless, the quote’s recovery movements within the symmetrical triangle are supported by the stable RSI (14) level.

But purchasers of the GBP/JPY should be aware that the 200-SMA obstacle, which is located around 159.30 as of press time, works as an immediate upward hurdle for them to observe before the triangle above’s top line.

The psychological magnet around 160.00 holds the key for the GBP/JPY run-up, which will aim for the previous monthly high at 161.85 and then the final line of defense for sellers, which is the late December 2022 high near 162.35.

On the other hand, a downward breach of the 158.30 level would contradict the triangular formation and potentially portend a decline into the 143.00 level. However, before the GBP/JPY bears can celebrate the multi-month low, they must overcome several obstacles.

The important lows among them are those noted in February and January 2023, respectively, around 156.75 and 155.35, which will come before the September 2022 bottom near 148.80. Watch out for round number 150.00 as well.

USD/CAD continues to climb over 1.3370 as attention turns to US Inflation

After creating a cushion of about 1.3340 during the Tokyo session, the USD/CAD pair has steadily recovered. Investors are becoming apprehensive before the United States Consumer Price Index (CPI) publication, causing them to pour money into safe-haven assets owing to their lackluster appetite for risky assets. As a result, the Loonie asset has extended its rebound solidly above 1.3370.


As the risk-appetite theme has deteriorated further, the US Dollar Index (DXY) has renewed its three-day high at 103.39. The S&P 500 futures have been influenced by geopolitical developments, including the Pentagon shooting down two unidentified flying objects in the last week and disappointing profits from US stocks.

The 10-year US Treasury rates have increased to 3.74% due to rising anticipation that the US inflation data, due out on Tuesday, would increase.

Expectations of a surprise increase in the inflation report are supported by the US labor market’s resilience in the face of tightening measures and Federal Reserve (Fed) interest rate increases. If the same happens, Fed Chair Jerome Powell could be forced to keep the monetary policy tightening phase going from March. Patrick Harker, president of the Philadelphia Fed, predicts that interest rates will rise above 5% in 2019.

AUD/USD hits 0.6900 amid Fed, mysterious items, US inflation, and Aussie job concerns.

Early on Monday, sellers of the AUD/USD currency pair target the 0.6900 support amid market caution after, shockingly, disregarding the strength of the US Dollar to record weekly gains the previous week.

The market was cautious due to the “unidentified objects” flying over the US and Chinese airspace and the US Federal Reserve (Fed) meetings. The pre-data attitude ahead of the US Consumer Price Index (CPI) for January, scheduled for release on Tuesday, may also impact the risk barometer pair.

The firing of unidentified objects by the US and China and the White House’s accusations against China for espionage seem to weigh the market mood and the risk-barometer AUD/USD pair. The US General recently told Australian customers that they have no cause to believe that the newest items are Chinese, allowing them to take a break. It’s interesting to note that the US shot down almost four of these objects while China is getting ready to shoot one in about a week.

However, Philadelphia Federal Reserve President Patrick Harker pushed down on rumors that the Fed might decrease interest rates in 2023. The policymaker did, however, state that the Fed “is not expected to reduce this year but may be able to do so in 2024 if inflation begins to abate.” Harker’s remarks aligned with Richmond Federal Reserve President Thomas Barkin and Fed Chairman Jerome Powell, who had earlier refrained from applauding the positive US employment data.

USD/JPY Price Analysis: Positive fundamentals and a technical tilt in favor of the bulls

As Asian stocks decline on Monday, USD/JPY may be poised to climb higher for this week’s first balancing range.


Investors are anxiously awaiting this week’s US Consumer Prices and Retail Sales statistics as they await the release of the US Air Force shooting down a flying object near the Canadian border, the fourth such item this month. Whether it resembled the giant white Chinese balloon that was shot down earlier this month was not confirmed by officials. Due to this, the MSCI’s broadest index of Asia-Pacific equities outside of Japan has been down by 0.1% to start the week, adding to the 2.2% loss from the previous week.

As the Yen lost some of its attraction as the currency of choice to finance so-called carry trades at the turn of last year, risk-off themes have tended to favor US Dollar lovers of the Japanese Yen. In the aftermath of the surprise action by the Bank of Japan in December, traders reduced their negative bets on it to the lowest level over four months. The BOJ shocked the markets by relaxing the restrictions on its yield-control strategy, which caused the currency to appreciate by about 5% the day after the announcement.

Please click here for the Market News Updates from 10 February, 2023.