In this article, we have covered the highlights of global market news about the GBP/USD, EUR/USD, NZD/USD and AUD/USD.
GBP/USD Price Analysis: Rebounds from 50-HMA inside the weekly range
During the first hour of Wednesday’s London open, GBP/USD recovers from the intraday low of 1.2145. Nonetheless, the Cable pair continues to trade between 1.2135 and 1.2205 for the whole week.
The repercussions of repercussions are discussed. The slow MACD indications, however, point to a continuation of the grind inside the previously noted 70-pip range that has been in place since Monday.
Yet, the 1.2135 support is strengthened by an upward-sloping trend line from the previous Wednesday.
It should be noted that before handing the GBP/USD bears control, the 100-HMA and the 200-HMA, located respectively at 1.2060 and 1.2000 in that order, serve as additional downward filters.
In contrast, a successful breach of 1.2205 permits buyers of the Cable pair to go for the mid-February high at 1.2270.
The 1.2300 may serve as an interim stop before indicating the 1.2445-50 significant horizontal obstacles that constrained the pair’s upside throughout late 2022 and early 2023, should the GBP/USD price continue higher over 1.2270.
Despite the fall from a one-month high the previous day, GBP/USD is still seen favorably by bulls overall.
EUR/USD is expected to consolidate further in the short future – UOB
According to UOB Group economist Lee Sue Ann and market strategist Quek Ser Leang, EUR/USD is anticipated to continue trading in the range of 1.0560-1.0800 over the following weeks.
“Our hopes for EUR to nudge higher did not materialize,” said the 24-hour perspective, as the currency fluctuated between 1.0677 and 1.0749 before finishing essentially unchanged at 1.0732 (+0.03%). We continue to see an opportunity for EUR to go higher since the underlying tone still seems firm. Notwithstanding this, it is not anticipated that the big resistance at 1.0800 will be in danger (another resistance level at 1.0770). Support is located around 1.0705; a break of 1.0680 would reduce the current slight upward pressure.
Upcoming 1-3 weeks: “On Monday (March 13, spot at 1.0685), we indicated that the recent price action is likely part of a consolidation range, and we kept the opinion that EUR is expected to move between 1.0560 and 1.0800 for the time being. We are still of the same opinion. Despite this, the short-term underlying tone seems to remain robust, and in the next one to two days, there is a chance that the EUR will go up and reach 1.0800. A sustained increase of over 1.0800 at this time seems doubtful.
NZD/USD finds it challenging to get over 0.6250 as the Dollar Index improves before US Retail Sales and PPI
In the early European session, NZD/USD struggled to extend its rebound over the immediate barrier of 0.6250. While the US Dollar Index (DXY) attempts to rebound, the Kiwi asset has detected barriers at 0.6250, slowing the upward movement.
The Dollar Index has drawn bids and moved over 103.60 after recording a new monthly low at 103.44. The Federal Reserve (Fed) is likely to avoid the option of making a larger rate announcement as US inflation has slowed, the unemployment rate has risen, and the US economy’s confidence has been severely damaged following the catastrophic collapse of Silicon Valley Bank. This suggests the USD Index has a strong downside bias (SVB).
After indicating slight losses in early Asia, S&P500 futures have turned positive. Investors hailed the lowering inflation trend, which led to reduced prospects of a rate rise from the Federal Reserve of 50 basis points (bps). The 500-US stock basket reported exceptional gains on Tuesday. Although the market has differing opinions on the US Consumer Price Index, the return on 10-year US Treasury rates remains strong at over 3.67%. (CPI).
Bulls associated with risk-sensitive assets were set free by Tuesday’s US CPI release as a decline in headline inflation to 6.0%, as expected, increased the likelihood that Federal Reserve chair Jerome Powell will raise interest rates only slightly at his upcoming monetary policy meeting, which is scheduled for next week.
AUD/USD Price Analysis: 0.6700 challenges as risk-on sentiment strengthens
In the Asian session, the AUD/USD pair has rallied close to the round-level resistance of 0.6700. The Australian asset is battling to maintain its gains in the future. Still, the upside seems more favorable as the US Dollar Index (DXY) has lost more appeal after the expected decrease in the US Consumer Price Index (CPI).
After setting a new monthly low of 103.44, the US Dollar Index (DXY) has begun to rise. Investors anticipate extreme volatility from the Dollar Index as they wait to publish the US Retail Sales and Producer Price Index (PPI) data.
The employment statistics released on Thursday are expected to influence the Australian Dollar. The following are the results of a survey conducted by the American Psychological Association. Moreover, the unemployment rate is predicted to decrease from the previously released 3.7% to 3.6%.
The AUD/USD exchange rate is very close to the horizontal resistance line drawn from the low point on February 27 at 0.6700. Market players are pushing the Australian asset down; therefore, following a definitive move, investors should construct positions.
The Australian Dollar is supported by the 20-period exponential moving average (EMA), increasing at a rate of 0.6680.
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