4 Global Market Updates- 5 January, 2023

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

NZD/USD mixed outlook: UOB

The forecast for NZD/USD remains mixed, with the pair trading between 0.6200 and 0.6380 for the time being, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

“NZD regained the majority of its previous day’s severe decline as it rocketed to 0.6353 before relaxing to settle higher by 0.70%,” the 24-hour perspective said (0.6291). The price movements are probably part of a consolidation phase, and the NZD will probably trade today between 0.6255 and 0.6355.

Within the next three weeks: “The recent choppy market movements have produced a mixed picture. For the time being, we anticipate the NZD to trade in a wide range between 0.6200 and 0.6380.

GBP/USD is now seeing short-term consolidation – UOB

According to market strategist Quek Ser Leang and economist Lee Sue Ann of UOB Group, GBP/USD is currently anticipated to trade in the band of 1.1900-1.2150 during the following weeks.


24-hour perspective: “After falling significantly on Tuesday, GBP recovered and finished up 0.76%.” (1.2059). Since there is no downward pressure, GBP has entered a consolidation period. In other words, the GBP will move sideways today and is predicted to be between 1.2000 and 1.2115.

Within the next one to three weeks: “We see the current GBP movement as a consolidating period. For the time being, GBP will trade between 1.1900 and 1.2150.

EUR/USD is projected to find sturdy support around 1.0510 – UOB

Markets Strategist Quek Ser Leang and Economist Lee Sue Ann of UOB Group predict that the EUR/USD will soon find significant support around the area of 1.0510.

24-hour view: “EUR finished higher by 0.50%, recovering some of Tuesday’s sharp decline” (1.0599). The action is a consolidation, and today’s range for the EUR is predicted to be between 1.0565 and 1.0655.

Within the next three weeks: “After the sudden decline on Tuesday (03 Jan), negative momentum is cautiously starting to develop. The euro is projected to trade with a tendency to fall, although any decrease is anticipated to run into strong support near 1.0510. Overall, the only way to tell whether the negative momentum has peaked is if it breaches the strong resistance’ level, now at 1.0675.

USD/CAD maintains advances over the 1.3500 level and easily stands above the 100-day SMA.

In the proximity of the support provided by the 100-day SMA, the pair draws some buyers and stages a moderate recovery from a one-month low reached earlier this Thursday. The pair maintains its intraday rebound gains through the early European session and is trading slightly above the psychological level of 1.3500.


The safe-haven US Dollar is helped to gain momentum by a milder risk tone, therefore driving the USD/CAD pair higher. Despite China’s relaxation of the severe COVID-19 restrictions, fears of a worsening global economic crisis continue to weigh on investor mood and restrain market optimism. However, several reasons might prevent US Dollar bulls from making aggressive wagers and temporarily limit the major’s rise.

The December FOMC policy meeting’s minutes revealed that all participants agreed to gradually raise borrowing rates. The Fed’s likelihood of further gradual rate increases is strengthened by the fact that US Treasury bond rates are still very close to the three-week low reached on Wednesday. The US Dollar should see a headwind as a result. In addition, a rise in crude oil prices might support the commodity-linked Loonie, which should alarm USD/CAD bulls.

Traders are now focusing on the US economic calendar, which includes publishing the Weekly Initial Jobless Claims report and the ADP data on private-sector jobs. This will fuel USD demand and give the USD/CAD pair some momentum, coupled with US bond rates and the general risk attitude. In addition, oil price changes may provide possibilities for short-term trading. However, the spotlight is still on the US and Canadian monthly employment reports coming on Friday.

Please click here for the Market News Updates from 4 January, 2023.