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MTrading Team • 2023-06-16

EURUSD represents boring markets after ECB, Fed actions

EURUSD represents boring markets after ECB, Fed actions

Global traders take a breather during early Friday, after key central banks infused the market’s volatility during the week. While EURUSD aptly portrays the trader’s lazy attitude, the USDJPY manages to cheer the BoJ’s inaction and lead the major currency pairs despite the inactive US Dollar. That said, the traders remain mostly unconvinced of the Fed’s efforts to please hawks without offering a rate hike. The same joins mixed concerns about China keeping the Commodities and Antipodeans on a dicey floor.

Yields and stocks grind higher after the storm but cryptos are struggling to cheer the US Dollar’s weakness and impressive industry news amid looming regulatory woes.

Gold Price struggles to defend the previous day’s bounce off a three-month low whereas Brent Oil also eases near the weekly top. Further, NZD becomes the most falling currency among the G10 members, after JPY, as NZ PMIs came in disappointing while AUD follows suit without much to react.

It should be noted that the last blow to the market is still pending, even after the BoJ, as the US consumer-centric figures will be observed closely for clear directions.

Following are the latest moves of the key assets:

  • Brent oil prints mild losses near $75.40 at the latest.
  • Gold price struggles to defend the bounce off three-month low near $1,960 as we write.
  • USD Index recovers from a five-week low, snaps three-day downtrend at 102.30.
  • Wall Street closed with notable gains and so did the Asia-Pacific shares but the equities in the UK and Europe remain mildly bid by the press time.
  • BTCUSD and ETHUSD recover from the lowest levels since March to near $25,500 and $1,670 respectively at the latest.
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Nothing major than BoJ

BoJ offered the much-needed shake to the markets as the majority of the traders were mostly in a Friday mood after working hard to play with all the key events. Even so, the Japanese central bank’s refrain from changing monetary policy, as well as hesitance to respect the rising inflation, fail to offer an otherwise volatile reaction of the USDJPY. Still, the Yen pair refresh a yearly high and rise the most among the major pairs.

On the other hand, is the EURUSD which is in disbelief with both, namely the ECB and the Fed, as both tried to please hawks and lacked the reaction afterward, even if the Euro responded more rigorously and weighed on the US Dollar on Thursday.

Elsewhere, fears of China’s slower recovery gain momentum after the nation keeps saying that it’ll take measures to keep its title of the world’s second-biggest economy by infusing domestic demand.

It should be noted that the blockchain ETF for Bitcoin and hopes of lesser hardships for the crypto traders failed to entertain the BTCUSD and ETHUSD bulls even if they keep the reins of late.

  • Strong buy: USDCAD
  • Strong sell: ETHUSD, GBPUSD, Gold
  • Buy: USD Index, Nasdaq, USDJPY

Mid-tier US data to end the volatile week

University of Michigan’s Consumer Sentiment Index and inflation expectations are the final blow to the markets that can cheer the heavy volatility. However, the mixed feeling from the Fed and cautious mood ahead of next week’s PMIs, as well as Fed Chair Powell’s testimony, may limit the trader’s reaction to the data.

May the trading luck be with you!