Daily Market Report - Thursday, Mar 09, 2023


EURUSD struggles for clear directions as it seesaws near the lowest levels in eight weeks. The reason for such a significant weakening was the substantial strengthening of the US dollar. However, the pair slightly rebounded to above 1.0560 but the future direction will depend on NFP figures released on Friday.

EURO has been under intense selling pressure since Tuesday after the aggressive speech from Fed Chair Jerome Powell. In the coming days, the currency pair needs to stay above 1.0600 to have a chance to develop upside momentum in the near term. On the downside, 1.0500 and 1.0470 are the crucial demand area to watch.


European and UK shares opened lower Thursday continuing the theme from the previous session as investors across the globe remain concerned about the impact of aggressive monetary policy tightening on economic growth. Moving ahead, the market participants and investors will now turn their attention to the U.S. NFP data that might influence the Federal Reserve’s decision on whether to act more aggressively.

On the earnings front, Oracle, DocuSign and Gap are amongst those reporting the last quarter's financial results today.


Crude oil futures remain under pressure despite inventory drop. The recent strong bearish sentiment fueled by Fed Chairman Jerome Powell's hawkish stance encouraged dollar bulls and pressured commodity prices lower. The latest EIA data showed the US crude inventories unexpectedly fell by 1.7 million barrels last week, the first decline this year.


In the currency market, the British pound struggling to find strong upside momentum as the US Dollar remains strong. The sustainability of any gain in the currency pair in the coming days will largely depend on how the US dollar behaves. Meanwhile, the dollar index slightly reversed from the highs as the US Dollar consolidated against its rivals after climbing to 8- a week high early this week. However, the overall momentum remains bullish.


A strong U.S. dollar and rising interest rates are creating headwinds for gold. During the previous session, the metal rebounded back to above $1820 but failed to extend the gains as a stronger dollar and higher interest rates continued to hammer investment demand in the precious metals. Gold is highly sensitive to rising interest rates since higher rates dent gold's appeal as they increase the opportunity cost of holding non-yielding bullion.

Economic Outlook

On the data front, China's consumer inflation slows on weaker demand. China Feb CPI inflation slowed to just 1% from 2.1% in Jan with core inflation at just 0.6% and food price inflation down sharply.

Technical Outlook and Review

For today, 1.0530 is the immediate support level, followed by 1.0500. If the pair breaks below 1.0520, the slump will quickly extend toward the 1.0480 mark. On the upper side, the euro is likely to find immediate resistance at 1.0570 and then 1.0600.

The important levels to watch for today: Support- 1.0530 and 1.0500 Resistance- 1.0570 and 1.0600.

GOLD: From a technical perspective, gold is maintaining a negative bias according to the weekly chart. If the bearish momentum continues, then the next key support area to watch is $1806 then $1800. On the upper side, If the metal regains upside momentum and presses back above $1820 then the key resistance area to watch is $1830 and $1835.

The important levels to watch for today: Support- 1806 and 1800 Resistance- 1820 and 1826.

Quote of the day – I think investment psychology is by far the most important element, followed by risk control, with the least important consideration being the question of where you buy and sell – Tom Basso.
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