January 26, 2023 10:10 GMT
Price Action Shallow, With USD a Touch Firmer Pre-GDP
- The greenback is on the front foot early Thursday, rising against most others in G10. Market moves are shallow so far, keeping prices well within recent ranges. A more constructive equity market backdrop has shored up USD/JPY, which is posting a near 100 pip recovery off the overnight lows. The Y130.00 handle marks the next hurdle for the pair, and a break above opens progress toward the 130.78 20-day EMA.
- NOK sits on top of the G10 pile, benefiting from firmer energy prices (WTI and Brent trade higher by 0.5% apiece). USD/NOK holds below 9.90 and the bearish developments across moving averages are continuing to add weight. Earlier this week, the 50-dma slipped below the 200-dma to form a death cross for the first time since the onset of the COVID pandemic in 2020.
- Advanced Q4 GDP from the US takes focus going forward, with the annualized quarterly figure seen clocking in at 2.6% - below the prior quarter's 3.2% clip. Weekly US jobless claims data and December new home sales make up the rest of the calendar. With the Fed remaining inside the pre-meeting media blackout period, the speaker slate is light Thursday.