2024-02-19 09:20

Market Update - 19 February 2024 The EUR/USD pair trades on a stronger note near 1.0785 for four straight days during the early European session on Monday. The decline of the US Dollar (USD) provides some support for the major pair. Two European Central Bank (ECB) policymakers said Eurozone inflation is heading back towards the 2% target, but the ECB needs further data to confirm before it can cut rates. Nonetheless, the FOMC Minutes and the Eurozone data, including the PMI and CPI inflation report could offer some hints about the inflationary trajectory. (FXStreet) USD/JPY edges lower to near 150.00 during the Asian session on Monday after registering a volatile session in the previous session. The Japanese Yen (JPY) cheers the improved Machinery Orders data from the country. However, the USD/JPY pair soared on better-than-expected Producer Price Index (PPI) data from the United States on Friday. However, gains were trimmed after dovish remarks on the Federal Reserve’s (Fed) policy from James Bullard, former president of the St. Louis Fed. (FXStreet) The GBP/USD trends upwards as the US Dollar (USD) experiences downward pressure, influenced by market sentiment leaning towards the anticipation of a Federal Reserve rate cut in the upcoming March meeting. This sentiment was reinforced when former Fed official James Bullard suggested at the National Association for Business Economics (NABE) conference that the Fed should consider lowering interest rates to prevent hindering economic activity due to higher rates. During Asian trading hours on Monday, the GBP/USD pair trades higher around 1.2620. (FXStreet) The USD/CAD pair trades on a weaker note below 1.3500 during the early Asian session on Monday. US and Canadian markets are closed on Monday due to the President's Day holiday and Family Day, respectively. Investors will take more cues from the Canadian Consumer Price Index (CPI) for January, which is estimated to ease to 3.2% YoY from 3.4% in December. USD/CAD currently trades around 1.3480, gaining 0.02% on the day. (FXStreet) Indian Rupee (INR) gathers strength on Monday amid the decline of the US Dollar (USD). The positive economic outlook of India provides some support to the INR. The International Monetary Fund (IMF) said in its latest World Economic Outlook update that economic growth in India was projected to remain strong at 6.5% in both 2024 and 2025. (FXStreet) EUR/GBP is closing in on multi-month support and traders should be aware of the multiple attempts to break lower. Traders should look for a reaction higher before considering any trade. A confirmed break of support will leave 0.8500 as the next level for traders to watch. (DailyFX) The West Texas Intermediate (WTI) oil price retraces its recent gains, possibly due to a technical correction, amid subdued trading activity due to the Presidents’ Day holiday in the United States. WTI price dips lower to around $77.80 per barrel during Asian trading hours on Monday. Additionally, market participants are expected to closely monitor demand conditions in China after returning from the week-long holiday. (FXStreet) Gold price continues to move on an upward trajectory, trading higher around $2,020 per troy ounce during the early European session on Monday. The precious metal receives upward support from cautious investor sentiment amid speculation about the Federal Reserve's interest rate policy. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2024-02-16 09:32

Market Update - 16 February 2024 GBP/USD remains on the defensive around 1.2590 in Friday’s early European session. The UK Retail Sales came in stronger than expected, rising 3.4% MoM in January from a 3.3% decline in December. The weaker US Retail Sales in January prompted the possibility that the Fed might cut the interest rates sooner. Traders will monitor the US January Producer Price Index (PPI), due on Friday. (FXStreet) GBP/JPY gains ground ahead of a slew of data releases from the United Kingdom. UK Retail Sales (MoM) could improve to 1.5% from the previous 3.2% decrease. BoJ Governor Kazuo Ueda expects the monetary conditions in Japan to have remained accommodative. (FXStreet) The Japanese Yen stalls a two-day-old recovery trend from the YTD low touched on Tuesday. A positive risk tone and the uncertainty about BoJ’s policy shift undermine the safe-haven JPY. Reviving bets for an early rate cut by the Fed to cap the USD and act as a headwind for USD/JPY. (FXStreet) EUR/USD loses momentum near 1.0760 amid renewed USD demand. The pair keeps the bearish outlook unchanged below the key EMA; RSI indicator lies below the 50-midlines. The first resistant level will emerge at 1.0790; the key support level is seen at 1.0700. (FXStreet) USD/CAD gains ground as the US Dollar appreciates on risk aversion. US PPI data and the Consumer Sentiment Index are set to be released on Friday. US Retail Sales decreased 0.8% MoM in January against the expected decline of 0.1%. Lower WTI price contributes downward pressure for the Canadian Dollar. (FXStreet) NZD/USD breaks below the key level of 0.6100 after retreating from two days of gains. The pair could find the resistance zone around the 23.6% Fibonacci retracement level of 0.6124 and the 50-day EMA at 0.6128. 14-day RSI suggests the NZD/USD pair could test the key support area around the major level of 0.6050 and the weekly low at 0.6049. (FXStreet) WTI recovers to $77.50 on the weaker of the US Dollar. The International Energy Agency (IEA) said the crude market could be in surplus throughout 2024. The escalating Middle East geopolitical tension might lift WTI prices as it disrupts crude supplies. Oil traders will monitor the US January Producer Price Index (PPI), due on Friday. (FXStreet) Gold price ticks higher amid subdued US Dollar price action, albeit lacks follow-through. Reviving bets for an early Fed rate cut and geopolitical risks lend support to the commodity. Rising US bond yields act as a tailwind for the USD and cap the upside for the XAU/USD. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2024-02-15 09:36

Market Update - 15 February 2024 EUR/USD continues to gain ground due to risk-on market sentiment. The Euro avoided to react on remarks from the ECB President Christine Lagarde. ECB's forward-looking wage tracker maintains its indication of robust wage pressures. FedWatch Tool suggests around 90% and 59% probability of rate adjustment in March and May.(FXStreet) USD/CAD drifts lower for the second straight day amid a modest USD downtick. Sliding Oil prices undermine the Loonie and should help limit any further losses. The technical setup warrants caution before positioning for a meaningful decline. (FXStreet) GBP/JPY extends this week’s corrective decline from the 190.00 mark or a multi-year top. A technical recession in the UK revives bets for an early BoE rate cut and weighs on the GBP. Verbal intervention from Japanese authorities benefits the JPY and contributes to the downfall. (FXStreet) The Japanese Yen attracts some follow-through buying amid intervention fears. Bulls seem unaffected by data showing that Japan’s economy contracted in Q4. Delayed Fed rate cut bets lend support to the USD and limit losses for USD/JPY. (FXStreet) USD/CHF loses ground as US Dollar declines on US yields. The risk appetite is improved on mild remarks from the Fed officials. The Swiss Franc faced pressure as Swiss inflation slowed in January. (FXStreet) US Dollar Index faces challenges due to subdued US Treasury yields. The risk appetite is improved possibly on remarks from Fed officials. FedWatch Tool suggests a 90% chance of no rate adjustment by the Fed in March. (FXStreet) GBP/USD recovers some lost ground around 1.2568 on the downbeat UK CPI data. Fed officials are anticipated to maintain a cautious approach as they further evaluate the trajectory of inflation in the coming months. The UK Consumer Price Index (CPI) increased by 4% year-on-year in January, worse than the market expectation of 4.2%. Traders will closely monitor the UK Gross Domestic Product (GDP) for Q4 and US Retail Sales, due on Thursday. (FXStreet) AUD/JPY faces some selling pressure near 97.43 following the downbeat Australian employment data. The Australian Unemployment Rate rose to 4.1%, the highest since January 2022. Japan's economy entered a technical recession after shrinking in the fourth quarter (Q4) of 2023. (FXStreet) WTI remains under some selling pressure for the second straight day on Thursday. A spike in US inventories overshadows geopolitical risks and weighs on Oil prices. The OPEC sees a rise in global demand in 2024, 2025, albeit fails to lend support. (FXStreet) Gold price attracts some buyers amid sliding US bond yields and subdued USD price action. Geopolitical tensions in the Middle East further lend support to the safe-haven XAU/USD. Delayed Fed rate cut bets could underpin the USD and cap gains for the non-yielding metal. (FXStreet) Silver price seems steady above $22 while US Dollar corrects. Fed Goolsbee said one-time persistent inflation is insufficient to temper long-term downtrend. The US Retail Sales data will guide the Silver price. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2024-02-14 09:11

Market Update - 14 February 2024 EUR/USD hovers around 1.0710 during the Asian session on Wednesday, maintaining its position after dropping to three-month lows. The US Dollar (USD) garnered support following the release of robust US inflation data for January, which dampened expectations of an imminent rate cut by the Federal Reserve (Fed) in March. (FXStreet) The GBP/USD pair attracts some dip-buying during the Asian session on Wednesday and for now, seems to have stalled the previous day's sharp pullback from the vicinity of the 1.2700 mark, or over a one-week top. The uptick, however, lacks bullish conviction, with spot prices struggling to capitalize on the move beyond the 1.2600 round figure ahead of the UK CPI report. (FXStreet) The USD/CHF pair delivers a moderate corrective move from an 11-week high of 0.8880 in the late Asian session on Wednesday. The corrective move seems profit-booking after a strong rally inspired by January's sticky United States inflation data. Therefore, more upside in the Swiss Franc asset is anticipated. (FXStreet) USD/CAD retreats after Tuesday’s surge, edging lower to near 1.3550 during the early European session on Wednesday. The decline in the US Dollar (USD) is attributed to the decrease in US Treasury yields, thereby weakening the USD/CAD pair. (FXStreet) Indian Rupee (INR) loses traction on Wednesday amid the firmer US Dollar (USD). The uptick of the pair is supported by stronger-than-expected US inflation data, which prompts investors to further push back expectations on when the Federal Reserve (Fed) will cut its interest rate. (FXStreet) The EUR/GBP cross gains traction above the 0.8500 psychological mark during the early European trading hours on Wednesday. The weaker-than-expected UK economic data exerts some selling pressure on the Pound Sterling (GBP) and acts as a tailwind for EUR/GBP. The cross currently trades near 0.8523, adding 0.21% on the day. (FXStreet) The EUR/JPY cross loses momentum during the early European session on Wednesday. Some verbal intervention from the Japanese authorities boosts the Japanese Yen (JPY) and weighs on the EUR/JPY cross. Investors await the Eurozone Gross Domestic Product (GDP) for the fourth quarter. This event might trigger volatility in the market. At press time, the cross is trading at 161.23, down 0.14% on the day. (FXStreet) The GBP/JPY cross meets with some supply during the Asian session on Wednesday and erodes a part of the previous day's strong gains to the 190.00 psychological mark, or its highest level since August 2015. Spot prices currently trade just above the mid-189.00s, down over 0.10% for the day, though any meaningful corrective decline still seems elusive. (FXStreet) West Texas Intermediate (WTI) oil price is on a path to resume its winning streak, trading around $77.50 per barrel during the Asian trading hours on Wednesday. Despite facing challenges, the price of Crude oil has recovered its intraday losses. (FXStreet) Gold price (XAU/USD) drops below the $2,000 psychological mark during the early Asian session on Wednesday. The stronger US inflation data exerts some selling pressure on the yellow metal as it diminishes hopes of an early rate cut. The gold price currently trades around $1,992, unchanged for the day. (FXStreet) Silver (XAG/USD) remains under some selling pressure for the second successive day and slides back closer to the YTD trough during the first half of the European session on Wednesday. The white metal currently trades below the $22.00 round figure and seems to extend the depreciating move. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2024-02-13 09:14

Market Update - 13 February 2024 The EUR/USD pair trades on a negative note for the second consecutive day during the early European session on Tuesday. Markets turn to a cautious mood ahead of the US key data. The US Consumer Price Index (CPI) is due later on Tuesday. The softer US inflation data could potentially boost the Fed's confidence that inflation will return to its target and weigh on the US Dollar (USD). At press time, EUR/USD is trading at 1.0766, losing 0.07% on the day. (FXStreet) USD/JPY continues its upward trajectory, nearing 149.50 during Tuesday's Asian trading session. The Japanese Yen (JPY) weakens against the US Dollar (USD) amid market apprehension regarding rate hikes following the Bank of Japan's (BoJ) departure from its ultra-dovish monetary policy stance. (FXStreet) The GBP/USD pair consolidates in a narrow trading band above the 1.2600 mark during the early Asian session on Tuesday. The UK labor market and US inflation report will be in the spotlight later in the day. These events could trigger volatility in the market. At press time, GBP/USD is trading at 1.2626, down 0.02% on the day. (FXStreet) USD/CAD breaks a five-day declining trend as the US Dollar (USD) strengthens, with traders adopting a cautious stance ahead of the release of United States (US) inflation data scheduled for Tuesday. During the Asian session, the USD/CAD pair trades higher around 1.3460. (FXStreet) NZD/USD continues to decline for the second consecutive session, reaching near 0.6110 during the Asian trading session on Tuesday. The New Zealand Dollar (NZD) faces pressure against the US Dollar (USD), partly due to lower Kiwi inflation expectations in the first quarter. RBNZ Inflation Expectations (QoQ) increased by 2.5%, down from the previous reading of 2.7%. (FXStreet) Indian Rupee (INR) weakens on Tuesday amid a stronger US Dollar (USD) and a bounce back in crude oil prices. The Indian economy showed evidence of resilience at the start of the year, with Industrial Production improving and inflation falling, according to data published on Monday. (FXStreet) The EUR/GBP cross faces some selling pressure during the early European trading hours on Tuesday. The downtick of the cross is supported by the stronger-than-expected UK labor market data, which lifts the British Pound (GBP). At press time, EUR/GBP is trading at 0.8524, down 0.08% on the day. (FXStreet) The USD/JPY pair trades on a flat note during the early Asian session on Tuesday. The uncertainty about the timeline of interest rate cuts leads to the consolidation of the US Dollar (USD). Traders prefer to wait on the sidelines ahead of the US Consumer Price Index (CPI) data for January, which could offer some hints about when the Fed is likely to start cutting interest rates. As of writing, USD/JPY is trading higher by 0.02% on the day at around 149.35. (FXStreet) West Texas Intermediate (WTI) oil price extends its winning streak initiated on February 5, buoyed by heightened geopolitical tension in the Middle East. The price of Crude oil climbs towards $77.00 per barrel during the Asian session on Tuesday. Yemen’s Houthi rebels reportedly launched missiles at a ship headed for a port in Iran, resulting in minor damage to the vessel but no injuries to its crew, according to authorities. (FXStreet) Gold price moves on a downward trajectory that began on January 7, inching lower to near $2,020 per troy ounce during the Asian session on Tuesday. The precious metal is encountering resistance as the US Dollar strengthens for the second consecutive session, supported by subdued US bond yields in anticipation of the release of US inflation data on Tuesday. (FXStreet) Silver price (XAG/USD) trades back and forth in a narrow range around $22.70 in the late Asian session on Tuesday. The white metal struggles for a direction as investors await the United States Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT. (FXStreet) Source: FXStreet Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2024-02-09 09:44

Market Update - 09 February 2024 The EUR/USD pair continues with its struggle to move back above the 100-day Simple Moving Average (SMA) support-turned-resistance and remains below the 1.0800 mark through the early European session on Friday. The downside, however, remains cushioned in the wake of the recent hawkish remarks by several European Central Bank (ECB) officials and subdued US Dollar (USD) price action. Traders, however, seem reluctant to place aggressive directional bets and seek more clarity about the Federal Reserve's (Fed) rate hike path. (FXStreet) The GBP/USD pair struggles to capitalize on the previous day's goodish bounce of around 50 pips from the 1.2570 region and oscillates in a narrow band during the Asian session on Friday. Spot prices currently trade near the top end of the weekly range, around the 1.2620 area, and draw support from a modest US Dollar (USD) downtick. (FXStreet) USD/CHF retraces its recent losses as the US Dollar (USD) strengthens amid heightened geopolitical tensions in the Middle East, edging higher to around 0.8740 during Friday's Asian market session. Israeli airstrikes targeted the southern border city of Rafah on Thursday. (FXStreet) USD/CAD halts its four-day losing streak as the US Dollar (USD) improves on market caution amid an escalated geopolitical tension in the Middle East. Additionally, the decline in Crude oil prices is contributing to downward pressure on the Canadian Dollar, consequently, underpinning the USD/CAD pair with trading around 1.3460 during the Asian session on Friday. Moreover, West Texas Intermediate (WTI) oil price tries to snap its four-day winning streak, edging lower to near $76.20 per barrel. (FXStreet) The NZD/USD pair climbs to near 0.6130 in the London session on Friday. The Kiwi asset strengthens as investors see the Reserve Bank of New Zealand (RBNZ) tightening interest rates further due to persistent price pressures and steady labor demand. (FXStreet) AUD/JPY moves on an upward trajectory for the fourth consecutive session, edging higher to near 97.20 during the European hours on Friday. The sentiment of the JPY’s traders shifted to bearish following the dovish remarks from Bank of Japan (BoJ) Deputy Governor Uchida Shinichi on Thursday. He stated that the central bank would not pursue aggressive rate hikes upon ending negative rates. (FXStreet) USD/MXN extends its upward trend for the third consecutive day, trading around 17.15 during the European session on Friday. However, the USD/MXN pair gained ground on market caution due to the escalated tension in the Middle East. Israeli Prime Minister Benjamin Netanyahu's refusal of the ceasefire offer from Hamas added to the geopolitical uncertainty. (FXStreet) The EUR/JPY cross snap a two-day winning streak below the 161.00 psychological mark during the early European session on Friday. The cross attracts some intraday sellers following the German inflation data. Investors await German Buba President Nagel's speech later on Friday for fresh catalysts. At press time, EUR/JPY is trading at 160.90, down 0.02% on the day. (FXStreet) Indian Rupee (INR) trades weaker on Friday on the renewed US Dollar (USD) demand and higher US bond yields. The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) decided to keep the repo rate at 6.5% for the sixth consecutive time on Thursday. The decision was not unanimous this time, with the MPC deciding in favor of an unchanged rate by a 5:1 majority. (FXStreet) On Friday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1036 as compared to the previous day's fix of 7.1063 and 7.1996 Reuters estimates. (FXStreet) EUR/GBP: Retail trader data shows 79.61% of traders are net-long with the ratio of traders long to short at 3.90 to 1. Our data shows traders are now at their most net-long EUR/GBP since Jun 10 when EUR/GBP traded near 0.85. The number of traders net-long is 8.75% higher than yesterday and 8.56% higher from last week, while the number of traders net-short is 10.86% lower than yesterday and 3.11% lower from last week. (DailyFX) West Texas Intermediate (WTI) oil price tries to snap its four-day winning streak, edging lower to near $76.30 per barrel during the Asian session on Friday. However, Crude oil prices gained ground in early trading hours on Friday due to the escalated tension in the Middle East after Israel rejected a ceasefire offer from Hamas. (FXStreet) Gold price (XAU/USD) consolidates in a narrow trading band around $2035 region per troy ounce during the early Asian trading hours on Friday. Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, recovers above the 104.00 mark. The US Treasury yields edge higher, with the 10-year yield standing at 4.16%. (FXStreet) Silver (XAG/USD) builds on the previous day's goodish recovery from the $22.15 area, or over a two-week low and trades with a positive bias for the second successive day on Friday. The momentum lifts the white metal to the top end of its weekly range, around the $22.70 region during the first half of the European session, albeit lacks bullish conviction. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.