2024-02-08 10:27

EUR/USD attracts buyers for the third straight day and climbs to a fresh weekly top. A combination of factors undermines the USD and acts as a tailwind for the major. ECB rate cut bets might cap gains amid a bearish technical setup on the daily chart. (FXStreet) GBP/USD moves on an upward trajectory amid a bearish sentiment. The major level around 1.2650 lined up with the 14-day EMA at 1.2656 emerges as the immediate barrier. The psychological level at 1.2600 could act as a key support level. (FXStreet) USD/CAD attempts recovery from 1.3450 while the broader market mood remains quiet. Fed policymakers need more evidence to gain confidence about inflation declining towards 2%. Canadian jobless rate is seen as higher due to the restrictive monetary policy stance of the Bank of Canada. (FXStreet) USD/CHF depreciates as US Treasury yields lose ground on risk appetite. Risk-on mood improves despite the US Fed’s hawkish stance on interest rate trajectory. The appreciation of the CHF curbs Swiss inflation by lowering the cost of imported goods and services. (FXStreet) NZD/USD gains ground on improved risk appetite. The pair could reach the 23.6% Fibonacci retracement at 0.6125 and the 50-day EMA of 0.6136. A break below the psychological support of 0.6100 could lead the pair to revisit the weekly low at 0.6038. (FXStreet) USD/CNH attempts to retrace its recent gains on the subdued US Dollar. Chinese CPI declined by 0.8% YoY against the expected 0.5% decline. Fed members’ comments suggest to keeping interest rates elevated until inflation sustainably returns to the 2% target. (FXStreet) AUD/JPY gains positive traction for the third straight day and climbs to a fresh weekly peak. RBA’s warning of more rate hikes and China’s steps to stabilize markets underpin the Aussie. A positive risk tone weighs on the safe-haven JPY and remains supportive of the momentum. (FXStreet) WTI price could gain ground as Israel has dismissed Hamas' offer for a ceasefire. EIA Crude Oil stockpiles came in at 5.521 million barrels against the expected 1.895 million barrels. The largest US oilfield, the Permian shale basin, is projected to experience its slowest annual growth since 2021. (FXStreet) Gold price continues with its struggle to gain traction and remains confined in range. The uncertain Fed rate cut path is holding back traders from placing directional bets. Subdued USD demand and a positive risk tone also do little to provide any impetus. (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.

2024-02-07 08:56

EUR/USD could gain further towards the psychological barrier at the 1.0800 level. Technical analysis suggests a confirmation of a bearish sentiment for the pair. The pair can find the major support around 1.0750 followed by the weekly low at 1.0722. (FXStreet) GBP/USD gains traction for the second consecutive day around 1.2608 on Wednesday. The expectation of interest rate cuts from the Federal Reserve (Fed) has waned due to the stronger-than-expected US economic data. The potential technical recession in the UK economy might lead Bank of England (BoE) officials to shift to a dovish interest rate stance. (FXStreet) AUD/USD trades in positive territory for two straight days on Wednesday. Fed’s Mester said she might open the door to rate cuts if the US economy performs as she expects. The Reserve Bank of Australia (RBA) kept interest rates steady at 4.35% on Tuesday. (FXStreet) USD/CAD drifts lower for the second straight day and is pressured by a combination of factors. An uptick in Oil prices underpins the Loonie and weighs on the pair amid a modest USD downtick. Hawkish Fed expectations should act as a tailwind for the USD and help limit any further losses. (FXStreet) US Dollar Index loses ground on downbeat US bond yields. Fed’s Powell tempered expectations of a rate cut in March. Fed Bank of Cleveland President Loretta Mester stated that the US central bank could consider interest rate cuts later in the year. (FXStreet) USD/CHF moves above towards the psychological level of 0.8700. US Dollar registers losses due to weaker US bond yields. Swiss Unemployment Rate (YoY) increased by 2.5% in January against the 2.3% prior. (FXStreet) EUR/GBP falls to near 0.8530 as soft Eurozone data deepen ECB rate-cut bets. ECB Cos is confident about inflation declining towards the 2% target. UK companies are becoming optimistic about BoE’s rate-cut prospects. (FXStreet) AUD/JPY gained ground on RBA’s hawkish stance on monetary policy. RBA Governor Michele Bullock did not rule anything in or out regarding policy decisions. Japan's Foreign Reserves decreased to $1,291.8 billion in January from the previous figure of $1,294.6 billion. (FXStreet) NZD/USD scales higher for the second straight day in reaction to the upbeat domestic jobs data. A modest downtick in the US bond yields undermines the USD and lends support to the major. The technical setup favours bears and warrants caution before positioning for additional gains. (FXStreet) WTI price gained ground as EIA projected US oil production to increase by 170K bpd in 2024, lower than the previous estimate of 290K bpd. API Weekly Crude Oil Stock recorded a figure of 0.674 million barrels against the expected 2.133 million barrels. Hamas has responded to a proposed ceasefire plan; US Secretary of State Antony Blinken may discuss it with Israeli officials on Wednesday. (FXStreet) Gold price fails to build on overnight positive move amid hawkish Fed expectations. A modest downtick in the US bond yields undermines the USD and lends some support. The uncertainty over the Fed's policy outlook holds back bears from placing fresh bets. (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.

2024-02-06 10:42

USD/CHF takes a breather after two days of a winning streak. Swiss Franc could receive support from the improved 10-year Swiss bond yield. US Dollar made profits on the Fed Powell’s rejection of rate cut in March amid upbeat economic data. (FXStreet) USD/CAD recovery loses steam near 1.3510 ahead of the Canadian PMI data. The pair resumes its uptrend above the key EMA; RSI indicator is above the 50.0 midlines. The first upside target is seen at 1.3545; the initial support level is located at 1.3460. (FXStreet) EUR/USD faced trouble after weaker EU PPI data on Monday. The improved US ISM Services data supported the US Dollar. Fed’s Powell emphasized monitoring inflation's sustained trajectory toward the 2% core target. (FXStreet) EUR/GBP faces a challenge as the BoE is expected to avoid rate cuts in its upcoming meeting. BoE Chief Economist Huw Pill called the expectation of interest rate cut premature. OECD anticipated EU inflation to persist above the ECB's 2% target until some point after 2025. (FXStreet) AUD/JPY gains strong positive traction on Tuesday, though the upside potential seems limited. The AUD strengthens after the RBA decided to leave the Official Cash Rate (OCR) unchanged. China’s economic woes and geopolitical risk might keep a lid on any further gains for the cross. (FXStreet) EUR/JPY edges lower to 159.60 amid the BoJ’s hawkish tilt and safe-haven flows. Investors anticipate the ECB to embark on the first rate cut at the June meeting. BoJ policymakers hinted about the monetary policy shift, which lifts the Japanese Yen. The Eurozone Retail Sales will be released later on Tuesday. (FXStreet) AUD/NZD attracts some dip-buying after the RBA announced its policy decision this Thursday. Expectations that the RBA’s tightening cycle is over keep a lid on any further gains for the cross. The technical setup favours bearish traders and supports prospects for deeper near-term losses. (FXStreet) NZD/USD falls back from 0.6070 as the broader market sentiment is risk-averse. The Fed is not expected to rush for aggressive rate cuts. The NZ Q4 labor market conditions are expected to remain downbeat. (FXStreet) USD/MXN loses ground as US Dollar declines due to weaker US yields. Mexican Peso could weaken on future economic policies from the new administration. The Greenback strengthens on Fed’s hawkish stance on interest rate trajectory. (FXStreet) WTI prices attract some buyers near $72.90 amid the ongoing Middle East tension. The upbeat US economic data might convince the Federal Reserve (Fed) to keep its benchmark rate higher for longer. The US launched retaliatory airstrikes on Friday against Iran’s Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria. (FXStreet) Gold price attracts some haven flows amid the cautious market mood, albeit lacks follow-through. Hawkish Fed expectations help limit a modest USD pullback from a multi-month top and cap gains. Traders now look forward to speeches by influential FOMC members for short-term opportunities. (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

2024-02-05 10:30

EUR/USD drops to a fresh YTD low and is pressured by a combination of factors. The USD builds on the post-NFP rise and touches its highest level since December. Bets for an April rate cut by the ECB continue to undermine the shared currency. (FXStreet) GBP/USD lost ground as US Dollar surged after blockbuster US jobs data. US Nonfarm Payrolls added 353K jobs in January against the expected 180K. Fed Chair Jerome Powell reiterated that the March meeting is too soon to start rate cuts. BoE’s Huw Pill mentioned that the right time for the rate cuts is probably still some time away. (FXStreet) USD/CAD could surpass the psychological barrier at 1.3500 followed by January’s high at 1.3541. Technical indicators suggest a bullish confirmation towards the major support at 1.3550. The pair could find the support zone around the 50-day EMA at 1.3456 aligned with the major support at the 1.3450 level. (FXStreet) USD/CHF continues to move on an upward trajectory after the blockbuster US Nonfarm Payrolls data. Fed’s Powell restated that initiating rate cuts in the March meeting may be premature. The Swiss National Bank is expected to initiate a rate cut in September 2024. (FXStreet) The US Dollar Index (DXY) trades on a stronger note around 104.02 on Monday. The Fed chair reiterated that the next meeting in March was too early for a rate cut. The US Nonfarm Payrolls (NFP) for January rose to 353K from 333K in December, stronger than expected. (FXStreet) NZD/USD recovers from 0.6050 as US Dollar struggles to extend recovery ahead of US Services PMI data. The market mood is downbeat as robust US labor demand has dampened the Fed’s early rate-cut prospects. Weak NZ Employment data would allow RBA policymakers to lean towards a dovish policy stance. (FXStreet) USD/MXN gains ground as solid US labor data increases the possibility of no rate cut in March by the Fed. The recent remarks from the Fed suggest that the central bank is not inclined to pursue a rate cut in March. Market experts forecast a weakening of the Mexican Peso throughout 2024, citing uncertainties surrounding the economic policies. (FXStreet) AUD/JPY snaps its recent gains as the safe-haven Japanese Yen improves on escalated geopolitical tension. White House national security adviser Jake Sullivan warned that US airstrikes were just the beginning. Australian Dollar faces challenges as the S&P/ASX 200 Index retreats from last week's record high ahead of RBA’s interest rate decision. (FXStreet) WTI drifts lower for the fourth straight day and drops to a near three-week low on Monday. Bets for less aggressive rate cuts by the Fed underpin the USD and weigh on the black liquid. A further escalation of military action in the Middle East does little to ease the bearish pressure. (FXStreet) Gold price drifts lower for the second straight day amid reduced bets for aggressive Fed easing. Rising US bond yields continue to underpin the USD and exert some pressure on the XAU/USD. Geopolitical risks and China’s economic woes fail to lend support to the safe-haven commodity. (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.

2024-02-02 09:43

Market Update - 02 February 2024 EUR/USD consolidates on recent losses registered in the previous session, hovering around 1.0870 during the Asian session on Friday. The EUR/USD pair could find the immediate resistance zone around the 21-day Exponential Moving Average (EMA) at 1.0882 followed by the psychological level at 1.0900. (FXStreet) The GBP/USD pair struggles to capitalize on the previous day's solid recovery of around 130 pips from the 1.2625 area, or over a two-week low and oscillates in a narrow band during the Asian session on Friday. Spot prices currently trade near mid-1.2700s, closer to the weekly peak, as traders look to the US monthly jobs report before placing fresh bets. (FXStreet) The USD/CAD pair holds below the 1.3400 mark during the early European trading hours on Friday. The decline in the US Dollar (USD) and lower US Treasury bond yields weigh on the USD/CAD pair. The pair currently trades near 1.3378, down 0.08% on the day. Later on Friday, traders will closely monitor the US Nonfarm Payrolls (NFP) report for fresh catalysts, which is estimated to see 180,000 jobs added in January. (FXStreet) NZD/USD continues to gain ground for the second trading session on Friday, improving to near 0.6150 during the Asian hours. The depreciation of the US Dollar (USD) could be attributed to the subdued US Treasury yields. US Treasury yields experienced downward pressure amid concerns regarding regional US banks. Additionally, the improved medium-impact data from New Zealand could have provided some support for the New Zealand (NZD) and, consequently, acted as a tailwind for the NZD/USD pair. (FXStreet) The EUR/GBP cross gains ground below the mid-0.8500s during the early European session on Friday. Nonetheless, the upside of the cross seems limited. The Bank of England (BoE) held rates steady at its January meeting on Thursday, and BoE Governor Andrew Bailey said more evidence of inflation is needed before lowering rates. At press time, the cross is trading at 0.8531, gaining 0.03% on the day. (FXStreet) Indian Rupee (INR) trades in positive territory for the third consecutive day on Friday. The announcement of the India Budget 2024 by Finance Minister Nirmala Sitharaman provides some support to the INR. Minister Sitharaman said in her budget statement on Thursday that the government will focus on more comprehensive governance, development, and performance. Four groups that will be the priority for the government are the poor, women, youth, and farmers. (FXStreet) EUR/JPY experiences difficulty in establishing a clear direction after a choppy previous day, hovering around 159.20 during the Asian session on Friday. The Euro (EUR) gained upward support following the release of mixed Eurozone inflation data on Thursday, consequently providing a foundation for the EUR/JPY cross. (FXStreet) On Friday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1006 as compared to the previous day's fix of 7.1049 and 7.1655 Reuters estimates. (FXStreet) West Texas Intermediate (WTI) futures on NYMEX discover interim support near $73.70 as the OPEC+ has maintained its oil output policy and is expected to make a fresh decision on an extension or decline in voluntary cuts in March. (FXStreet) Gold price (XAU/USD) oscillates in a narrow range through the early part of the European session on Friday and trades just below a one-month high, around the $2,065 region touched the previous day. Diplomatic efforts to achieve a ceasefire in the Palestinian enclave have accelerated, which, along with a modest bounce in the US Treasury bond yields, act as a headwind for the safe-haven precious metal. (FXStreet) Silver (XAG/USD) struggles to capitalize on the previous day's solid recovery from the $22.50 region, or a one-week trough and oscillates in a narrow trading band through the first half of the European session on Friday. The white metal currently trades around the $23.15 region, nearly unchanged for the day, as traders keenly await the release of the US monthly jobs report (NFP) before placing fresh directional bets. (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.

2024-01-31 09:21

Market Update - 31 January 2024 The EUR/USD pair tumbles to near the round-level support of 1.0800 amid weaker German Retail Sales data and the dismal market sentiment. Monthly Retail Sales for December were surprisingly contracted by 1.6% while investors anticipated them expanding by 0.7%. In November, consumer spending was sharply lower by 2.5%. (FXStreet) USD/JPY sold off earlier in the week but managed to rebound off the 100-day simple moving average – key technical floor. If gains pick up impetus over the coming days, primary resistance is positioned at 148.20, followed by 149.00. Looking higher, the crosshairs will be on the 150.00 handle. (DailyFX) GBP/USD extends its losses for the second consecutive session on Wednesday, inching lower to near 1.2680 during the Asian session. The risk aversion sentiment is driving Investors towards the US Dollar (USD), which in turn, undermines the GBP/USD pair. US President Joe Biden has communicated that the United States will respond in a tiered approach to a specific situation following the deadly drone attack on US troops near the Jordan-Syria border. (FXStreet) USD/CHF experiences upward movement for the second consecutive session on Wednesday, edging higher to near 0.8630 during the Asian session. This positive momentum is attributed to anticipation and support ahead of the Federal Reserve's (Fed) interest rate decision later in the day. Market participants seem to have priced in the expectation that the Fed will likely make no adjustments in January's meeting. (FXStreet) The USD/CAD pair snaps the four-day losing streak during the early Asian session on Wednesday. The recovery of the pair is supported by upbeat US job openings and consumer confidence data, which lift the US dollar (USD). The Federal Reserve (Fed) monetary policy meeting on Wednesday will be in the spotlight, with no change in rate expected. At press time, USD/CAD is trading at 1.3405, gaining 0.04% on the day. (FXStreet) NZD/USD consolidates after intraday losses, halting its two-day winning streak. The NZD/USD pair trades lower around 0.6120 during the early European session on Wednesday. The US Dollar (USD) is experiencing appreciation against the New Zealand Dollar (NZD), riding on positive momentum ahead of the Federal Reserve's (Fed) interest rate decision later in the day. (FXStreet) USD/MXN loses ground for the second consecutive day ahead of the US Federal Reserve’s (Fed) interest rate decision. Federal Open Market Committee (FOMC) is widely anticipated to maintain its interest rates at 5.5%. However, the CME’s FedWatch Tool suggests a 43% chance of the Fed implementing the first rate cut in March. The USD/MXN pair inches lower to near 17.13 during the European session on Wednesday. (FXStreet) Indian Rupee (INR) trades on a stronger note on Wednesday. However, the upside of the pair might be capped as traders prefer to wait on the sidelines ahead of the Federal Reserve's Open Market Committee's (FOMC) interest rate decision. (FXStreet) The EUR/GBP cross remains on the defensive below the mid-0.8500s during the early European session on Wednesday. Investors await the German Retail Sales and Consumer Price Index (CPI) data on Wednesday for fresh impetus. The cross currently trades around 0.8535, losing 0.05% on the day. (FXStreet) AUD/JPY moves in a downward direction for the second successive day, trading lower around 97.00 during the Asian session on Wednesday. The Australian Dollar (AUD) faces a challenge after the softer consumer inflation data released earlier in the day. (FXStreet) On Wednesday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1039 as compared to the previous day's fix of 7.1055 and 7.1727 Reuters estimates. (FXStreet) West Texas Intermediate (WTI) oil price retraces its recent gains despite an escalated situation in the Middle East. The WTI oil price inches lower to near $77.40 per barrel during the Asian session on Wednesday. US President Joe Biden has stated that the United States (US) will respond appropriately to a given situation after an attack on a US post in Jordan, and there is a possibility of a tiered approach which implies a strategy involving different levels or stages of actions. (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.