2024-01-19 10:13

EUR/USD could face a challenge on the sentiment toward early rate cuts by the ECB. ECB President Christine Lagarde expects interest rate cuts might be considered by the summer. Upbeat US Treasury yields could reinforce the strength of the US Dollar. (FXStreet) GBP/USD attracts some buyers for the third successive day amid subdued USD demand. The hotter UK CPI dashed hopes for an early rate cut by the BoE and underpins the GBP. The intraday technical setup favours bulls and supports prospects for a further move up. (FXStreet) USD/CAD moves sideways with a positive bias toward an upward direction. US Dollar rose as investors’ sentiment toward Fed rate cuts diminished. The upcoming US and Mexican elections could put further pressure on MXN. (FXStreet) USD/CHF continues to gain ground after nervous comments from the SNB Chairman. SNB Chairman Thomas Jordan is concerned that excessive appreciation of CHF could drive inflation below zero. US Dollar gained ground on the diminished possibility of Fed rate cuts in March. (FXStreet) EUR/GBP attempts to recover the recent losses ahead of UK Retail Sales data. Hot UK inflation numbers influence traders to trim their expectations for BoE rate cuts. ECB President Lagarde’s indication on rate cuts weighs on the Euro. (FXStreet) GBP/JPY loses its recent gains around 188.25 following the downbeat UK Retail Sales data. UK Retail Sales fell 3.2% MoM in December from a 1.4% rise in November, below the market consensus The cross holds above the key EMA with the overbought RSI condition. The immediate resistance level will emerge at 189.00; 187.32 acts as an initial support level for EUR/JPY. (FXStreet) EUR/JPY surges to 161.55, the highest level since November 30, 2023. ECB President Christine Lagarde said interest rate cuts might be on the table by the summer. The decline in the Japanese CPI in December reaffirms expectations that the BoJ will maintain its ultra-dovish stance. Investors await the December German Producer Price Index (PPI) and the ECB's Lagarde speech on Friday. (FXStreet) NZD/USD moves on a downward trajectory after softer Business NZ PMI data. A breach below 0.6100 could lead the pair to retest January’s low at 0.6088. The seven-day EMA at 0.6150 could act as an obstacle followed by the 23.6% Fibonacci retracement level at 0.6165. (FXStreet) USD/CNH extends its losses followed by the support at 23.6% Fibonacci retracement level at 7.1985. A break below the 14-day EMA could lead the pair to test the weekly low at 7.1748. Technical indicators suggest a bullish momentum to revisit the week’s high at 7.2322. (FXStreet) WTI Oil prices struggle to attract follow-through buying and consolidate during the Asian session on Friday. Optimistic demand forecasts and concerns over disruptions in Middle East supplies lend support to Oil prices. Hopes that the markets will remain well supplied, China's economic woes and a bullish USD seem to cap gains. (FXStreet) Gold price gains positive traction for the second successive day, though the upside seems limited. Escalating geopolitical tensions seems to benefit the safe-haven XAU/USD and remain supportive. Reduced bets for a March Fed rate cut push the US bond yields high and should cap further gains. (FXStreet) Silver price finds an interim support near $22.40 amid geopolitical tensions. The Fed is expected to maintain status-quo in January policy meeting for the fourth time in a row. Fed Bostic warns about upside risks of inflation on premature rate cuts. (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.

2024-01-18 10:08

EUR/USD attracts buyers for the second straight day and moves away from over a one-month low. The setup favours bear and supports prospects for the emergence of fresh selling at higher levels. Reduced bets for a March Fed rate cut favour the USD bulls and should contribute to capping gains. (FXStreet) GBP/USD trades in positive territory for two straight days on Thursday. The pair keeps the bearish vibe unchanged below the key EMA; RSI indicator stands below the 50 midline. The immediate resistance level is seen at 1.2700; the initial support level is located at 1.2628. (FXStreet) USD/CHF continues to gain ground market caution toward Fed rate cuts. SNB Chairman Thomas Jordan will speak at the WEF in Davos on Thursday. Solid Retail Sales data contributed to diminishing the easing of the Fed’s monetary policy. (FXStreet) USD/CAD tries to snap its five-day winning streak on a subdued US Dollar. A break below the seven-day EMA at 1.3456 could lead the pair to test the 1.3400 psychological level. The pair could find resistance around 50% retracement level at 1.3536 followed by the support at 1.3550. (FXStreet) EUR/JPY edges lower to 161.20 amid the safe-haven flow. ECB’s Vasle pushed back against expectations of an early rate cut. Investors anticipate the Bank of Japan will maintain its ultra-dovish stance at its January policy meeting next week. (FXStreet) AUD/JPY moves above a key level of 97.00 after the Australian economic data. Aussie Consumer Inflation Expectations and Unemployment Rate remained consistent at 4.5% and 3.9%, respectively. Japanese Yen faces challenges as BoJ is expected to maintain an ultra-dovish stance. (FXStreet) USD/MXN retraces its recent losses on risk aversion sentiment. The upcoming Mexico and the US elections could exert pressure on the MXN. US Dollar recovers its intraday losses despite downbeat US bond yields. (FXStreet) NZD/USD struggles to snap its losing streak amid a weaker US Dollar. US Dollar Index pulls back from its five-week high at 103.69. IMF's first Deputy Managing Director, Gita Gopinath expects rate cuts to be in the second half of 2024. New Zealand's Food Price Index (MoM) declined by 0.1% against the previous fall of 0.2%. (FXStreet) WTI price received upward support from a positive OPEC report. OPEC forecasted oil demand to grow by 2.25 and 1.85 million bpd in 2024 and 2025, respectively. US announced to re-designate the Houthis on its list of "specially designated global terrorists”. (FXStreet) Gold price attracts buyers on Thursday and snaps a two-day losing streak from over a one-month low. A generally weaker risk tone offers some support to the safe-haven metal amid a modest USD downtick. Diminishing odds for a March Fed rate cut to act as a tailwind for the buck and cap any further gains. (FXStreet) Silver price gauges an interim cushion near $22.50, more downside looks likely as Fed rate cut bets ease. Strong US consumer spending has dented hopes of rate cut by the Fed in March. Silver price hovers near the horizontal support of the descending triangle chart pattern. (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.

2024-01-17 10:23

EUR/USD extends its losses to near 38.2% Fibonacci retracement level at 1.0867. A break below the 1.0850 level could prompt the pair to reach the psychological region around the 1.0800 level. The selling interest could outweigh the buying interest at the psychological level of 1.0900. (FXStreet) GBP/USD trades in negative territory for two straight days on Wednesday. The major pair holds below the key EMA with an oversold RSI condition. The critical support level will emerge at the 1.2600 mark; 1.2686 acts as an immediate resistance level for GBP/USD. (FXStreet) USD/CHF moves on an upward trajectory as traders adopt a cautious stance. US has conducted a third military strike on a Houthi missile facility in Yemen. The recent Swiss inflation data could deter the SNB from reducing policy rates in the next policy meeting. (FXStreet) USD/CAD continues its winning streak on the upbeat US Dollar. The decline in the WTI price weakens the Canadian Dollar. US Dollar cheers the market sentiment change due to the Middle East conflict. (FXStreet) GBP/JPY extends its gains on the upbeat UK economic data. UK inflation and retail sales data reinforce the strength of the Pound Sterling. Traders await Friday’s National Consumer Price Index data from Japan. (FXStreet) EUR/GBP loses momentum to 0.8595 following stronger UK CPI data. The United Kingdom CPI rose 4.0% YoY in December vs. 3.9% prior, stronger than expected. German Economic Confidence Unexpectedly improved in January. The December Eurozone Harmonized Index of Consumer Prices (HICP) will be due on Wednesday. (FXStreet) USD/MXN could find resistance around the 38.2% Fibonacci retracement at 17.43. MACD indicates a shift towards bullish momentum for the pair. The 21-day EMA at 17.04 aligned with the psychological level at 17.00 could act as a key support region. (FXStreet) NZD/USD loses ground as investors turn back toward US Dollar. The mixed Chinese data failed to improve the Kiwi Dollar. Traders await December’s US Retail Sales data to gain fresh impetus on the US economic landscape. (FXStreet) WTI price moves sideways with a negative bias as US oil facilities increase output. EIA revealed that the Permian Basin production rose by 5.5 thousand bpd to 5.9 million bpd. US Central Command has reported about targeting a Houthi missile facility in Yemen. Improved US Dollar impacts the demand for dollar-denominated Crude oil among other countries. (FXStreet) Gold price falls sharply as Fed Waller maintains a higher for longer interest-rates narrative. The last leg of high US inflation has turned out to be significantly stubborn. Guidance from three Fed policymakers and US Retail Sales data are due on Wednesday. (FXStreet) Silver price falls sharply to near $22.70 as Fed Waller denied early rate cut discussions. The USD Index has climbed to near 103.50 amid a risk-off mood. Investors await the US Retail Sales and the Industrial Production data for further guidance. (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.

2024-01-16 09:37

EUR/USD retraces its recent gains as the US Dollar gains ground on risk aversion. MACD indicates a momentum shift towards a bearish sentiment in the pair. The psychological level at 1.0900 and the 50-day EMA at 1.0897 could act as a potential support region. (FXStreet) USD/JPY trades in positive territory for the second consecutive day on Tuesday. The Japanese Producer Price Index (PPI) came in at 0.3% MoM in December vs. 0.2% prior, beating the estimation of 0%. Investors anticipate the interest rate cuts as soon as a Fed meeting in March. (FXStreet) GBP/USD loses ground on risk aversion as escalation of the Middle East conflict is possible. The Pound Sterling faces challenges before the release of UK labor data on Tuesday. Governor Bailey’s testimony has been canceled; traders will look for his remarks in Davos. Houthis are likely to broaden their targets in the Red Sea region including US vessels. (FXStreet) USD/CHF moves on an upward trajectory amid market caution. Traders observe the five-day World Economic Forum in Davos to gain cues on the global economic scenario. US Dollar rises on upbeat US Dollar, coupled with hawkish remarks from Fed’s Bostic. (FXStreet) USD/CAD gains ground as investors turned back to the US Dollar. WTI price could rise on the escalated situation in the Red Sea; supporting CAD. BoC’s Business Outlook Survey Results showed that inflation could persist above the 2.0% target. (FXStreet) EUR/JPY edges lower to 159.50 amid the risk-off sentiment. The German Harmonized Index of Consumer Prices (HICP) came in at 3.8% YoY in December vs. 3.8% prior, as expected. The markets anticipate the BoJ will end its negative interest rate, probably in April 2024. Traders await the January Zew Survey from Germany and the Eurozone, due later on Tuesday. (FXStreet) NZD/USD trades in negative territory for two straight days, losing 0.46% on the day. The concern about ongoing geopolitical tension lifts the US dollar and exerts some selling pressure on the Kiwi. New Zealand NZIER Business Confidence for Q4 arrived at -2.0% vs. -52% prior. Investors await the US NY Empire State Manufacturing Index for January, due on Tuesday. (FXStreet) USD/MXN improves as the US Dollar receives upward support from risk-off sentiment. Fed’s Bostic said that inflation deceleration toward the 2.0% target could slow down. Banxico’s officials face challenges in reducing interest rates due to high inflation. (FXStreet) WTI prices edge higher on supply disruptions as Houthi broadens targets in the Red Sea. The route diversion of maritime vessels is raising shipping costs and transit times for oil transportation. Islamic Revolutionary Guard Corps (IRGC) launched missiles to dismantle espionage centers near the US Consulate in Erbil, Iraq. (FXStreet) Gold price holds above $2,050 in Tuesday’s Asian trading hours. Modest gains in gold are underpinned by rising tensions in the Red Sea and the risk-off mood. Atlanta Fed’s Bostic said inflation could seesaw if policymakers cut rates too soon. (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.

2024-01-15 09:27

EUR/USD holds positive ground above the mid-1.0900s amid the USD weakness. European Central Bank (ECB) officials emphasized the need to wait for more data before making decisions on rate normalization. The US Producer Price Index (PPI) unexpectedly dropped in December. Investors will focus on Eurozone Industrial Production, due later on Monday. (FXStreet) USD/JPY gains ground on improved US Dollar. Risk-averse sentiment contributes support to strengthening the Greenback. BOJ is expected to maintain its inflation projection near 2.0% target in the coming years. (FXStreet) GBP/USD recovers its intraday losses on the weaker US Dollar. The risk-on mood fades on escalated tension in the Middle East. Barclays revised its forecast on the Fed rate cut to March from June. (FXStreet) USD/CAD trades on a softer note near 1.3391 on the softer USD. The swaps market anticipates nearly 175 basis points (bps) of Federal Reserve (Fed) easing this year. The Bank of Canada (BoC) is widely expected to start cutting interest rates this year after a series of rate hikes. The Canadian Consumer Price Index (CPI), and US Retail Sales for December will be in the spotlight this week. (FXStreet) EUR/JPY rebounds to 159.25 ahead of the Eurozone Industrial Production data. The cross keeps the bullish vibe unchanged above the key EMA; RSI indicator stands above the 50 midline. The critical upside barrier is seen at 160.00; the key support level is located at the 158.30–158.40 zone. (FXStreet) USD/CHF treads water to continue its winning streak as the US Dollar improves. The escalated concern in the Red Sea could have supported the safe-haven CHF. The 28,000 leaders are expected to participate in the 54th World Economic Forum Annual Meeting in Davos. (FXStreet) NZD/USD retraces its gains on risk-averse sentiment due to the Middle East situation. Softer US PPI data boosted the market sentiment toward the Fed rate cut. Chinese inflation remains in deflationary territory, keeping the antipodean currencies, including the New Zealand Dollar (NZD). (FXStreet) WTI price gains ground for the third session on fear of conflict escalation in the Red Sea. Iran-led Houthis launched a cruise missile at the US Navy vessel in the Red Sea. Protesters threatened to close down two additional oil and gas facilities in Libya. (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.

2024-01-12 09:57

Market Update - 12 January 2024 EUR/USD continues to gain ground for the third successive day, trading higher around 1.0980 during the Asian session on Friday. The EUR/USD pair receives upward support due to the subdued US Dollar (USD), a trend attributed to the market's expectations of five rate cuts by the Federal Reserve by the end of 2024, beginning with anticipated cuts in March and May. (FXStreet) The GBP/USD pair gains ground to nearly the weekly high during the early Asian trading hours on Friday. The November UK Gross Domestic Product (GDP) is estimated to grow by 0.2% MoM from the 0.3% contraction in the previous reading. GBP/USD currently trades near 1.2780, gaining 0.16% on the day. (FXStreet) The USD/CHF pair remains confined within a multi-week trading range of 0.8400-0.8575 during the early European trading hours on Friday. The firmer US Dollar (USD) following the upbeat US inflation data might lend some support to the pair. However, the upside of USD/CHF might be limited due to the escalating tension in the Middle East. At press time, the pair is trading at 0.8520, losing 0.02% on the day. (FXStreet) USD/CAD retraces its recent gains recorded on Thursday, trading lower near 1.3350 during the European session on Friday. The Canadian Dollar (CAD) is strengthening, influenced by the positive movement in Crude oil prices. This uptick in oil prices is attributed to escalating tensions in the Middle East following military attacks by the US and UK on Iran-backed Houthi locations in Yemen. (FXStreet) The NZD/USD pair builds on the overnight bounce from the sub-0.6200 levels, or the weekly low, and gains positive traction for the second successive day on Friday. Spot prices stick to modest intraday gains through the first half of the European session and currently trade around the mid-0.6200s, closer to the top end of the weekly range. (FXStreet) USD/MXN extends its losses for the second straight day, possibly due to the improved risk appetite as traders price in the possibility of resuming rate cuts in March and May. The USD/MXN pair trades lower near 16.87 during the European session on Friday. (FXStreet) EUR/GBP continues to move on a downward trajectory for the second successive session, trading near 0.8590 during the early European session on Friday. The EUR/GBP pair loses ground on improved production data from the United States (US). (FXStreet) Indian Rupee (INR) gathers strength despite the renewed US dollar (USD) demand on Friday. INR is expected to have a choppy session on Friday due to the upbeat US inflation data. Investors now see the Federal Reserve (Fed) potentially delaying its first interest rate cut in March meeting. (FXStreet) The EUR/JPY cross trades on a softer note for the second consecutive day during the early European session on Friday. The risk-off mood due to a further escalation of geopolitical tensions in the Middle East boosts the safe-haven currency like the Japanese Yen (JPY) and acts as a headwind for the EUR/JPY cross. The cross currently trades near 159.30, down 0.15% for the day. (FXStreet) The AUD/JPY cross attracts some dip-buying near the 100-hour Simple Moving Average (SMA), around the 97.00 mark, and climbs to a fresh daily peak following the release of Chinese inflation figures. Spot prices currently trade just below mid-97.00s, up nearly 0.20% for the day, reversing a part of the previous day's retracement slide from the highest level since December 4. (FXStreet) The People’s Bank of China (PBoC) sets the USD/CNY central rate for the trading session ahead o Friday at 7.1050 as compared to the previous day's fix of 7.1087 and 7.1592 Reuters estimates. (FXStreet) West Texas Intermediate (WTI) price rises on the second consecutive day, driven by heightened concerns over potential oil supply disruptions in the Red Sea. Air strikes carried out by the United States (US) and United Kingdom (UK) targeted Iran-backed Houthis in Yemen, raising fears that the situation could escalate the Israel-Gaza conflict into a regional conflict. The WTI price improves near $73.50 per barrel during the Asian session on Friday. (FXStreet) Gold price (XAU/USD) gains positive traction for the second straight day on Friday and recovers further from a one-month low, around the $2,013 area, representing the 50-day Simple Moving Average (SMA) touched the precious day. The intraday ascent extends through the first half of the European session and is sponsored by an escalation of geopolitical tensions in the Middle East, which is seen benefitting the safe-haven precious metal. Adding to this, the US Dollar (USD) extends its range-bound price action amid the uncertainty over the Federal Reserve's (Fed) rate trajectory and turns out to be another factor underpinning the commodity. (FXStreet) Silver price (XAG/USD) discovered a significant buying interest after printing a fresh seven-week low at $22.50. The white metal has recovered to near $23.00 as bets in favour of a rate-cut decision by the Federal Reserve (Fed) in March remains firmer despite stubbornly higher United States Consumer Price Index (CPI) report for December. (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.