Market Update - 26 December 2023

The EUR/USD pair oscillates in a narrow range during the early European session on Wednesday. The market is likely to trade in a quiet session amid the holiday season in the last week of 2023. The major pair currently trades near 1.1041, down 0.01% on the day. (FXStreet)

The USD/JPY pair gains ground during the early Asian session on Wednesday. The pair has reached 142.84 following the release of the Bank of Japan's (BoJ) Summary of Opinions and currently trades around 142.60. The market is likely to be quiet amid the light trading volume in the last week of 2023. (FXStreet)

GBP/USD hovers around 1.2720 during the Asian session on Wednesday. The US Dollar (USD) encounters downward pressure against Pound Sterling (GBP) as growing speculations of potential easing by the US Federal Reserve (Fed). (FXStreet)

USD/CHF pair is relatively quiet, hovering around 0.8540 during the early European hours on Wednesday. Heightened risk aversion seems to lead to the increased demand for safe-haven currencies like the Swiss Franc (CHF). (FXStreet)

USD/CAD hovers below 1.3200 during the Asian trading hours on Wednesday. However, Canadian economic data showed an economic slowdown. Canadian Gross Domestic Product (GDP) (MoM) failed to print growth for a fourth straight in October, coming in flat at 0.0% after September’s GDP print saw a downside revision from a meager 0.1% to flat. (FXStreet)

NZD/USD trades slightly lower around 0.6320 during the European session on Wednesday. However, market participants bet on the US Federal Reserve’s (Fed) dovish stance on interest rate trajectory in early 2024, which weakens the demand for US Dollar (USD). This reinforces the strength of the NZD/USD pair. (FXStreet)

Indian Rupee (INR) drifts lower on Wednesday amid the holiday season's thin trading. In its latest research report on ’India Corporates: Sector Trends 2024’, Fitch Ratings forecasted that India’s resilient economic growth will boost the performance of the corporate sector and offset weaknesses from global market challenges. Furthermore, the leading credit rating agency stated that India is expected to be the world’s fastest-growing country, with resilient GDP growth of 6.5% during the fiscal 2024-25. (FXStreet)

The GBP/JPY cross holds positive ground during the early European session on Wednesday. The cross edges higher following the Bank of Japan's (BoJ) publication of its Summary of the December Meeting. The cross currently trades near 181.63, up 0.21% on the day. (FXStreet)


West Texas Intermediate (WTI) price trades higher around $75.50 per barrel during the Asian session on Wednesday. The increase in Crude oil prices is partially attributed to optimism surrounding potential US interest rate cuts, which could stimulate economic growth and increase fuel demand. (FXStreet)

Gold price hovers above $2,060 per troy ounce during the early European session on Wednesday. The upward movement in Gold prices is attributed to traders factoring in the potential for rate cuts by the Federal Reserve (Fed). Moreover, WIRP indicated that the market has priced in a 15% probability of a cut on January 31 and has fully priced in cuts by March 20, with six cuts fully priced in by the end of 2024. (FXStreet)

Source: FXStreet

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