Market Update - 23 January 2024

The Japanese Yen attracts some dip-buying following the post-BoJ downtick earlier this Tuesday.  The Japanese central bank decided to leave its ultra-loose monetary policy settings unchanged. Bets for an eventual policy pivot in March or April underpin the JPY and weigh on USD/JPY. (FXStreet)

EUR/JPY trades on a stronger note near 161.50 after BoJ rate decision.  The BoJ held the interest rate and 10-year JGB yield target steady, allowing the 10-year JGB to move up to around 1.0%. The European Central Bank (ECB) will announce an interest rate decision on Thursday, with no changes in policy expected.  Investors await the German, Eurozone HCOB PMI reports ahead of the ECB rate decision. (FXStreet)

GBP/USD moves in an upward direction as BoE is expected to maintain its current restrictive policy stance. Economists in a Reuters poll anticipated the BoE to maintain the policy rate at 5.25% in February’s meeting. The escalated geopolitical situation improves the risk aversion sentiment and increases the demand for US Dollar. (FXStreet)

USD/CHF pulls back as the US Dollar faces the challenge of lower US Treasury yields. US Dollar might have cheered the hawkish remarks from the Fed’s officials. The risk aversion sentiment contributed support to underpinning the Greenback. Swiss Franc experienced selling pressure on SNB Jordan’s concern over inflation. (FXStreet)

EUR/USD hovers below the psychological resistance at 1.0900. A break above the 14-day EMA at 1.0916 could lead the pair to reach the major barrier at 1.0950. Technical indicators suggest a bearish sentiment towards the key support at 1.0850. (FXStreet)

USD/CAD faces a challenge due to the improved Crude oil prices. WTI price gains ground on concerns over global supply disruptions. BoC is expected to maintain its current policy rate of 5.0% in Wednesday's meeting. The escalated geopolitical situation has prompted investors to move towards the safe-haven US Dollar. (FXStreet)

EUR/USD trades with a mild negative bias on Tuesday, though the downside seems limited. Reduced bets for a March Fed rate cut underpin the USD and act as a headwind for the pair. The uncertainty over the timing of a rate cut by the ECB holds traders from placing fresh bets. (FXStreet)

AUD/JPY loses traction to 97.30 following the BoJ’s Ueda comments. The cross keeps the bullish vibe above the key EMA. The immediate resistance level will emerge at 97.76; the initial support level for AUD/JPY is seen at 97.24. (FXStreet)

USD/MXN gains ground on improved US Treasury yields. Mexican Peso could perform on factors associated with the United States. Fed members’ remarks indicated a more hawkish interest rate trajectory. (FXStreet)

NZD/USD retraces its recent losses on weaker US Dollar. The downbeat US bond yields weaken the Greenback. Kiwi Business NZ PSI came in at 48.8 in December 51.2 prior. (FXStreet)

WTI price moves higher on concerns over global supply disruptions. Ukraine conducted a drone attack on a Russian fuel terminal Novatek. US-led coalition continues air strikes against Iran-backed Houthi terrorist targets in Yemen. Libya’s Sharara oilfield resumed operations to bring back the supply of 270,000 bpd. (FXStreet)

Gold price sticks to the range-bound theme near $2,021 ahead of the Bank of Japan (BoJ) meeting. Federal Reserve (Fed) officials indicated that they are in no hurry to cut rates, even if the hikes are probably done. The January US Richmond Fed Manufacturing Index will be due on Tuesday. (FXStreet)

Silver stages a goodish recovery from over a two-month low touched on Monday. The setup favours bears and supports prospects for the emergence of fresh selling. A sustained strength beyond the $23.00 mark is needed to negate the negative bias. (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.