Market Update - 24 January 2024

EUR/USD trades in positive territory near 1.0862, adding 0.12% on the day.  The bearish outlook of the pair remains intact below the key EMA; RSI holds below the 50 midline.  1.0895 acts as an immediate resistance level for EUR/USD; the initial support level is seen at 1.0840. (FXStreet)

The Japanese Yen draws support from the BoJ’s hawkish tilt on Tuesday and geopolitical tensions.  Reduced bets for an early Fed rate cut favour the USD bulls and should lend support to USD/JPY. Traders might also prefer to wait on the sidelined ahead of this week's important US macro data. (FXStreet)

USD/CAD gains ground ahead of the BoC monetary policy decision on Wednesday. Technical analysis suggests a bullish trend towards a weekly high at 1.3491 and a psychological level at 1.3500. The 23.6% Fibonacci retracement at 1.3454 and the 1.3450 major level could act as the immediate support zone. (FXStreet)

USD/CHF strives to snap its winning streak as US Treasury yields decline. Markets bets on Fed rate cuts in March have slowed down. Fed’s Bullard has anticipated the central bank to initiate policy rate cuts as early as March. SNB President Thomas Jordan noted that the robust CHF has played a role in capping inflation. (FXStreet)

EUR/JPY loses traction around 160.61 ahead of the German and Eurozone PMI data.  The cross keeps the bullish vibe above the key EMA; RSI indicator stands below the 50 midline.  The first upside barrier is seen at 161.56; the key support level will emerge at 160.40. (FXStreet)

GBP/USD maintains its position below the psychological barrier of 1.2700. A break above the 1.2750 major level could lead the pair to revisit the monthly high at 1.2785. The pair could find a support zone around the 1.2650 major level and the 23.6% Fibonacci retracement at 1.2648. Technical analysis suggests a lack of a strong directional bias in the pair. (FXStreet)

USD/MXN snaps a two-day winning streak ahead of US PMI data The decline in the US bond yields undermines the US Dollar. Banxico’s former Governor Agustin Carstens suggested being cautious before making policy decisions. (FXStreet)

NZD/USD gains ground as US Dollar loses ground on lower US bond yields. Kiwi CPI YoY came above the RBNZ’s target 1-3% target range at 4.7% in Q4. Market expects no adjustment in the Fed’s monetary policy in February’s meeting. (FXStreet)

AUD/USD registers a 0.14% gain in the Asian session, stabilizing at the 200-DMA. Business activity slightly recovered in Australia but remains shy of expanding. High US Treasury yields capped the AUD/USD rise on Tuesday’s session.Traders eye key US GDP data and the core PCE index on the horizon. (FXStreet)

WTI edges lower to $74.30 amid the rising oil supply. US crude oil inventories fell by 6.674M barrels for the week ending January 19 vs. 0.483M barrels gains previously. The rising geopolitical tensions in the Red Sea are a primary driver behind lower demand for oil. (FXStreet)

Gold price reverses an intraday dip amid geopolitical tensions, reiterating US bond yields and a softer USD.  Reduced bets for an early interest rate cut by the Fed to limit the USD losses and cap the upside for the metal.  Traders might also refrain from placing aggressive directional bets ahead of this week's key US macro data. (FXStreet)

Silver attracts some buyers for the second straight day and climbs back closer to the weekly top. The technical setup warrants caution before positioning for any meaningful appreciating move. A descending trend-line hurdle extending from the December swing high might cap further gains. (FXStreet)

Source: FXStreet

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