Market Update - 09 February 2024

The EUR/USD pair continues with its struggle to move back above the 100-day Simple Moving Average (SMA) support-turned-resistance and remains below the 1.0800 mark through the early European session on Friday. The downside, however, remains cushioned in the wake of the recent hawkish remarks by several European Central Bank (ECB) officials and subdued US Dollar (USD) price action. Traders, however, seem reluctant to place aggressive directional bets and seek more clarity about the Federal Reserve's (Fed) rate hike path. (FXStreet)

The GBP/USD pair struggles to capitalize on the previous day's goodish bounce of around 50 pips from the 1.2570 region and oscillates in a narrow band during the Asian session on Friday. Spot prices currently trade near the top end of the weekly range, around the 1.2620 area, and draw support from a modest US Dollar (USD) downtick. (FXStreet)

USD/CHF retraces its recent losses as the US Dollar (USD) strengthens amid heightened geopolitical tensions in the Middle East, edging higher to around 0.8740 during Friday's Asian market session. Israeli airstrikes targeted the southern border city of Rafah on Thursday. (FXStreet)

USD/CAD halts its four-day losing streak as the US Dollar (USD) improves on market caution amid an escalated geopolitical tension in the Middle East. Additionally, the decline in Crude oil prices is contributing to downward pressure on the Canadian Dollar, consequently, underpinning the USD/CAD pair with trading around 1.3460 during the Asian session on Friday. Moreover, West Texas Intermediate (WTI) oil price tries to snap its four-day winning streak, edging lower to near $76.20 per barrel. (FXStreet)

The NZD/USD pair climbs to near 0.6130 in the London session on Friday. The Kiwi asset strengthens as investors see the Reserve Bank of New Zealand (RBNZ) tightening interest rates further due to persistent price pressures and steady labor demand. (FXStreet)

AUD/JPY moves on an upward trajectory for the fourth consecutive session, edging higher to near 97.20 during the European hours on Friday. The sentiment of the JPY’s traders shifted to bearish following the dovish remarks from Bank of Japan (BoJ) Deputy Governor Uchida Shinichi on Thursday. He stated that the central bank would not pursue aggressive rate hikes upon ending negative rates. (FXStreet)

USD/MXN extends its upward trend for the third consecutive day, trading around 17.15 during the European session on Friday. However, the USD/MXN pair gained ground on market caution due to the escalated tension in the Middle East. Israeli Prime Minister Benjamin Netanyahu's refusal of the ceasefire offer from Hamas added to the geopolitical uncertainty. (FXStreet)

The EUR/JPY cross snap a two-day winning streak below the 161.00 psychological mark during the early European session on Friday. The cross attracts some intraday sellers following the German inflation data. Investors await German Buba President Nagel's speech later on Friday for fresh catalysts. At press time, EUR/JPY is trading at 160.90, down 0.02% on the day. (FXStreet)

Indian Rupee (INR) trades weaker on Friday on the renewed US Dollar (USD) demand and higher US bond yields. The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) decided to keep the repo rate at 6.5% for the sixth consecutive time on Thursday. The decision was not unanimous this time, with the MPC deciding in favor of an unchanged rate by a 5:1 majority. (FXStreet)

On Friday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1036 as compared to the previous day's fix of 7.1063 and 7.1996 Reuters estimates. (FXStreet)

EUR/GBP: Retail trader data shows 79.61% of traders are net-long with the ratio of traders long to short at 3.90 to 1. Our data shows traders are now at their most net-long EUR/GBP since Jun 10 when EUR/GBP traded near 0.85. The number of traders net-long is 8.75% higher than yesterday and 8.56% higher from last week, while the number of traders net-short is 10.86% lower than yesterday and 3.11% lower from last week. (DailyFX)

West Texas Intermediate (WTI) oil price tries to snap its four-day winning streak, edging lower to near $76.30 per barrel during the Asian session on Friday. However, Crude oil prices gained ground in early trading hours on Friday due to the escalated tension in the Middle East after Israel rejected a ceasefire offer from Hamas. (FXStreet)

Gold price (XAU/USD) consolidates in a narrow trading band around $2035 region per troy ounce during the early Asian trading hours on Friday. Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, recovers above the 104.00 mark. The US Treasury yields edge higher, with the 10-year yield standing at 4.16%. (FXStreet)

Silver (XAG/USD) builds on the previous day's goodish recovery from the $22.15 area, or over a two-week low and trades with a positive bias for the second successive day on Friday. The momentum lifts the white metal to the top end of its weekly range, around the $22.70 region during the first half of the European session, albeit lacks bullish conviction. (FXStreet)

Source: FXStreet, DailyFX

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