EUR/USD is trading sideways in a narrow range above 1.0600 in typical pre-New Year thin markets. The pair is finding support from the risk-off flows-led retreat in the US Treasury yields, which is dragging the US Dollar lower. China’s covid concerns dent risk appetite.
GBP/USD slides to 1.2025 as it consolidates the intraday gains, the first in three days, during the early Thursday morning in London. The Cable pair’s latest weakness could be linked to the escalated fears surrounding COVID-19 and the Russia-Ukraine tussles. However, a retreat in the US Treasury yields put a floor under the prices.
USD/JPY is consolidating the drop below 134.00 in the early European morning. The Yen cheers risk aversion, as it remains the main theme so far. Investors remain unnerved amid fresh Covid concerns from China. The US Treasury yields retreat, adding to the weight on the pair.
AUD/USD treads water around 0.6750 as it reassesses the optimism surrounding China’s unlock amid Thursday’s sluggish session. Also challenging the Aussie pair buyers during the second positive day are the fears emanating from Russia and upbeat US Treasury yields.
The NZD/USD pair has extended its recovery above 0.6320 in the Asian session. Earlier, the Kiwi asset picked up demand after dropping at 0.6300. The major is expected to extend its recovery to near 0.6350 despite the risk-aversion theme in the global market.
USD/CAD remains depressed around the intraday low of 1.3588 amid the quiet markets during early Thursday. In doing so, the Loonie pair consolidates the biggest daily gains in a fortnight as the US Treasury yields weigh on the US Dollar. That said, the softer prices of WTI crude oil, Canada’s key export item, join the market’s mixed mood to restrict the quote’s immediate downside.
USD/CHF takes offers to refresh intraday low around 0.9267 as it cheers the US Dollar pullback amid inactive markets during the holiday season. In doing so, the Swiss currency (CHF) pair fails to justify the previous day’s Doji candlestick amid firmer Swiss ZEW Survey numbers for December.
Oil prices dipped on Thursday as surging COVID-19 cases in China dimmed hopes of a recovery in fuel demand for the world’s largest crude oil importer.
Gold price takes a U-turn from the intraday high as traders in the west ascertain fears emanating from China’s Covid conditions and Ukraine during early Thursday. The precious metal drops to $1,806 while consolidating the intraday gains.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.