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05.01.2024 Market Report


The EUR/USD pair trades with a positive bias for the second successive day on Friday, albeit lacks follow-through and remains confined in the previous day’s broader trading range. Spot prices hover above mid-1.0900s as traders keenly await important macro data from the Eurozone and the United States.


GBP/USD continues its winning streak for the third successive day, trading higher around 1.2690 during the early European hours on Friday. The Pound Sterling gained ground possibly on the improved data released on Thursday from the United Kingdom (UK). 


In yesterday’s trading session, the USD/JPY pair has seen a rally, rising to multi-week highs of 147.70 with a robust 1% uptick. These gains were fueled primarily by the strength of the US Dollar and favorable figures from the labor market, boosting the Greenback over the Yen as the American economy continued to show resilience. Dovish bets on the Federal Reserve (Fed) eased but are still high. Today it trades at 145.05.


The AUD/USD continued to backslide on Thursday, slipping back into the 0.6700 handle after a short-lived rally sparked by improving risk sentiment on the back of a better-than-expected print in China’s Caixin Services Purchasing Managers’ Index (PMI) for December.


NZD/USD moves sideways with a negative bias, hovering around 0.6230 during the early European trading hours on Friday. The NZD/USD kicked into an intraday peak of 0.6286 yesterday, propped up by Chinese Services Purchasing Managers’ Index (PMI) figures beating expectations, but a surge in US labor and jobless claims sees investors pulling back to familiar midranges ahead of Friday’s US Nonfarm Payrolls.


USD/CAD retraces its recent losses registered in the previous session, trading higher near 1.3360 during the European session on Friday. The US Dollar (USD) seems to have recovered its recent losses, hovering near 102.50 on the back of improved US Treasury yields, coupled with the upbeat labor data released on Thursday from the United States (US) However, the improved Crude oil prices could provide support to the Canadian Dollar (CAD).


USD/CHF extends its gains on the second consecutive session on improved US Dollar (USD), which could be attributed to the risk-off mood due to the expected sluggish global growth at the end of 2024. The US Dollar Index (DXY) cheers on the improvement in US Treasury yields. Moreover, on Thursday, the upbeat labor data from the United States (US) supported the buck to limit its losses. The USD/CHF pair trades near 0.8500 during the Asian session on Friday.


Oil prices edged higher on Friday after minutes from a Federal Reserve meeting suggested inflation was under control and as U.S. Secretary of State Antony Blinken prepared to visit the Middle East to try and prevent the Israel-Gaza conflict from widening.


Gold price continues with its struggle to gain any meaningful traction on Friday and remains confined in a narrow trading band below the $2,050 level heading into the European session. Traders also seem reluctant to place aggressive bets ahead of the US monthly jobs report.

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