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17.01.2024 Market Report


EUR/USD is nursing losses below 1.0900 early Wednesday, following a sharp sell-off to five-week lows of 1.0862 on Tuesday. The US Dollar is taking a breather, as investors weigh the Fed’s rates outlook amid persistent geopolitical risks. US Retail Sales data eyed. 


GBP/USD is trading under pressure near 1.2600 ahead of the key UK CPI inflation data on Wednesday. The data is critical to repricing the timings of the BoE interest rate cuts this year, which will significantly impact the Pound Sterling. 


The US Dollar (USD) gains traction against the Japanese Yen (JPY) bolstered by a rise in US Treasury bond yields amid a risk aversion environment. That, along with Japanese economic data revealed during the month, brushing aside the chances for the Bank of Japan (BoJ) to raise rates has faded. Therefore, the USD/JPY trades at 147.18, gains 1.04%.


The AUD/USD pair trades in negative territory for the fifth consecutive day during the early Asian session on Wednesday. The downtick of the pair is backed by the stronger US Dollar (USD) as investors decline their bet on rate cut speculation from the Federal Reserve (Fed). AUD/USD currently trades near 0.6583, up 0.02% on the day.


The NZD/USD pair edges higher during the Asian trading hours on Wednesday. The mixed economic data from China failed to boost the China-proxy Kiwi. Investors will take more cues from US Retail Sales later in the day. At press time, NZD/USD is trading at 0.6150, gaining 0.22% for the day.


USD/CAD extends its gains for the fifth successive session, trading higher near to the 1.3500 level during the Asian session on Wednesday. The geopolitical situation in the Middle East is prompting investors to adopt a cautious stance, which is in turn supporting the US Dollar (USD) against other major currencies, including the Canadian Dollar (CAD).


The USD/CHF pair continues its winning streak that started on Thursday, influenced by a cautious market stance due to concerns over the Israel-Gaza conflict potentially spreading in the region. Amid this geopolitical tension, the USD/CHF pair trades higher around 0.8620 during the Asian session on Wednesday.


Oil fell on Wednesday as economic growth in China, the world’s second-largest crude user, slightly missed expectations, raising concerns about future demand increases while U.S. dollar strength dented investor’s risk appetite.


Gold price is licking its wounds at around $2,025 in Wednesday’s Asian trading, having incurred heavy losses on Tuesday, courtesy of the unabated demand for the US Dollar amid a further escalation in the Middle East geopolitical tensions and easing bets for aggressive US Fed rate cuts this year.

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