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19.01.2024 Market Report


EUR/USD is holding steady below 1.0900 in European trading on Friday. A modest uptick in the US Dollar alongside the US Treasury bond yields, amid a cautious mood, is weighing on the pair. ECB Lagarde’s speech and US data awaited. 


GBP/USD is dropping toward 1.2650, under intense selling pressure after the UK Retail Sales dropped more than expected in December. The pair is also feeling the heat from a pause in the US Dollar decline, as sentiment remains tepid ahead of top-tier US data, Fedspeak. 


The USD/JPY registered modest gains as economic data released by the US Department of Labor (DoL) shows the labor market is running hot amid higher interest rates set by the Federal Reserve. That, along with global central bank speakers pushing back against rate-cut bets by traders, triggered a rise in US treasury yields since Tuesday. Nevertheless, as the North American session begins, US yields are dragged down, and the major aims higher 0.05%, trading at 148.12.


The Australian Dollar (AUD) begins Friday’s Asian session with minuscule gains of 0.02% against the US Dollar (USD), as the economy in the United States (US) remains resilient after the release of strong jobs reports and mixed housing data. At the time of writing, the AUD/USD exchanges hands at 0.6571.


The New Zealand Consumer Price Index (CPI) next week will be a closely watched event and could offer hints about further monetary policy updates from the Reserve Bank of New Zealand (RBNZ). 
The Labor Department revealed on Thursday that US Initial Jobless Claims reached their lowest level since September 2022. The Initial claims for state unemployment benefits dropped to 187,000 for the week ended January 13 from 203,000 in the previous reading. The total for continuing claims hit 1.806 million, better than the 1.845 million estimated. 


USD/CAD attempts to retrace its recent losses, trading around 1.3490 during the early European hours on Friday. The US Dollar (USD) continues to move in an upward direction on the back of solid economic data from the United States (US), coupled with the higher US Treasury yields.


USD/CHF seems to continue its winning streak that began on January 11. On Thursday, Swiss National Bank (SNB) Chairman Thomas Jordan issued a warning about the Swiss Franc’s (CHF) appreciating trend. Jordan expressed concerns at the World Economic Forum (WEF) in Davos about its potential impact on the SNB’s ability to maintain inflation above zero in the Swiss domestic economy. These remarks have contributed to the USD/CHF pair’s upward trajectory, with trading slightly higher around 0.8680 during the Asian session on Friday.


Oil prices rose on Friday as geopolitical tensions and oil output disruptions in the U.S., the world’s biggest producer, caused by cold weather overshadowed concerns about slow Chinese demand growth and forecasts for ample supply.


Gold price (XAU/USD) struggles to capitalize on the previous day’s modest recovery gains and oscillates in a narrow trading range heading into the European session on Friday. 

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