Pre Loader

24.01.2024 Market Report


The EUR/USD trades on a stronger note during the early European session on Wednesday. The major pair has flirted with the weekly lows of 1.0821 and rebounded to 1.0862. However, the potential upside seems limited as investors turn cautious ahead of the ECB interest rate decision on Thursday. 


GBP/USD recovers its recent gains, trading higher near 1.2690 during the early European hours on Wednesday. The psychological level at 1.2700 appears as the immediate resistance followed by the weekly high of 1.2747 aligned with the major barrier at 1.2750.


The USD/JPY hit a familiar hit bid at 148.70 as markets picked up the US Dollar (USD), keeping the Japanese Yen (JPY) broadly lower on the day. The Bank of Japan (BoJ) kept its policy rate locked in negative territory at -0.1% until the Japanese central bank sees more signs that inflation will avoid cooling off more than anticipated in the future. The BoJ is grappling with an opposite problem that is plaguing most global central banks; Japan’s long-standing struggle to stoke meaningful inflation within the domestic Japanese economy has the BoJ petrified that any upside moves in interest rates without already-rising wages and inflation pressures will cause structural deflation to set in.


The AUD/USD opened the Asian session virtually unchanged, but on Tuesday registered decent gains of 0.14%, bracing at around 0.6578.


The NZD/USD pair struggles to capitalize on its modest gains registered during the Asian session on Wednesday and remains well within the striking distance of a near two-month low, around the 0.6065-0.6060 area touched the previous day. Spot prices currently trade just below the 0.6100 mark, nearly unchanged for the day, though a combination of factors could help limit deeper losses.


The USD/CAD pair loses ground above the mid-1.3400s during the early Asian trading hours on Wednesday. Market participants will closely monitor the Bank of Canada (BoC) interest rate decision on Wednesday, which no change in policy expected. At press time, USD/CAD currently trading around 1.3463, down 0.04% on the day.


USD/CHF makes an effort to halt its winning streak that began on January 11. The USD/CHF pair trades lower near 0.8690 during the Asian session on Wednesday. This could be attributed to a minor decline in the US Dollar due to the downbeat US Treasury yields.


Oil prices edged lower on Wednesday, weighed down by concerns over tepid demand and a stronger dollar even though escalating geopolitical tensions limited the losses.


Gold price meets with a fresh supply on early Wednesday and erodes a part of the overnight modest gains back closer to the $2,040-2,042 supply zone. However, the precious metal remains confined in a multi-day-old trading range.

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.