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08.02.2024 Market Report


EUR/USD sustains this week’s recovery move below 1.0800 early Thursday. The upside in the pair is sponsored by a modest US Dollar weakness but traders turn cautious ahead of the ECB Bulletin and a host of central banks’ speeches. 


GBP/USD is paring back gains toward 1.2600 in European trading on Thursday. The pair stalls its winning streak, as the US Dollar finds its feet amid a mixed market sentiment. Traders await speeches from the BoE and Fed officials for fresh cues on their rate cut paths. 


USD/JPY is caught in consolidation near the 148.00 handle in the midweek market session as a thin economic calendar leaves markets to churn on rate cut expectations and the odd appearance from central bank policymakers. Wednesday saw several heads from the US Federal Reserve (Fed) hit markets with soundbites that failed to generate much momentum in either direction. 


The Australian Dollar (AUD) recovers its recent losses on Thursday, buoyed by a risk-on sentiment in the market. Despite the US Federal Reserve (Fed) emphasizing its commitment to keeping interest rates elevated until inflation sustainably returns to the 2% target, the US Dollar (USD) faces challenges. Moreover, improved conditions in the Australian money market are lending support to the Aussie Dollar (AUD), thereby bolstering the AUD/USD pair.


The NZD/USD pair holds positive ground above 0.6100 during the early Asian session on Thursday. The solid New Zealand Q4 labor market data amid re-pricing odds of further Reserve Bank of New Zealand (RBNZ) policy tightening, has boosted the New Zealand Dollar (NZD). NZD/USD currently trades around 0.6118, gaining 0.16% on the day.


USD/CAD continues to move in a downward direction for the third straight day, edging lower to near 1.3450 during the Asian session on Thursday. The upbeat Crude oil prices are contributing support to strengthening the Canadian Dollar (CAD), which, in turn, acts as a headwind for the USD/CAD pair.


USD/CHF recovers its losses amid a subdued US Dollar, edging higher to near 0.8700 during the early European hours on Thursday. US Dollar (USD) faces a challenge due to lower yields on US Treasury bonds, consequently, undermining the USD/CHF pair.


Oil extended gains on Thursday after Israel rejected a ceasefire offer from Hamas, while a weaker dollar also supported prices.


Gold is finding buyers early Thursday to take on the $2,040 barrier once again, having failed to resist above the same since last Friday. XAU/USD price is capitalizing on the risk-on sentiment-driven US Dollar weakness while sluggish US Treasury bond yields also remain supportive.

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