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09.02.2024 Market Report


EUR/USD is extending its struggle below 1.0800 in the European session on Friday. The pair lacks any clear directional impetus amid a cautious mood and a steady US Dollar. Focus shifts to the US CPI revisions, ECB- and Fedspeak for fresh trading incentives. 


The GBP/USD struggles to capitalize on the previous day’s goodish bounce of around 50 pips from the 1.2570 region and oscillates in a narrow band during the early European trading hours on Friday. Spot prices trade near the top end of the weekly range, around the 1.2620 area.


The US Dollar struggles for direction on Friday, but not against its Japanese rival. The USD/JPY pair trades in the 149.30 region, its highest since last November. Dovish comments from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida, stating policy tightening would be gradual and that a rate adjustment would not necessarily trigger a tightening cycle, weighed on the Japanese Yen.


The AUD/USD pair extends its downside and holds below the 0.6500 mark during the early Asian session on Friday. The hawkish comments from Federal Reserve (Fed) officials and a stronger US Dollar (USD) weigh on the pair. AUD/USD currently trades around 0.6491, losing 0.01% on the day. 


NZD/USD recovers its recent losses seen in the prior session, trading higher around 0.6120 during the Asian trading hours on Friday. The New Zealand Dollar (NZD) is strengthening as ANZ anticipates the Reserve Bank of New Zealand (RBNZ) to increase its cash rate in both February and April. Currently standing at 5.5%, the Official Cash Rate (OCR) is expected to see a 25-basis point hike at each of these meetings. This prediction diverges from the consensus forecast, as market expectations suggest just under a 90% probability of a decision to maintain rates unchanged this month.


USD/CAD halts its four-day losing streak as the US Dollar (USD) improves on market caution amid an escalated geopolitical tension in the Middle East. Additionally, the decline in Crude oil prices is contributing to downward pressure on the Canadian Dollar, consequently, underpinning the USD/CAD pair with trading around 1.3460 during the Asian session on Friday. Moreover, West Texas Intermediate (WTI) oil price tries to snap its four-day winning streak, edging lower to near $76.20 per barrel.


USD/CHF retraces its recent losses as the US Dollar (USD) strengthens amid heightened geopolitical tensions in the Middle East, edging higher to around 0.8740 during Friday’s Asian market session. Israeli airstrikes targeted the southern border city of Rafah on Thursday.


Oil prices were little changed on Friday, staying on track for weekly gains, with tensions persisting in the Middle East after Israel rejected a ceasefire offer from Hamas.


Gold price continues with its struggle to gain any meaningful traction on Friday. Reduced bets for an aggressive Fed policy easing cap the upside for the metal. Traders prefer to wait for next week’s US inflation data before placing fresh bets.

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