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16.02.2024 Market Report


 EUR/USD is trading on a softer note near 1.0750 in European trading on Friday. The renewed US Dollar demand and dovish comments from the ECB policymakers weigh on the pair. The focus now shifts to ECB-speak and US data. 


GBP/USD continues to fluctuate at around 1.2600 in the early European session on Friday. The data from the UK showed that Retail Sales rose 3.4% on a monthly basis but failed to provide a boost to Pound Sterling. Focus shifts to US January PPI figures.


The USD/JPY retreats after hitting a yearly high of 150.86 and tumbles below the 150.00 figure, courtesy of Japanese authorities’ verbal intervention in the FX markets. At the time of writing, the pair is forming an ‘evening star’ and trades at 149.95, down 0.42%.


On Thursday, the AUD/USD pair traded near 0.6520, marking a gain of 0.40% mainly driven by the report of weak economic data from the United States (US). However, as long as the markets bet on the Federal Reserve (Fed) delaying cuts, the pair may see further downside.


NZD/USD found some intraday gains on Thursday, bolstered by an unexpected decline in US Retail Sales in January, pushing down the US Dollar (USD) and giving the Kiwi (NZD) a lift, but the pair overall remains trapped in technical consolidation as long-term trends give way to congestion.


USD/CAD snaps a two-day losing streak, improving to near 1.3480 during the Asian hours on Friday. The US Dollar (USD) receives upward support against the Canadian Dollar (CAD), which could be attributed to the risk aversion sentiment while the market prices in the possibility of no rate adjustment by the Federal Reserve (Fed) in the upcoming meetings in March and May.


USD/CHF maintains its downward trajectory, trading lower around 0.8850 during Friday’s Asian session. The US Dollar (USD) faces depreciation against the Swiss Franc (CHF) as US Treasury yields decline, driven by improved risk appetite.


Oil prices stalled on Friday over a forecast of slowing demand by the International Energy Agency after gaining in the previous session on weak U.S. retail sales data that sparked optimism that the Fed might cut interest rates sooner than expected.


Gold treads water just above $2,000, consolidating its rebound from two-month lows of $1,984 set on Wednesday. The further upside in XAU/USD price appears elusive, as the US Dollar has regained lost footing amid a modest recovery in the US Treasury bond yields and a cautiously optimistic market environment.

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