ATFX Daily Market Newsletter

Market Update - 26 December 2023

Publish date: Tue, 26 Dec 2023, 05:37 PM
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ATFX Daily Market Newsletter

The US Dollar is rebounding from Friday’s selloff as investors gear up for holiday. The Loonie briefly rallied to a fresh 19-week high as rate-hungry markets pummel the USD. USD/CAD set for a fifth weekly decline in six straight weeks. (FXStreet)

EUR/USD hits 18-week high on Friday. Pre-holiday markets are producing some rough chop heading towards the Friday close. Slowing US inflation is pushing down the Greenback as markets bet on rate cuts. (FXStreet)

USD/JPY continues to decline further towards 140.00 amid soft US Dollar. Investors await the US core PCE price index data for further guidance. USD/JPY may find an intermediate cushion near upward-sloping trendline. (FXStreet)

The GBP/USD is holding on the high side after US PCE inflation settled further on Friday. UK Retail Sales grew in November, Pound Sterling bidders shrug off UK GDP QoQ decline. US Dollar flows are decidedly bearish, propping up the broader market. (FXStreet)

US consumer inflation declined more than expected in November. US Dollar Index slides to its lowest level since July 27. The AUD/USD holds firm, maintaining important weekly gains. (FXStreet)

The New Zealand Dollar bounces up and heads to levels beyond 0.6300. The US Dollar remains on the defensive following downbeat US GDP data on Thursday. Investors await the release of the US PCE inflation to assess the timing of the Fed's pivot. (FXStreet)

USD/CHF: Retail trader data shows 91.27% of traders are net-long with the ratio of traders long to short at 10.46 to 1. Our data shows traders are now at their most net-long USD/CHF since Jul 14 when USD/CHF traded near 0.86. The number of traders net-long is 0.59% higher than yesterday and 17.01% higher from last week, while the number of traders net-short is 19.67% lower than yesterday and 25.76% lower from last week. (DailyFX)

USD/MXN extends losses as the Greenback weakens on speculation of Fed to ease policy tightening. The softer US bond yields contributed to downward pressure on the US Dollar. US GDP Annualized eased at 4.9% in Q3, while the Philadelphia Fed Manufacturing Survey declined by 10.5 in December. Mexico's 1st half-month Inflation rose by 0.52%, while Core Inflation eased to 0.46% in December. (FXStreet)

The Euro fails at 0.8690, the 61,8% Fib. retracement of the late November decline. UK economy contracted in the third quarter, against expectations. UK retail sales bounce up unexpectedly and ease negative pressure on the Pound. (FXStreet)

GBP/JPY retreats from 181.00 as recession fears in the UK economy deepen. BoE policymakers may get puzzled between recession and persistent inflation fears. Japan’s inflation remains above 2% for the 20th month in a row. (FXStreet)

WTI Oil pops back above $74 in a volatile week ahead of Christmas. Angola announced on Thursday it will leave OPEC in January. The DXY US Dollar Index flirts with a substantial breakdown that could erase a half year worth of gains. (FXStreet)

The US Dollar Index (DXY) lost ground for the second week in a row, falling to monthly lows, below 102.00. It continues to move with a bearish bias, on the back of risk appetite and lower yields. Market repricing expectations from the Federal Reserve (Fed) in 2024 keep the Greenback under pressure. (FXStreet)

Gold pulls back after testing $2,070 ahead of Friday’s pre-holiday close. Rising investor bets of faster, more frequent Fed rate cuts squeeze Gold higher. US inflation continues to cool off, Treasuries ease back amidst risk appetite recovery. (FXStreet)

Silver price recovers swiftly after softer-than-projected US core PCE inflation report. Sost underlying inflation data has boosted Fed’s rate cut bets. The US Durable Goods Orders rose strongly by 5.4% vs. consensus of 2.2%. (FXStreet)

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

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