Market Update - 28 December 2023

EUR/USD maintains its winning streak, with the Euro (EUR) gaining ground against the subdued US Dollar (USD). This trend is likely influenced by the anticipated dovish stance of the US Federal Reserve (Fed) on the interest rate trajectory. The EUR/USD pair trades around the 1.1110 level during the Asian session on Thursday. (FXStreet)

USD/JPY extends its losses as the US Dollar (USD) weakens on the back of the dovish Federal Reserve’s (Fed) outlook in the first quarter of 2024. The USD/JPY pair trades lower around 140.80 during the early European session on Thursday. The 141.00 psychological level emerges as the immediate resistance following the next barrier at the 142.00 level. (FXStreet)

The GBP/USD pair extends its upside above the 1.2800 mark during the Asian trading hours on Thursday. The decline in inflationary pressure in the US economy and dovish comments from the Federal Reserve (Fed) have dragged the US Dollar (USD) lower and lent some support to GBP/USD. At press time, the major pair is trading at 1.2810, up 0.09% on the day. (FXStreet)

USD/CHF posted an all-time low at 0.8394 during the Asian trading hours on Thursday, trading around 0.8400 at the time of writing. The USD/CHF faces challenges due to the weaker US Dollar (USD). The escalated geopolitical situation in the Middle East is fostering risk aversion, leading to an increase in demand for the safe-haven Swiss Franc (CHF). (FXStreet)

The USD/CAD pair trades in negative territory for the third consecutive week during the early European session on Thursday. The downward momentum of the pair is backed by the softer US Dollar (USD) and the lower US Treasury bond yields. The last week of 2023 is likely to be quiet as traders turn to holiday mode. At press time, USD/CAD is trading at 1.3204, losing 0.02% on the day. (FXStreet)

USD/MXN attempts to snap its recent losses, holding ground near 16.91 during the European session on Thursday. The USD/MXN faces challenges due to the weaker US Dollar (USD), which could be attributed to the potential for rate cuts by the Federal Reserve (Fed) in the first quarter of 2024. (FXStreet)

The NZD/USD pair trades on a stronger note above the 0.6350 area. The upward momentum of the pair is supported by the weaker US Dollar (USD) and risk appetite amid the thin trading volume in the last week of 2023. At press time, NZD/USD is trading at 0.6360, up 0.34% for the day. (FXStreet)

Indian Rupee (INR) holds positive ground on Thursday amid the US Dollar (USD) weakness. India is set to become the world's third-biggest by 2032 and will eventually surpass China and the United States to become the "world's largest economic superpower" by 2100, the Centre for Economics and Business Research (CEBR) stated in its report on Wednesday. Earlier this week, Fitch Ratings projected India to be the world’s fastest-growing country, with resilient GDP growth of 6.5% during fiscal 2024–25. (FXStreet)

USD/JPY continues its losing streak for the second straight session, trading lower around 141.30 during the Asian hours on Thursday. The improved Japanese trade data for November put pressure on the USD/JPY pair. However, the less aggressive remarks from the Bank of Japan (BoJ) Governor Kazuo Ueda could weigh on the Japanese Yen (JPY). (FXStreet)

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $74.30 on Thursday. The recovery of WTI prices is bolstered by the softer US Dollar (USD), which lends some support to USD-denominated commodities. (FXStreet)

Gold price trades higher around its three-week high near $2,088 per troy ounce during the Asian session on Thursday. The improved risk appetite due to the potential for rate cuts by the Federal Reserve (Fed) in the first quarter of 2024, is giving rise to the price of the yellow metal. (FXStreet)

Source: FXStreet

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