Market Update - 03 January 2024

EUR/GBP posts modest losses around 0.8670 on Wednesday. The UK S&P Global PMI arrived at 46.2 vs. 46.4 prior, below the consensus. The Eurozone HCOB Manufacturing PMI climbed to 44.4 in December 2023 from 44.2 in November, beating the expectation. Traders will take more cues from the release of German employment data, due on Wednesday. (FXStreet)

USD/CAD moves sideways after halting a winning streak that began on December 27. MACD indicator suggests a potential shift in the pair’s direction. A break above the 23.6% Fibonacci retracement at 1.3351 could lead the pair to surpass the 21-day EMA at 1.3363. (FXStreet)

EUR/JPY gains ground near 155.61 on Wednesday. The cross maintains a bearish outlook below the key EMA; the RSI indicator stands below the 50 midline. The first upside barrier will emerge at 156.38; 155.05 acts as an initial support level for EUR/JPY. (FXStreet)

USD/CHF retraces recent gains as the US Dollar halts its winning streak. IMF Managing Director Kristalina Georgieva’s moderate comments could weaken the Greenback. Traders await Swiss Manufacturing PMI data to gain fresh impetus on the Swiss economy. (FXStreet)

EUR/USD regains positive traction on Wednesday and snaps a three-day losing streak. A modest USD downtick lends support ahead of the US macro data and FOMC minutes. A convincing break below the 50% Fibo. might shift the bias in favour of bearish traders. (FXStreet)

GBP/USD halts its losing streak while US Dollar stays calm after a recent surge. IMF Managing Director Kristalina Georgieva expects policy rates to be reduced in 2024 due to a decline in inflation. UK executives urge the BoE to lower interest rates as the Economic Confidence Index fell to 28 from the previous month's decline of 21. (FXStreet)

USD/JPY trades in positive territory for two straight days on Wednesday. The US final Manufacturing PMI for December came in weaker than expected, easing from 48.2 to 47.9. BOJ’s Ueda said that the possibility of the BoJ sustainably achieving the inflation target seems to be gradually rising. Investors await the final US ISM Manufacturing PMI report and the Fed’s latest Meeting Minutes, due later on Wednesday. (FXStreet)

NZD/USD recovers from 0.6250 as the US Dollar turns sideways ahead of FOMC minutes. The likelihood of an interest rate cut by the Fed in March 2024 has dropped slightly. NZD/USD manages to sustain inside the Rising Channel chart pattern. (FXStreet)

WTI price receives downward pressure US Dollar improves on risk-off sentiment. The expected higher oil supply in the first half of 2024 put pressure on Crude oil prices. OPEC+ plans to convene a JMMC meeting in early February to assess the adherence to its production agreements. (FXStreet)

Gold price attracts some intraday sellers amid a modest USD uptick, albeit lacks follow-through. Elevated US bond yields lend some support to the buck and act as a headwind for the XAU/USD. Fed rate cut bets, geopolitical risks and China’s economic woes should help limit deeper losses. Traders might also prefer to wait for the US macro data and the crucial FOMC meeting minutes. (FXStreet)

Silver drifts lower for the fourth straight day and touches a near three-week trough. The technical set-up favours bearish traders and supports prospects for further losses. A sustained strength beyond the $24.00 mark is needed to negate the negative outlook. (FXStreet)

Source: FXStreet

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