Market Update - 04 January 2024

EUR/USD gains ground on the decline of the US Dollar. Eurozone Composite and Services PMI improved to the figures of 47.6 and 48.8, respectively. The decline in the US bond yields weakens the Greenback. (FXStreet)

GBP/JPY rises swiftly above 182.00 amid uncertainty over timeframe of BoJ’s exit to loose policy. The UK Composite and Services PMI are seen remaining unchanged. Advancing 20-EMA indicates strength in the bullish bias. (FXStreet)

EUR/GBP remains on the defensive near 0.8625, ahead of Eurozone mid-tier data. The German Unemployment Rate remained flat at 5.9%, as expected. Traders anticipate that the Bank of England (BoE) will cut rates as soon as May 2024. (FXStreet)

EUR/JPY holds positive ground near 157.10 on Thursday. The cross resumes its uptrend above the key 100-hour EMA; RSI indicator stands above the 50 midline. The first upside barrier is seen at 157.73; 155.65 acts as an initial support level for EUR/JPY. (FXStreet)

USD/CHF faces barriers despite improved Greenback. SNB might have intervened in the foreign exchange market to support the Swiss Franc. The risk-off mood turned the investors toward the US Dollar. (FXStreet)

USD/CAD receives downward pressure as Crude oil prices improve. WTI price gains ground on the heightened situation in the Red Sea. US Dollar might have cheered up the improved ISM Manufacturing data. (FXStreet)

GBP/USD struggles to gain any meaningful traction amid a mixed fundamental cue. An uptick in the US bond yields underpins the USD and cap the upside for the pair. Traders also seem reluctant and keenly await the release of the US NFP on Friday. (FXStreet)

AUD/NZD briefly sagged below 1.0770 in early Thursday trading. Long-term congestion around the 200-day SMA continues below 1.0800. 2024 kicks off with continued sideways grind between familiar peaks and lows. (FXStreet)

NZD/USD could face challenges on risk-off market sentiment. A break above 0.6300 could support the pair to approach the weekly high at 0.6329. The lagging indicator MACD could give confirmation of the downward trend. (FXStreet)

AUD/JPY edges down to 96.35 after a 0.46% gain, with bullish-harami pattern suggesting potential upside momentum. Buyers aim for the January 2 high of 96.71 and the 97.00 mark, with subsequent resistance levels at 97.67 and 98.00. If the upside is capped, sellers might target Senkou Span B at 96.14 and Kijun Sen at 95.90, with 94.58 as further support. (FXStreet)

The NZD/JPY stands elevated after a rally towards 89.40, giving it a breather from its recent trailing losses. Daily chart indicators like the hint at potential buying momentum despite being in negative territory. Regardless of the short-term negative outlook, above 20,100,200-day SMAs indicates a broader bullish control. (FXStreet)

WTI price soars on heightened tensions about maritime security in the Red Sea. Houthis launched two anti-ship ballistic missiles targeting a container ship on its way to Israel. Libya's major Sharara oilfield with a capacity of up to 300,000 bpd, has been completely shut down due to local protests. (FXStreet)

Gold price attracts some buying and moves further away from over a one-week low set on Wednesday. Geopolitical risks, China's economic woes and renewed USD selling lend some support to the metal. An uptick in the US bond yields cap gains for the XAU/USD ahead of the key US labor market reports. (FXStreet)

Silver consolidates its recent losses to a near three-week low touched on Wednesday. The technical setup favours bearish traders and supports prospects for further losses. Any attempted recovery could be seen as a selling opportunity and remain capped. (FXStreet)

Source: FXStreet

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.