Market Update - 05 January 2024

EUR/USD retreats from 1.0950 amid caution ahead of US labor market data. The Eurozone HICP data is seen higher due to base effects. Eurozone bulls may find interest after further correction to near 1.0880. (FXStreet)

USD/CHF continues to gain mild profits as the US Dollar retraces its recent losses. The prevailing risk-off mood, driven by expected sluggish global growth, supports the Greenback. Traders await pivotal Swiss Inflation and Real Retail Sales data to gain further impetus on the economic scenario.  (FXStreet)

USD/CAD recovers its losses on improved US Dollar. The improvement in WTI price could contribute to support for the Canadian Dollar. Improved US bond yields steer the Greenback on an upward pathway. (FXStreet)

GBP/USD gains ground as the US Dollar moves in the negative territory. Low-impact upbeat UK data might have reinforced the strength of the British Pound. Upbeat US labor data limited the losses of the Greenback. (FXStreet) 

EUR/USD attracts buyers for the second straight day and draws support from a combination of factors. Reduced bets for more aggressive ECB easing in 2024 underpin the Euro and subdued USD demand. Diminishing odds for multiple Fed rate cuts to limit the USD downside and cap gains for the major. Traders might also prefer to wait on the sidelines ahead of the Eurozone CPI and the US NFP report. (FXStreet) 

The EUR/GBP currently stands at 0.8630, marking a slight gain of 0.20%. The RSI and MACD on the daily chart suggest that bears are taking a breather. The pair remains below key SMAs, reflecting a broader selling bias. (FXStreet)

EUR/JPY's rallies but the bearish bias remains in place Technical outlook shows potential resistance near 158.35, with 159.00 and 160.00 as subsequent targets on a break higher. Sellers could target supports at Kijun-Sen, Tenkan-Sen, and the January 2 low at 155.06. (FXStreet)

NZD/USD consolidates post-recent losses ahead of US Nonfarm Payrolls data. The pair could surpass 0.6250 to test seven-day EMA at 0.6261. MACD suggests a shift toward bearish market sentiment. (FXStreet)

NZD/JPY's 0.70% surge driven by Japanese Yen's broad weakness, indicating a bullish turn above the Ichimoku cloud. Upcoming resistance challenges include cycle high at 90.43 and the key 91.00 psychological level. Bears could regain ground, targeting supports at Kumo’s top, the Kijun-Sen, and Kumo’s bottom. (FXStreet)

AUD/JPY saw a significant rally, currently positioned at 96.90, marking an uptick of 0.60%. Positive momentum is highlighted in the daily chart, with indicators signaling bullish activity. Consolidating gains are evident in the four-hour chart outlook. (FXStreet)

The DXY Index recovered from a daily low of around 102.20 to trade flat on the day. ADP Employment Change figures from December came in better than expected. Weekly Jobless Claims were also positive. Weak S&P Global PMI data may limit the upside for the USD. Dovish bets on the Federal Reserve (Fed) eased somewhat but are still high. (FXStreet) 

WTI price experienced losses on a surge in US gasoline and distillate inventories. US EIA Crude Oil Stocks Change declined to 5.503M barrels against the estimated 3.725M barrel decline. US administration has repurchased 13.82M barrels of domestically produced oil to replenish the SPR. (FXStreet)

Gold price struggles to gain any meaningful traction and oscillates in a narrow range on Friday. Reduced bets for more aggressive policy easing by the Fed seem to cap the upside for the metal. Traders also seem reluctant to place aggressive bets ahead of the US monthly jobs report (NFP). (FXStreet)

Silver meets with a fresh supply following an intraday uptick to the $23.20 area on Friday. The technical setup favours bearish traders and supports prospects for a further downfall. Any attempted recovery move might continue to attract fresh sellers and remain capped.

Source: FXStreet

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