Market Update - 08 January 2024

The EUR/USD pair loses ground around 1.0935 during the early European session on Monday. The downtick of the major pair is backed by a stronger US Dollar (USD) and higher US Treasury bond yields. The US labor data on Friday cast doubt on the Federal Reserve's (Fed) rate cut expectation. The US Nonfarm Payrolls (NFP) rose by 216,000 in December from 173,000 in November, better than the market expectation of 170,000. (FXStreet)

GBP/USD halts its winning streak that began on Wednesday, trading around 1.2710 during the Asian session on Monday. However, the Pound Sterling (GBP) received upward support against the US Dollar (USD) on improved risk appetite after the mixed economic data from the United States (US). (FXStreet)

The USD/CHF pair gains momentum during the early European trading hours on Monday. The recovery of the US Dollar (USD) and higher US Treasury bond yields lend some support to the pair. USD/CHF currently trades near 0.8515, up 0.13% on the day. (FXStreet)

USD/CAD continues to gain ground for the second straight day, trading near 1.3380 during the European session on Monday. The Canadian Dollar (CAD) receives downward pressure against the US Dollar (USD) due to the decline in Crude oil prices. (FXStreet)

NZD/USD displays sideways movement amid a steady US Dollar (USD), trading higher around 0.6240 during the early European hours on Monday. The technical indicator, the 14-day Relative Strength Index (RSI), is positioned above the 50 level, signaling strong momentum. This suggests that the NZD/USD pair could gear up to test the major resistance at 0.6250, followed by the nine-day Exponential Moving Average (EMA) at 0.6261. (FXStreet)

USD/MXN hovers around 16.88 during the European session on Monday. The USD/MXN pair faced downward pressure following the release of the latest Bank of Mexico (Banxico) minutes on Thursday, indicating concerns about the inflationary scenario in the country. The minutes suggest a challenging environment, prompting the decision to maintain interest rates at their current levels for a certain period. (FXStreet)

Indian Rupee (INR) kicks off the new week on a positive note on Monday. Foreign capital inflows and the Reserve Bank of India’s (RBI) intervention have been supporting the INR from any major depreciation. The government revealed the First Advance Estimates (FAEs) of India’s GDP on Friday. The report suggested that India's Gross Domestic Product (GDP) will expand by 7.3% in the current fiscal year (2023–24), which is slightly faster than the 7.2% growth in 2022–23. (FXStreet)

GBP/USD halts its three-day winning streak, trading around 1.2700 psychological level during the Asian session on Monday. The GBP/USD pair seems to face a critical juncture, with the possibility of a break below the psychological level. If this occurs, it could surpass the 14-day Exponential Moving Average (EMA) at 1.2692. (FXStreet)

On Monday, the People’s Bank of China (PBoC) sets the USD/CNY central rate for the trading session ahead at 7.1006 as compared to Friday's fix of 7.1029 and 7.1499 Reuters estimates. (FXStreet)

EUR/GBP remains a pair for range traders with the body of the rough 0.8500 to 0.8765 range solidly in place for a few months. The CCI indicator at the bottom of the chart has been effective, showing oversold and overbought conditions, and while it is a lagging indicator it has been timely in highlighting a range trend change. The current price is nearing the middle of the recent range, suggesting a neutral approach to the pair, but if all three simple moving averages are broken then the move lower looks set to continue. (DailyFX)

The West Texas Intermediate (WTI) price retraces its recent gains, trading lower near $73.00 per barrel during the Asian session on Monday. The decline in Crude oil prices is attributed to a combination of factors, including price cuts by top exporter Saudi Arabia. (FXStreet)

Gold price (XAU/USD) meets with a fresh supply on the first day of a new week and slides back closer to over a two-week low touched in the aftermath of the upbeat US monthly employment details on Friday. The popularly known Nonfarm Payrolls (NFP) report pointed to a still resilient US labor market and gives the Federal Reserve (Fed) more headroom to keep rates higher for longer. Furthermore, the recent hawkish remarks by Fed officials forced investors to continue scaling back their expectations for a more aggressive policy easing. This, in turn, remains supportive of elevated US Treasury bond yields and is seen driving flows away from the non-yielding yellow metal. (FXStreet)

Silver (XAG/USD) extends Friday's retracement slide from the mid-$23.00s and continues losing ground through the early part of the European session on the first day of a new week. The white metal currently trades just below the $23.00 round figure and remains well within the striking distance of a three-week trough touched last Thursday. (FXStreet)

Bitcoin had a strong performance this year, rallying from an opening level of around $16.6k to a recent high of $44.7k with little in the way of notable pullbacks along the way. The strong bottoming-out pattern between November 2022 and January 2023 prompted a wave of higher lows and higher highs throughout the year, culminating in an 80% rally between early September and early December. The next target on the weekly chart is just above $48k, the end of March swing high. (DailyFX)

Source: FXStreet, DailyFX

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