Market Update - 10 January 2024

EUR/USD consolidates after posting recent losses in the previous session, trading near 1.0930 during the Asian session on Wednesday. The EUR/USD pair could meet the barrier at the major level at 1.0950 following the psychological resistance area at 1.1000. (FXStreet)

USD/JPY turned higher after reaching the late December swing low but momentum was culled last Friday after the ISM services PMI report revealed a sharp drop in the composite measure as well as the employment component of the report. Admittedly, the drop can be attributed to fewer hires and less so to increased layoffs, but the lower reading speaks to a labour market that is easing, while remaining resilient overall. (DailyFX)

GBP/USD is in focus as it hovers around 1.2710 during the Asian session on Wednesday. After a recent dip that interrupted a four-day winning streak, the Pound Sterling (GBP) found support against the US Dollar (USD). The improved market risk appetite, driven by comments from Federal Reserve (Fed) members speculating about potential rate cuts by the end of 2024, contributed to a weaker US Dollar. However, a sudden shift in sentiment towards risk aversion added pressure, impacting the GBP/USD pair. (FXStreet)

USD/CHF stays calm after gaining profits in the previous session, hovering near 0.8520 during the Asian session on Wednesday. The US Dollar Index (DXY) maintains its position above 102.50 amid steady US bond yields, with the 2-year and 10-year yields standing at 4.35% and 4.02%, respectively. (FXStreet)

The USD/CAD pair edges higher to the 1.3400 neighbourhood heading into the European session on Wednesday, albeit remains below a multi-week high touched the previous day. (FXStreet)

The NZD/USD pair struggles for a direction as investors await the United States Consumer Price Index (CPI) data for December, which is scheduled for Thursday. The Kiwi asset trades back-and-forth around 0.6240 amid hopes that the release of the US inflation data will provide fresh cues about the likely monetary policy action by the Federal Reserve (Fed) for January’s monetary policy meeting. (FXStreet)

USD/MXN continues to gain ground, advancing further near 16.99 during the European session on Wednesday. The USD/MXN pair received upward support from the risk-off market sentiment. However, the upward trend in Mexico's consumer inflation might influence the Bank of Mexico (Banxico) to adopt a measured approach to easing monetary policy in the upcoming period. This is expected to provide support for the Mexican Peso (MXN) in the foreseeable future. (FXStreet)

NZD/USD attempts to recover the recent losses registered on Tuesday, trading slightly higher near 0.6240 during the Asian session on Wednesday. The New Zealand Dollar (NZD) registered losses against the US Dollar in the previous session as the risk-on sentiment shifted to risk aversion. Traders are now looking ahead to Thursday's release of November's Building Permits data from New Zealand, following a reported 8.7% rise in October. (FXStreet)

The People’s Bank of China (PBoC) sets the USD/CNY central rate for the trading session ahead on Wednesday at 7.1055 as compared to the previous day's fix of 7.1010 and 7.1618 Reuters estimates. (FXStreet)

EUR/JPY regained lost ground last week after bouncing off trendline support and the 200-day simple moving average, but its recovery stalled when prices failed to clear a major ceiling around the 158.75 mark, a rejection that triggered a modest pullback in recent sessions. (DailyFX)

GBP/JPY staged a strong rally and climbed nearly 2.5% last week, but bullish momentum has started to wane over the past few days after an unsuccessful attempt at overtaking cluster resistance around the psychological 184.00 level, as shown in the daily chart below. (DailyFX)

West Texas Intermediate (WTI) Crude Oil prices attract some buyers for the second successive day on Wednesday, albeit lack follow-through and remain below the overnight swing high through the first half of the European session. The commodity currently trades just below mid-72.00s, up nearly 0.35% for the day. (FXStreet)

Gold price (XAU/USD) struggles to gain any meaningful traction following the previous day's late pullback from the $2,040 area and oscillates in a narrow trading band during the Asian session on Wednesday. Traders now seem reluctant and prefer to wait for the release of the latest consumer inflation figures on Thursday before placing fresh directional bets. (FXStreet)

Silver (XAG/USD) drifts lower for the third successive day on Wednesday and drops to a fresh weekly low, around the $22.80 region during the early European session. (FXStreet)

Source: FXStreet, DailyFX

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