Market Update - 22 January 2024

EUR/GBP extends gains as the ECB is expected to not adjust its monetary policy. ECB President Christine Lagarde has shifted expectations for a rate cut to late summer. The disappointing UK Retail Sales data has contributed pressure to undermining the Pound Sterling. (FXStreet)

USD/CAD drops to near 1.3440 on upbeat market mood. Lower oil prices weigh on the Canadian Dollar. USD/CAD hovers near the lower leg of the Rising Channel pattern. (FXStreet)

EUR/JPY gains ground near 161.48 ahead of the Bank of Japan's (BoJ) key event. The bullish outlook of the cross remains intact above the key EMA; RSI indicator stands in bullish territory. 161.60 acts as an immediate upside barrier for the cross; the critical support level to watch is at 160.65. (FXStreet)

GBP/USD gains traction near 1.2722 on a risk-on mood.  The pair resumes its uptrend above the 100-hour EMA; RSI indicator stands in bullish territory above the 50 midline. The first upside barrier is located at 1.2725; the initial support level is seen at 1.2655. (FXStreet)

USD/CHF moves on an upward trajectory after hawkish remarks from the Fed members. Fed’s Mary Daly stated that the central bank has substantial work in achieving the 2.0% inflation target. Swiss Franc continues to lose ground after SNB Jordan’s warning on appreciated CHF. (FXStreet)

The DXY Index trades just below the 200-day SMA as bulls are struggling to hold their ground. Existing Home Sales from December were weak, while the University of Michigan Consumer Sentiment arrived better than expected. Dovish bets on the Fed remain high. (FXStreet)

GBP/JPY fluctuates, impacted by Japanese CPI and weak UK retail sales; currently at 188.11. Bullish bias persists, but a close below 188.22 may trigger retracement towards 187.00 and potential support levels. Break above 188.00 sets the stage for further gains, targeting YTD high at 188.92 and potentially reaching 190.00. (FXStreet)

EUR/USD could find immediate resistance at 23.6% Fibonacci retracement level at 1.0913. A breakthrough above the 14-day EMA at 1.0922 could lead the pair to reach the major level at 1.0950. A break below the psychological level at 1.0900 could push the pair to revisit the monthly low at 1.0884. (FXStreet)

GBP/USD moves higher on the subdued US Dollar amid a risk-on sentiment. The softer UK Retail Sales data might have contributed to the losses of the British Pound. US Dollar could draw support from safe-haven status during escalated geopolitical threats in the Middle East. (FXStreet)

NZD/USD continues to lose ground as the US Dollar recovers intraday losses. The improved risk appetite weighs on the Greenback. New Zealand Dollar faces challenges due to the decline in the domestic manufacturing sector. (FXStreet)

AUD/USD oscillates near 0.6600 amid the risk rally in the market. US University of Michigan consumer sentiment rose in January to its highest since July 2021. The Australian Unemployment Rate came in at 3.9% in December vs. 3.9% prior; Employment Change arrived at -65.1K vs. 17.6K expected. The US GDP growth numbers (Q4) and the Core PCE will be the highlights this week. (FXStreet)

USD/MXN attempts to snap its losing streak on improved Greenback. US Dollar could face pressure as the Fed is expected to reduce policy rates more than other major central banks in 2024. The downbeat Mexico Retail Sales data might have put downward pressure on the MXN. (FXStreet)

WTI Oil prices remain under some selling pressure for the second straight day on Monday. Concerns over a near-term slowdown in demand continue to undermine the black liquid. Fears of supply disruptions in the Middle East could lend support and limit deeper losses. (FXStreet)

Gold price meets with a fresh supply on Monday and snaps a two-day winning streak. Reduced bets that the Fed will cut rates in March act as a headwind for the XAU/USD. Retreating US bond yields, softer USD and geopolitical risk could limit deeper losses. (FXStreet)

Silver holds ground at $22.50, resilient amid losses, finding strong support at this key level. US Consumer Sentiment boost lifts US Treasury yields, affecting XAG/USD dynamics. Mixed economic signals: Wall Street gains, but US Existing Home Sales hit 13-year low; improved inflation outlook. (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.