Market Update - 26 January 2024

EUR/USD continues to move in a downward direction after the US GDP data. Technical analysis suggests a bearish sentiment towards the monthly at 1.0821. A break above 1.0850 could support the pair to approach the resistance zone around the 23.6% Fibonacci retracement and the 21-day EMA. (FXStreet)

EUR/GBP remains under pressure near 0.8530 amid the ECB’s dovish stance.  The European Central Bank (ECB) held interest rates steady at their current record high on Thursday. Improved UK Manufacturing PMI data might convince the BoE to hold interest rates higher for longer than expected.  (FXStreet)

USD/CHF could gain ground due to the hawkish sentiment surrounding the Fed. US GDP Annualized (Q4) printed a 3.3% figure against the expected 2.0% and 4.9% prior. Swiss policymakers will likely observe Real Retail Sales and the ZEW Survey to decide on the SNB's (SNB) monetary policy. (FXStreet)

EUR/JPY recovers some lost ground near 160.20 on the softer Japanese inflation data.  The bullish outlook of the cross remains intact above the key Exponential Moving Averages (EMA).  The key resistance level is seen at 161.00; the 159.90-160.00 zone is the crucial support level.  (FXStreet)

USD/CAD grapples to find a direct after registering losses on Thursday. The 23.6% Fibonacci retracement at 1.3455 and the major level at 1.3450 could act as the key support levels. Technical analysis indicates an upward trend towards the psychological level at 1.3500. (FXStreet)

GBP/USD remains confined in a narrow trading range during the Asian session on Friday. Traders wait for the release of the US PCE Price Index before placing fresh directional bets. A breakthrough a descending trend-line is needed to support prospects for additional gains. (FXStreet)

GBP/JPY languishes above the weekly trough amid mixed fundamental cues. The JPY benefits from geopolitical risks, though weaker Tokyo CPI cap gains. Bets that the BoE will hold rates near a 16-year high help limit the downside. (FXStreet)

NZD/USD moves on a downward trajectory after the stronger US GDP figures. Traders await US PCE data to gain cues regarding the Fed’s policy decision in March’s meeting. NZD could gain ground as Kiwi consumer inflation remains above the RBNZ target range of 1.0% to 3.0%. (FXStreet)

WTI price is expected to close the week in a positive territory due to multiple factors. US GDP data contributed support to reinforcing the Crude oil prices. PBoC’s strategy to inject liquidity into the economy contributes to the strength in oil prices. Chinese officials asked their Iranian counterparts to help restrain attacks on ships in the Red Sea. (FXStreet)

Gold price lacks any firm intraday direction amid a combination of diverging forces.  Delayed Fed rate cut bets underpin the USD and act as a headwind for the commodity. Geopolitical risks and the uncertain global economic outlook lend support to the metal. Traders also seem reluctant to place directional bets ahead of the US PCE Price Index. (FXStreet)

Silver price faces some pressure while attempting to extend rally above $23. The market mood is downbeat as investors await the core PCE price index data for December. Strong GDP numbers and stubborn inflation data could allow Fed to maintain a hawkish interest rate stance. (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.