Market Update - 29 January 2024

EUR/USD trades lower around 1.0840 during the Asian session on Monday, retracing its recent gains. The pair experiences downward pressure due to the risk-off mood, which could be attributed to the escalated tension in the Middle East after a drone attack on a United States (US) post in Jordon, killed three US personnel. (FXStreet)

USD/JPY has lacked directional conviction in recent sessions, moving between overhead resistance at 148.80 and horizontal support at 147.40. Next week, however, could see more significant moves, as the Federal Reserve’s decision should to inject heightened volatility into financial markets. (DailyFX)

The GBP/USD pair ticks higher following an Asian session dip on Monday, albeit lacks follow-through and remains confined in a familiar range held over the past two weeks or so. Spot prices currently trade around the 1.2700 mark, nearly unchanged for the day as traders await a fresh catalyst before positioning for a firm near-term trajectory. (FXStreet)

The USD/CHF continues to lose ground for the second straight session, edging lower to near 0.8640 during the Asian hours on Monday. The Swiss Franc (CHF) appears to be in demand against the US Dollar (USD), driven by an increase in risk aversion sentiment. This demand for the CHF could be attributed to heightened tensions in the Middle East, as geopolitical uncertainties often lead investors to seek safe-haven currencies like the Swiss Franc. (FXStreet)

The USD/CAD pair remains on the defensive for the third successive day on Monday, albeit lacks follow-through selling and manages to hold above last week's swing low, around the 1.3415 region. Moreover, a combination of diverging forces warrants some caution before placing aggressive bearish bets and positioning for an extension of the recent pullback from the vicinity of the monthly peak tested last Thursday. (FXStreet)

NZD/USD makes gains after two days of losses, rebounding to near 0.6110 during the early European session on Monday. Despite the risk aversion sentiment following the drone attack on a United States (US) post in Jordan on Sunday, the NZD/USD pair moved upward amid a stable US Dollar (USD). (FXStreet)

Indian Rupee (INR) loses traction on Monday amid the rebound of the US Dollar (USD). INR is expected to have a quiet session on Monday as traders turn to cautious mode ahead of the Federal Open Market Committee (FOMC) policy meeting and the presentation of India's federal budget later in the week. (FXStreet)

The USD/IDR pair gathers strength during the early European session on Monday. The pair currently trades around 15,830 after retreating from a fresh top of 2024 at 15,844. Investors await the Federal Reserve's (Fed) monetary policy meeting on Wednesday and Indonesia’s inflation report on Thursday for fresh catalysts. (FXStreet)

The EUR/JPY cross loses traction below the mid-160s during the early European trading hours on Monday. The preliminary German Gross Domestic Product for the fourth quarter will be released on Tuesday. The quarterly and annual are estimated to shrink by 0.3% and 0.2%, respectively. At press time, the cross is trading at 160.45, losing 0.17% on the day. (FXStreet)

On Monday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1097 as compared to Friday's fix of 7.1074 and 7.1785 Reuters estimates. (FXStreet)

West Texas Intermediate (WTI) oil price extends its gains for the fourth consecutive session, trading higher near $78.30 per barrel on Monday, by the press time. WTI prices reached the monthly peak at $79.19 during the early Asian hours but have since pared some of their intraday gains. However, the surge in Crude oil prices was driven by concerns about potential supply disruptions following a missile attack on a fuel tanker in the Red Sea. (FXStreet)

Gold price (XAU/USD) catches fresh bids on the first day of a new week and builds on its steady intraday ascent through the early part of the European session. The precious metal breaks through the 50-day Simple Moving Average (SMA) barrier, though bulls need to wait for a move beyond the $2,040-2,042 supply zone before positioning for any further gains ahead of the FOMC decision on Wednesday. (FXStreet)

Silver price (XAG/USD) jumps to near $23 as deepening geopolitical tensions improve appeal for bullions. The white metal witnesses significant buying interest as volatility expands due to deepening Middle East crises. (FXStreet)

Source: FXStreet, DailyFX

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