Market Update - 30 January 2024

EUR/USD hovers around 1.0830 during the Asian session on Tuesday after trimming its intraday gains. The EUR/USD pair grapples to recover the losses registered in the previous session. The significant level at 1.0850 may act as immediate resistance for the EUR/USD pair. (FXStreet)

USD/JPY price action appears to have formed a bullish pennant, a bullish continuation pattern. On an intra-day basis though, USD/JPY is down on the day thus far when the likes of EUR/USD and GBP/USD both appear susceptible to dollar strength. The yen has often been driven by the first eventual interest rate hike from the BoJ in years but easing inflation had tempered those expectations. (DailyFX)

The GBP/USD pair remains confined in a narrow trading range above the 1.2700 mark during the early European trading hours on Tuesday. Investors prefer to wait on the sidelines ahead of key events from the Federal Reserve (Fed) and the Bank of England (BoE). At press time, GBP/USD is trading at 1.2708, down 0.02% on the day. (FXStreet)

USD/CHF attempts to retrace its recent losses, inching higher around 0.8620 during the Asian session on Tuesday. However, the US Dollar (USD) has faced a challenge against the Swiss Franc (CHF) due to the decline in US Treasury yields. The release of an improved US balance sheet has supported prices for US Treasury bonds, which, in turn, puts downward pressure on US yields. (FXStreet)

The USD/CAD pair trades on a softer note for the fourth consecutive day during the early European session on Tuesday. The higher oil prices amid the ongoing geopolitical tensions in the Middle East lift the commodity-linked Loonie and weigh on the USD/CAD pair. The pair currently trades around 1.3405, losing 0.04% on the day. (FXStreet)

NZD/USD inches higher for another session, trading around 0.6140 during the early European hours on Tuesday. The US Dollar (USD) has faced a challenge on downbeat US Treasury yields. The release of an improved US balance sheet has supported US Treasury bond prices, which, in turn, puts downward pressure on the Greenback. (FXStreet)

Indian Rupee (INR) trades flat with a mild positive bias on Tuesday. The Indian Rupee regains its ground against the US Dollar on the back of foreign portfolio inflows, becoming the top-performing currency in the Asian markets for January 2024. According to a review by a finance ministry, the Indian economy remains resilient amid global challenges due to robust domestic demand, investment-led strategies, and macroeconomic stability. (FXStreet)

EUR/GBP continues its downward trend for the second consecutive session, leading up to the upcoming Bank of England (BoE) interest rate decision scheduled for Thursday. As of the Asian session on Tuesday, the pair trades around 0.8520, indicating a decline in value. Investors are closely monitoring these developments in anticipation of the impact the BoE's decision may have on the EUR/GBP pair. (FXStreet)

The USD/CNH pair attracts some dip-buying near the 7.1810-7.1805 area during the Asian session on Tuesday and climbs to a fresh daily peak in the last hour. Spot prices currently trade with a mild positive bias, around the 7.1885-7.1890 region, though remain below a multi-day top touched on Monday. (FXStreet)

GBP/JPY extends its losses for the second session on Tuesday, edging lower to near 187.40 during the Asian session. The GBP/JPY cross faces a challenge of risk-off sentiment due to the escalated situation in the Middle East, which drives the investors toward the safe-haven Japanese Yen (JPY), which in turn, acts as a headwind for the GBP/JPY pair. (FXStreet)

The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.1055 as compared to the previous day's fix of 7.1097 and 7.1763 Reuters estimates. (FXStreet)

West Texas Intermediate (WTI) US Crude Oil prices tick higher during the Asian session on Tuesday and for now, seem to have stalled the previous day's rejection slide from the 100-day Simple Moving Average (SMA) or a nearly two-month peak. (FXStreet)

Gold price (XAU/USD) gains some positive traction for the second straight day on Tuesday and steadily climbs back closer to the $2,040-2,042 supply zone during the first half of the European session. Fears that escalating tensions in the Middle East could trigger a wider war in the region keep a lid on the recent optimism in the markets. Apart from this, a further decline in the US Treasury bond yields turns out to be a key factor lending support to the non-yielding yellow metal. (FXStreet)

Silver price (XAG/USD) climbs above $23.20 in the early European session. The white metal has capitalized on mounting Middle East tensions, which have improved appeal for safe-haven assets. However, forward action will be guided by the interest rate decision from the Federal Reserve (Fed), which will be announced on Wednesday. (FXStreet)

Source: FXStreet, DailyFX

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