Market Update - 02 February 2024

EUR/USD consolidates on recent losses registered in the previous session, hovering around 1.0870 during the Asian session on Friday. The EUR/USD pair could find the immediate resistance zone around the 21-day Exponential Moving Average (EMA) at 1.0882 followed by the psychological level at 1.0900. (FXStreet)

The GBP/USD pair struggles to capitalize on the previous day's solid recovery of around 130 pips from the 1.2625 area, or over a two-week low and oscillates in a narrow band during the Asian session on Friday. Spot prices currently trade near mid-1.2700s, closer to the weekly peak, as traders look to the US monthly jobs report before placing fresh bets. (FXStreet)

The USD/CAD pair holds below the 1.3400 mark during the early European trading hours on Friday. The decline in the US Dollar (USD) and lower US Treasury bond yields weigh on the USD/CAD pair. The pair currently trades near 1.3378, down 0.08% on the day. Later on Friday, traders will closely monitor the US Nonfarm Payrolls (NFP) report for fresh catalysts, which is estimated to see 180,000 jobs added in January. (FXStreet)

NZD/USD continues to gain ground for the second trading session on Friday, improving to near 0.6150 during the Asian hours. The depreciation of the US Dollar (USD) could be attributed to the subdued US Treasury yields. US Treasury yields experienced downward pressure amid concerns regarding regional US banks. Additionally, the improved medium-impact data from New Zealand could have provided some support for the New Zealand (NZD) and, consequently, acted as a tailwind for the NZD/USD pair. (FXStreet)

The EUR/GBP cross gains ground below the mid-0.8500s during the early European session on Friday. Nonetheless, the upside of the cross seems limited. The Bank of England (BoE) held rates steady at its January meeting on Thursday, and BoE Governor Andrew Bailey said more evidence of inflation is needed before lowering rates. At press time, the cross is trading at 0.8531, gaining 0.03% on the day. (FXStreet)

Indian Rupee (INR) trades in positive territory for the third consecutive day on Friday. The announcement of the India Budget 2024 by Finance Minister Nirmala Sitharaman provides some support to the INR. Minister Sitharaman said in her budget statement on Thursday that the government will focus on more comprehensive governance, development, and performance. Four groups that will be the priority for the government are the poor, women, youth, and farmers. (FXStreet)

EUR/JPY experiences difficulty in establishing a clear direction after a choppy previous day, hovering around 159.20 during the Asian session on Friday. The Euro (EUR) gained upward support following the release of mixed Eurozone inflation data on Thursday, consequently providing a foundation for the EUR/JPY cross. (FXStreet)

On Friday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1006 as compared to the previous day's fix of 7.1049 and 7.1655 Reuters estimates. (FXStreet)

West Texas Intermediate (WTI) futures on NYMEX discover interim support near $73.70 as the OPEC+ has maintained its oil output policy and is expected to make a fresh decision on an extension or decline in voluntary cuts in March. (FXStreet)

Gold price (XAU/USD) oscillates in a narrow range through the early part of the European session on Friday and trades just below a one-month high, around the $2,065 region touched the previous day. Diplomatic efforts to achieve a ceasefire in the Palestinian enclave have accelerated, which, along with a modest bounce in the US Treasury bond yields, act as a headwind for the safe-haven precious metal. (FXStreet)

Silver (XAG/USD) struggles to capitalize on the previous day's solid recovery from the $22.50 region, or a one-week trough and oscillates in a narrow trading band through the first half of the European session on Friday. The white metal currently trades around the $23.15 region, nearly unchanged for the day, as traders keenly await the release of the US monthly jobs report (NFP) before placing fresh directional bets. (FXStreet)

Source: FXStreet

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