Market Update - 15 February 2024

EUR/USD continues to gain ground due to risk-on market sentiment. The Euro avoided to react on remarks from the ECB President Christine Lagarde. ECB's forward-looking wage tracker maintains its indication of robust wage pressures. FedWatch Tool suggests around 90% and 59% probability of rate adjustment in March and May.(FXStreet)

USD/CAD drifts lower for the second straight day amid a modest USD downtick. Sliding Oil prices undermine the Loonie and should help limit any further losses. The technical setup warrants caution before positioning for a meaningful decline. (FXStreet)

GBP/JPY extends this week’s corrective decline from the 190.00 mark or a multi-year top. A technical recession in the UK revives bets for an early BoE rate cut and weighs on the GBP. Verbal intervention from Japanese authorities benefits the JPY and contributes to the downfall. (FXStreet)

The Japanese Yen attracts some follow-through buying amid intervention fears. Bulls seem unaffected by data showing that Japan’s economy contracted in Q4. Delayed Fed rate cut bets lend support to the USD and limit losses for USD/JPY. (FXStreet)

USD/CHF loses ground as US Dollar declines on US yields. The risk appetite is improved on mild remarks from the Fed officials. The Swiss Franc faced pressure as Swiss inflation slowed in January. (FXStreet)

US Dollar Index faces challenges due to subdued US Treasury yields. The risk appetite is improved possibly on remarks from Fed officials. FedWatch Tool suggests a 90% chance of no rate adjustment by the Fed in March. (FXStreet)

GBP/USD recovers some lost ground around 1.2568 on the downbeat UK CPI data.  Fed officials are anticipated to maintain a cautious approach as they further evaluate the trajectory of inflation in the coming months. The UK Consumer Price Index (CPI) increased by 4% year-on-year in January, worse than the market expectation of 4.2%. Traders will closely monitor the UK Gross Domestic Product (GDP) for Q4 and US Retail Sales, due on Thursday. (FXStreet)

AUD/JPY faces some selling pressure near 97.43 following the downbeat Australian employment data.  The Australian Unemployment Rate rose to 4.1%, the highest since January 2022.  Japan's economy entered a technical recession after shrinking in the fourth quarter (Q4) of 2023. (FXStreet)

WTI remains under some selling pressure for the second straight day on Thursday. A spike in US inventories overshadows geopolitical risks and weighs on Oil prices. The OPEC sees a rise in global demand in 2024, 2025, albeit fails to lend support. (FXStreet)

Gold price attracts some buyers amid sliding US bond yields and subdued USD price action. Geopolitical tensions in the Middle East further lend support to the safe-haven XAU/USD. Delayed Fed rate cut bets could underpin the USD and cap gains for the non-yielding metal. (FXStreet)

Silver price seems steady above $22 while US Dollar corrects. Fed Goolsbee said one-time persistent inflation is insufficient to temper long-term downtrend. The US Retail Sales data will guide the Silver price. (FXStreet)

Source: FXStreet

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