Market Update - 16 February 2024

GBP/USD remains on the defensive around 1.2590 in Friday’s early European session.  The UK Retail Sales came in stronger than expected, rising 3.4% MoM in January from a 3.3% decline in December. The weaker US Retail Sales in January prompted the possibility that the Fed might cut the interest rates sooner.  Traders will monitor the US January Producer Price Index (PPI), due on Friday. (FXStreet)

GBP/JPY gains ground ahead of a slew of data releases from the United Kingdom. UK Retail Sales (MoM) could improve to 1.5% from the previous 3.2% decrease. BoJ Governor Kazuo Ueda expects the monetary conditions in Japan to have remained accommodative. (FXStreet)

The Japanese Yen stalls a two-day-old recovery trend from the YTD low touched on Tuesday. A positive risk tone and the uncertainty about BoJ’s policy shift undermine the safe-haven JPY. Reviving bets for an early rate cut by the Fed to cap the USD and act as a headwind for USD/JPY. (FXStreet)

EUR/USD loses momentum near 1.0760 amid renewed USD demand.  The pair keeps the bearish outlook unchanged below the key EMA; RSI indicator lies below the 50-midlines.  The first resistant level will emerge at 1.0790; the key support level is seen at 1.0700. (FXStreet)

USD/CAD gains ground as the US Dollar appreciates on risk aversion. US PPI data and the Consumer Sentiment Index are set to be released on Friday. US Retail Sales decreased 0.8% MoM in January against the expected decline of 0.1%. Lower WTI price contributes downward pressure for the Canadian Dollar. (FXStreet)

NZD/USD breaks below the key level of 0.6100 after retreating from two days of gains. The pair could find the resistance zone around the 23.6% Fibonacci retracement level of 0.6124 and the 50-day EMA at 0.6128. 14-day RSI suggests the NZD/USD pair could test the key support area around the major level of 0.6050 and the weekly low at 0.6049. (FXStreet)

WTI recovers to $77.50 on the weaker of the US Dollar. The International Energy Agency (IEA) said the crude market could be in surplus throughout 2024. The escalating Middle East geopolitical tension might lift WTI prices as it disrupts crude supplies.  Oil traders will monitor the US January Producer Price Index (PPI), due on Friday.  (FXStreet)

Gold price ticks higher amid subdued US Dollar price action, albeit lacks follow-through. Reviving bets for an early Fed rate cut and geopolitical risks lend support to the commodity. Rising US bond yields act as a tailwind for the USD and cap the upside for the XAU/USD. (FXStreet)

Source: FXStreet

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