Market Update - 19 February 2024

The EUR/USD pair trades on a stronger note near 1.0785 for four straight days during the early European session on Monday. The decline of the US Dollar (USD) provides some support for the major pair. Two European Central Bank (ECB) policymakers said Eurozone inflation is heading back towards the 2% target, but the ECB needs further data to confirm before it can cut rates. Nonetheless, the FOMC Minutes and the Eurozone data, including the PMI and CPI inflation report could offer some hints about the inflationary trajectory. (FXStreet)

USD/JPY edges lower to near 150.00 during the Asian session on Monday after registering a volatile session in the previous session. The Japanese Yen (JPY) cheers the improved Machinery Orders data from the country. However, the USD/JPY pair soared on better-than-expected Producer Price Index (PPI) data from the United States on Friday. However, gains were trimmed after dovish remarks on the Federal Reserve’s (Fed) policy from James Bullard, former president of the St. Louis Fed. (FXStreet)

The GBP/USD trends upwards as the US Dollar (USD) experiences downward pressure, influenced by market sentiment leaning towards the anticipation of a Federal Reserve rate cut in the upcoming March meeting. This sentiment was reinforced when former Fed official James Bullard suggested at the National Association for Business Economics (NABE) conference that the Fed should consider lowering interest rates to prevent hindering economic activity due to higher rates. During Asian trading hours on Monday, the GBP/USD pair trades higher around 1.2620. (FXStreet)

The USD/CAD pair trades on a weaker note below 1.3500 during the early Asian session on Monday. US and Canadian markets are closed on Monday due to the President's Day holiday and Family Day, respectively. Investors will take more cues from the Canadian Consumer Price Index (CPI) for January, which is estimated to ease to 3.2% YoY from 3.4% in December. USD/CAD currently trades around 1.3480, gaining 0.02% on the day. (FXStreet)

Indian Rupee (INR) gathers strength on Monday amid the decline of the US Dollar (USD). The positive economic outlook of India provides some support to the INR. The International Monetary Fund (IMF) said in its latest World Economic Outlook update that economic growth in India was projected to remain strong at 6.5% in both 2024 and 2025. (FXStreet)

EUR/GBP is closing in on multi-month support and traders should be aware of the multiple attempts to break lower. Traders should look for a reaction higher before considering any trade. A confirmed break of support will leave 0.8500 as the next level for traders to watch. (DailyFX)

The West Texas Intermediate (WTI) oil price retraces its recent gains, possibly due to a technical correction, amid subdued trading activity due to the Presidents’ Day holiday in the United States. WTI price dips lower to around $77.80 per barrel during Asian trading hours on Monday. Additionally, market participants are expected to closely monitor demand conditions in China after returning from the week-long holiday. (FXStreet)

Gold price continues to move on an upward trajectory, trading higher around $2,020 per troy ounce during the early European session on Monday. The precious metal receives upward support from cautious investor sentiment amid speculation about the Federal Reserve's interest rate policy. (FXStreet)

Source: FXStreet, DailyFX

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