Market Update - 26 February 2024

The EUR/USD pair trades on a softer note amid a modest rebound of the US dollar (USD) during the early Asian session on Monday. The US January PCE inflation data will be in the spotlight this week. This data could trigger volatility in the market. At press time, EUR/USD is trading at 1.0819, losing 0.03% on the day. (FXStreet)

GBP/USD breaks its four-day winning streak and trades slightly lower around 1.2660 during the Asian session on Monday. The US Dollar (USD) maintains its strength on hawkish comments from Federal Reserve’s (Fed) officials, which in turn, undermines the GBP/USD pair. Additionally, the lower February consumer confidence data from the United Kingdom (UK) might have put downward pressure on the Pound Sterling (GBP). (FXStreet)

The USD/CHF pair trades sideways above the 0.8800 mark during the early European session. The US and Swiss Gross Domestic Product (GDP) for the fourth quarter (Q4) could provide a clear direction to the pair. The annualized US GDP growth number is estimated to remain steady at 3.3%. USD/CHF currently trades around 0.8811, unchanged for the day. (FXStreet)

The USD/CAD pair attracts some buyers above the 1.3500 mark during the Asian session on Monday. The recovery of the pair is bolstered by renewed US Dollar (USD) demand. Investors await the Canadian Current Account and the US Gross Domestic Product annualized for the fourth quarter (Q4) for fresh impetus. At press time, USD/CAD is trading at 1.3512, adding 0.07% on the day. (FXStreet)

The NZD/USD pair comes under heavy selling pressure on the first day of a new week and retreats further from a five-week peak, around the 0.6215-0.6220 region touched last Thursday. Spot prices drop to the 0.6165-0.6160 area during the Asian session and for now, seem to have snapped an eight-day winning streak amid a modest US Dollar (USD) strength. (FXStreet)

On Monday, the People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead at 7.1080 as compared to Friday's fix of 7.1064 and 7.1998 Reuters estimates. (FXStreet)

The AUD/JPY cross comes under some selling pressure during the Asian session on Monday and snaps an eight-day winning streak to the 99.00 mark, or its highest level since December 2014. Spot prices currently trade around the 98.60 region, with bears now awaiting a sustained break and acceptance below the 100-hour Simple Moving Average (SMA) before positioning for any further losses. (FXStreet)

The USD/INR bearish short-term outlook remains unchanged as the pair trades below the crucial 100-day Exponential Moving Average (EMA) on the daily chart. Furthermore, the 14-day Relative Strength Index (RSI) is below the 50.0 midline, suggesting the path of least resistance level is to the downside. (FXStreet)

EUR/GBP halts its three-day losing streak, edging higher to near 0.8540 during the Asian session on Monday. The Euro (EUR) receives upward support on hawkish comments from European Central Bank’s (ECB) members. Additionally, ECB Monetary Policy Meeting Accounts for January indicated that policymakers maintain caution regarding easing monetary policy. They expressed a consensus that it was premature to discuss rate cuts at the meeting. Traders will likely watch the ECB President Christine Lagarde’s speech later on Monday. (FXStreet)

The EUR/JPY cross holds below the 163.00 mark during the early European session on Monday. The concern about a technical recession in Japan and the risk-on mood weigh on the Japanese Yen (JPY). However, the warning from Japanese authorities to intervene in the FX market might cap the downside of the JPY. The cross currently trades near 162.85, down 0.01% on the day. (FXStreet)

The USD/MXN pair experiences a decline after two consecutive days of gains, trading around 17.10 during the early European session on Monday. This downward movement is attributed to subdued US Treasury yields, which are putting pressure on the US Dollar (USD), consequently, undermining the USD/MXN pair. (FXStreet)

West Texas Intermediate (WTI) oil prices extend their decline for the second consecutive session, hovering near $76.00 per barrel during the Asian trading session on Monday. The downward pressure on Crude oil prices can be attributed to uncertainties surrounding demand, likely influenced by heightened global risk sentiment. This sentiment could prompt central banks to adopt a patient stance regarding the trajectory of interest rates. (FXStreet)

Gold price (XAU/USD) reverses an intraday dip and climbs to the $2,035 region during the early European session, though remains below a two-week high touched on Friday. The US Dollar (USD) continues with its struggle to attract any buyers amid retreating US Treasury bond yields, which, in turn, is seen as a key factor acting as a tailwind for the commodity. Apart from this, persistent worries about geopolitical risks stemming from conflicts in the Middle East and the prolonged Russia-Ukraine war lend additional support to the safe-haven precious metal. (FXStreet)

Silver (XAG/USD) meets with a fresh supply on the first day of a new week and erodes a major part of Friday's recovery gains from over a one-week low. The white metal maintains its offered tone around the $22.85-$22.80 zone through the first half of the European session and seems vulnerable to prolonging its recent downfall witnessed over the past week or so. (FXStreet)

Source: FXStreet

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