Market Update - 27 February 2024

EUR/USD continues its winning streak that began on February 14, with the subdued US Dollar (USD), potentially influenced by the lower US Treasury yields. Consequently, during Tuesday's Asian session, the EUR/USD pair hovers around 1.0850. (FXStreet)

The GBP/USD pair extends the rally below the 1.2700 psychological barrier during the early Asian session on Tuesday. The FOMC minutes indicated that the Fed had reaffirmed a data-driven approach, leading to a more dovish outlook, which weighs on the US Dollar (USD) and creates a tailwind for the pair. At press time, GBP/USD is trading at 1.2685, gaining 0.02% on the day. (FXStreet)

The USD/CHF pair consolidates in a narrow trading range during the early European session on Tuesday. Investors seem to prefer to wait on the sidelines ahead of key events from the US and Swiss dockets. Meanwhile, the decline of the US Dollar (USD) weighs on the pair. At press time, USD/CHF is trading at 0.8798, adding 0.02% on the day. (FXStreet) 

The USD/CAD pair oscillates in a narrow trading band of 1.3495–1.3515 during the early Asian session on Tuesday. Investors await the fresh catalysts from the incoming economic data this week. The US and Canadian Gross Domestic Product (GDP) will be released on Wednesday and Thursday, respectively. The pair currently trades around 1.3507, adding 0.01% on the day. (FXStreet) 

The NZD/USD pair remains under some selling pressure for the second straight day on Tuesday and drops to a one-week low, around mid-0.6100s during the Asian session. Spot prices, however, recover a few pips from the daily trough in the wake of a modest US Dollar (USD) downtick and currently trade around the 0.6165 region, down just over 0.10% for the day. (FXStreet) 

The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.1057 as compared to previous day's fix of 7.1080 and 7.1945 Reuters estimates. (FXStreet) 

GBP/JPY halts its winning streak that began on February 20, edging lower to near 190.80 during the Asian session on Tuesday. However, speculation arose regarding a potential delay in rate cuts following a testimony to the UK Treasury Committee by Bank of England (BoE) Governor Andrew Bailey and other policymakers last week. Bailey mentioned that while he wouldn't forecast the exact number of cuts, the bank was moving towards a path of lowering rates. This speculation has lifted the Pound Sterling (GBP) against the Japanese Yen (JPY). (FXStreet)

USD/MXN extends its losses for the second successive day, trading lower around 17.08 during the early European hours on Tuesday. This decline can be attributed to the weakened US Dollar (USD), primarily influenced by subdued US Treasury yields. Moreover, improved risk appetite in the market exerts additional downward pressure on the Greenback, acting as a headwind for the USD/MXN pair. (FXStreet)

The EUR/JPY cross trades in negative territory after being rejected from the multi-month highs of 163.50 during the early European trading hours on Tuesday. The hotter-than-expected Japanese CPI data has prompted investors to be more cautious about the probability of the BOJ exiting negative interest rate policy at the March meeting, which provides some support to the Japanese Yen (JPY). At press time, the cross is trading at 163.28, losing 0.15% on the day. (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)

AUD/JPY also appears to have discovered a period of resistance after the Thursday and Friday daily candles presented higher upper wicks around a prior level of resistance. This typically suggests a rejection of higher prices and a waning of bullish momentum. The uptrend is still very much intact with price action rising above the 50 and 200 day simple moving average. Resistance at 98.70 remains in play for the pair. (DailyFX)

The West Texas Intermediate (WTI) oil price has dipped slightly to near $77.30 per barrel during the Asian session on Tuesday. However, Crude oil prices have found support from ongoing geopolitical tensions in the Red Sea region. Specifically, the targeting of civilian shipping vessels by Iran-led Houthis has raised concerns about potential disruptions to supply lines between Europe and Asia. As a result, bids for Crude oil barrels remain elevated as market participants monitor the situation closely. (FXStreet)

Gold price (XAU/USD) attracts some dip-buyers following the previous day's modest pullback and holds steady above the $2,030 level during the Asian session on Tuesday. The US Dollar (USD) remains depressed in the wake of a fresh leg down in the US Treasury bond yields and turns out to be a key factor acting as a tailwind for the commodity. Moreover, the cautious market mood is seen benefitting the precious metal's relative safe-haven status, though hawkish Federal Reserve (Fed) expectations keep a lid on any further gains. (FXStreet) 

Silver price (XAG/USD) recovers sharply to near $22.70 as the US Dollar comes under pressure in the London session on Tuesday. The white metal rises as the US Dollar faces a sell-off due to easing geopolitical tensions. (FXStreet)

Source: FXStreet，DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.