Pre Loader

21.02.2024 Market Report


EUR/USD is holding gains above 1.0800 early Wednesday, having hit two-week highs on Tuesday. The US Dollar remains broadly weak, despite a mixed market mood, as investors weigh Fed rate cut bets and US government shutdown risks ahead of the Fed Minutes. 


GBP/USD is holding the renewed upside above 1.2600 in early Europe on Wednesday. The pair continues to draw support from hawkish comments from BoE Governor Bailey and an extended US Dollar weakness. The focus now shifts to the Fed Minutes, BoE- and Fed-speak.


The USD/JPY is almost flat as Wednesday’s Asian session begins after posting minuscule losses of 0.09% on Tuesday, at the time of writing trades at 149.96. The drop in US Treasury bond yields and a subdued US Dollar (USD) were the two reasons that favored the Japanese Yen (JPY).


The AUD/USD pair peaked on Tuesday at 0.6578, the highest in three weeks early in the American session. The pair retreated afterwards towards the 0.6550 region, where it stands ahead of the Asian opening, posting gains for the fifth consecutive day.


NZD/USD continues to extend its winning streak that began on February 14 on the subdued US Dollar, which could be chalked up to the lower US Treasury yields. The NZD/USD pair rises to near 0.6190 during the Asian trading hours on Wednesday.


The USD/CAD pair gains ground above the 1.3500 mark during the early Asian trading hours on Wednesday. A weaker-than-expected Canadian inflation data weighs on the Canadian Dollar (CAD) and acts as a tailwind for USD/CAD. The attention is shifted to the FOMC Meeting Minutes on Wednesday. The pair currently trades near 1.3526, up 0.03% on the day. 


USD/CHF moves downward for the second consecutive day, trading lower near 0.8800 during the Asian session on Wednesday. The weakening of the USD/CHF pair can be attributed to a softer US Dollar (USD), which is influenced by subdued US Treasury yields. This downturn may reflect market sentiment regarding potential rate cuts by the Federal Reserve (Fed) in upcoming meetings.


Oil prices moved little in Asian trade on Wednesday as markets continued to fret over a weaker outlook for demand, while fears of supply disruptions from a sustained conflict in the Middle East remained in play.


Gold price attracts some buyers for the fifth successive day amid modest USD weakness. Geopolitical risks also benefit the safe-haven XAU/USD and remain supportive of the upward move. 

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.