Category: Forex

USD/KRW defends the 200-Day Moving Average (DMA) at 1,316. Economists at Société Générale analyze the pair’s outlook. November/December trough near 1,283 is important support USD/KRW…

EUR/GBP has edged just below the 0.86 level. Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes Sterling’s outlook. GBP/USD does not look stretched…

EUR/GBP has moved down to the 0.86 level. Economists at ING analyze the pair’s outlook.

The EUR/USD fell to a three-week low on Friday after European inflation rebounded higher in December, with the Eurozone Harmonized Index of Consumer Prices (HICP) for the year ended December climbing to 2.9% versus November’s YoY 2.4%. Markets were expecting a print of 3.0%, but higher inflation of any amount reduces the chances of the European Central Bank (ECB) cutting interest rates to reduce borrowing and lending costs.

Silver (XAG/USD) struggles to capitalize on its modest intraday gains to the $23.20 region and retreats to the lower end of its daily range during the early part of the European session. The white metal currently trades around the $23.00 mark and for now, seems to have stalled its modest recovery from a three-week low touched on Thursday.

The Australian Dollar (AUD) halts its losing streak on Thursday. The AUD/USD pair is under downward pressure due to risk-off sentiment and a general bearish session in the commodity complex. The softer Judo Bank Purchasing Managers Index (PMI) data further adds pressure on the Aussie Dollar (AUD).

Following some choppy action in the last trading days of 2023, financial markets seem to have turned relatively calm to begin the new year. S&P Global will release revisions to December PMI data for Germany, the Euro area, the UK and the US later in the day.

Gold (XAU/USD) is experiencing a period of correction, with current trading activity indicating a likely consolidation phase. Despite the recent dip in price to near $2,063.00, gold maintains a positive trajectory, buoyed by market expectations of early interest rate cuts by the Federal Reserve (Fed) in 2024.

The USD/JPY is back into the 141.00 handle as the pair struggles to accelerate momentum in either direction as markets wind up the 2023 trading year.