Research & Education
GBPJPY EYEING YEAR'S HIGH
The GBPJPY pair closed the week forming a bullish candlestick, ending a streak of three consecutive bearish sessions. Traders are expected to closely monitor the currency pair in light of the forthcoming release of significant economic data that could impact currency valuations.
EURUSD Looking For Upside Momentum
The EURUSD currency pair declined in value during yesterday's trading session, hitting a new low and breaking through the dynamic support line established by the 50-period Moving Average. This drop in price may be attributed to the recent news that the US economy expanded by 3.2% annually in the fourth quarter, as well as strong consumer spending, according to a report released by the Bureau of Economic Analysis on Wednesday. Traders are expected to closely monitor the currency pair in light of the forthcoming release of significant economic data that could impact currency valuations.
All Eyes on RBNZ Ahead Of Interest Rate Decision
The NZDUSD pair has exhibited an upward direction since February 20, when the Kiwi initiated a reversal to the upside on the price chart, surpassing the technical resistance level at 0.61584 following a decisive break of the downward channel. The bullish rally prompted the entry of bull positions in the market, which pulled the price higher. However, the rally lost its steam before reaching the first potential price target of 0.62258.
The 50-period Moving Average and the Momentum oscillator both support the upward bias, strengthening the notion of a potential rally.
Traders are expected to closely monitor a currency pair in light of the forthcoming release of significant economic data that could potentially impact currency valuations.
Temporary Halt to Crude Oil Rally
Despite the less-than-anticipated growth in crude oil stockpiles, as reported in the latest release, the commodity closed the week at $76.786 per barrel, unable to mount an upward rally due to concerns over weakening demand in the face of declining economic indicators in the United Kingdom for two consecutive quarters, Japan's economic contraction in the last quarter, persisting geopolitical tensions and delays in the US interest rate cuts. As a result, crude oil prices failed to surge despite the inventory data.
Gold Confined In Descending Channel
Gold is trading near the upper trendline of a descending channel, dominated by a rebounding dollar after recording six consecutive lower lows. However, the precious metal has encountered a confluence of resistance levels, posing a challenge to its upward trajectory and potential breakout. The resistance level at 2035.00, which coincides with the resistance calculated by the weekly Standard Pivot Points, has emerged as a significant barrier to the precious metal's upward momentum. Moreover, the Stochastic oscillator has generated an overbought alert, indicating the possibility of a downside in the near future.
SP500 Back On Bullish Track
Investors eagerly anticipated earnings from the AI leader Nvidia (NVDA) while also reviewing the latest release of Federal Reserve minutes. The FOMC minutes have reaffirmed the Fed's intentions to avoid cutting interest rates too quickly. Despite this news, US stocks experienced a late-day rally, which helped improve market confidence. Subsequently, the market has witnessed a resurgence of bullish momentum, which has propelled the S&P 500 toward its yearly peak.
Traders will be keeping a close eye on the market as significant economic data that has the potential to affect the economy's health is due to be released.
Loonie Paused Prior CPI Release Tomorrow
The Loonie is currently taking a breather before the release of important economic reports that may pull the USDCAD to higher exchange rates.
Traders will closely monitor the currency pair in light of the significant economic data that is set to be released tomorrow, which may have an impact on the currency valuations.
Bearish Bias for GBPUSD
The GBPUSD currency pair experienced a rebound from the 1.2518 level as market participants reacted to a mix of economic data releases from the United Kingdom and the United States, respectively. The total value of goods and services produced in the UK contracted for two consecutive quarters, leading to discussions of a potential economic recession. In contrast, the advance estimates of the US Retail and Food Services Sales for January 2024 were $700.3 billion, down 0.8 percent from the previous month. The sales figure, excluding automobile sales, indicated a decline of 0.6%, significantly lower than the expected 0.2% rise.
The Pound Sterling is technically following a declining trend. However, the rate of deceleration is insufficient to drive it towards further depreciation as it stands.
Traders will closely monitor the currency pair today due to significant economic data releases and their potential impact on currency valuations.
USDJPY Surged Amid Higher Consumer Figures
The USDJPY is rallying amid yesterday's release of the January Consumer Price Index for All Urban Consumers, surpassing economists' expectations of "softer" inflationary figures and increasing global geopolitical tensions. The most awaited CPI report brings disappointment to those anticipating a decline in inflation, which would have enabled the Fed to initiate rate cuts before long. Traders will monitor the currency pair closely this week due to significant economic data releases and their potential impact on currency valuations.
Gold Trapped in Consolidation Pattern
After reaching an all-time high of 2090.49 on December 4 of last year, Gold is consolidating in a symmetrical triangle pattern, looking for direction amid increasing global geopolitical tensions, the strengthening of the US Dollar, and the upcoming release of the consumer inflation figures.