FX

Here is what you need to know on Friday, February 3: Nonfarm Payrolls (NFP) data day is here and the end of a full week. Wednesday and Thursday saw the Federal Reserve, European Central Bank and Bank of England report, and now the NFP becomes the cherry on top of an eventful week. It is a lot to pack

USD/CHF is facing barricades in stretching its recovery move above the 0.9140-0.9160 supply zone. A hawkish commentary from SNB Chairman failed to strengthen the Swiss Franc bulls. The RSI (14) is struggling to scale into the bullish range of 60.00-80.00. The USD/CHF pair has rebounded after a corrective move to near 0.9115 in the early

EUR/JPY remains within the consolidation theme around 141.00. The 200-day SMA emerges as the next level of contention so far. EUR/JPY keeps the side-lined trading unchanged around the 141.00 region so far on Thursday. Extra consolidation should not be ruled out in the very near term. In case the downside accelerates, the next support of

GBP/USD Price Analysis: Bulls eye a run to test the 1.24s resistance GBP/USD rallied overnight on US Dollar weakness following the Federal Reserve event. The pair burst through 1.2350 resistance. GBP/USD now depends on the Bank of England and US jobs data on Friday. The following illustrates the technical structure of the price on the

The Dollar peaked in late September, shortly after long-term US real rates peaked. In the view of economists at Société Générale, the next leg of Dollar weakness might be slower and not in a straight line. A pause, perhaps? But not the end of the Dollar bear market  “The reluctance of the US market to

US Dollar steadies after snapping three-day winning streak. Market’s anxiety probes DXY bears as US stock futures fail to trace Wall Street, yields stabilize. Downbeat US data, yields weighed on the USD the previous day. Fed Chairman Jerome Powell has a tough task of defending US Dollar bulls amid dovish hike expectations. US Dollar Index

EUR/USD has extended its up move after breaking above the December high of 1.0730. Economists at Société Générale note that the pair could target the 1.1040/1.1080 area. Break of 1.0940 brings 1.1040/1.1080 in play “Daily MACD has turned flattish and is at a much lower level as compared to the highs achieved in November denoting

USD/JPY struggles to extend week-start rebound amid strong statistics from Tokyo. Japan’s Unemployment Rate remains unchanged but Industrial Production, Retail Trade cross market forecasts in December. Mixed sentiment, hawkish concerns surrounding BoJ keeps Yen pair sellers hopeful. US CB Consumer Confidence, risk catalysts will be crucial ahead of the FOMC. USD/JPY grinds higher around 130.50

According to Markets Strategist at UOB Group Quek Ser Leang, USD/MYR faces a solid support around 4.20 for the time being. Key Quotes “USD/MYR dropped to a fresh 9-1/2month low of 4.2200 last week before closing lower by 0.98% (Friday’s close of 4.2410).” “Further USD/MYR weakness is not ruled out but in view of the

China’s cabinet said on Saturday it would promote a consumption recovery as the major driver of the economy and boost imports, state broadcaster CCTV reported per Reuters. The news highlights cooling of global demand and recession concerns behind the readiness from China policymakers to act. Also read: PBoC to roll over lending tools to spur growth

USD/CHF is downward biased but subject to a mean reversion move towards 0.9300. Solid resistance lies at 0.9235/40, with the confluence of technical indicators rejecting the USD/CHF rally. USD/CHF Price Analysis: Bulls are hopeful if the pair remains above 0.9158. After slumping on Wednesday, the USD/CHF stages a comeback recovering the 0.9200 psychological level, eyeing

The US core PCE, the Fed’s preferred gauge for inflation, edges down, sparking speculations for a Fed pivot. Consumer Sentiment improved, while inflation expectations ticked lower. EUR/USD Price Analysis: Upward biased, but short-term neutral, ahead of Fed and ECB’s decisions. The EUR/USD got rejected from the 1.0900 psychological barrier for two consecutive days and on

Analysts at MUFG Bank see the USD/ZAR moving to the downside over the next days. They point out the South African Rand has failed to strengthen alongside other Emerging Market currencies on the back of building optimism over a dovish Federal Reserve policy pivot and China’s economy reopening more fully this year. Key quotes: “The

GBP/USD is set to finish Friday with losses of at least 0.20%. United States inflation continues to wane but remains twice elevated of Fed’s target. GBP/USD Price Analysis: To remain sideways ahead of the Fed and BoE monetary policy decisions. GBP/USD snaps two days of gains and tumbled below Thursday’s close of 1.2406, slumping toward

The daily upside in EUR/USD falters around 1.0900. The greenback looks side-lined ahead of key data releases. US PCE, Core PCE, Consumer Sentiment next of note in the docket. After a brief test of the 1.0900 region earlier in the session, EUR/USD now comes under some mild downside pressure and revisits the 1.0880 zone at

After initially suggesting a fall in the UK Inflation, British Treasury Secretary Jeremy Hunt will say on Friday that he will tackle the country’s weak productivity growth, including by using post-Brexit finance reforms to drive more investment into the economy, per the UK Treasury as reported by Reuters. The update also states that UK Chancellor

The South African central bankers are getting together for their first monetary policy meeting in 2023 today. A hawkish SARB is unlikely to lift the Rand, according to economists at Commerzbank. The Rand is under pressure due to domestic risks “Usually the Rand is able to benefit from a hawkish SARB, above all in a

AUD/USD seesaws around five-month high as bulls take a breather after four-day uptrend. Higher highs on RSI (14) contrast with the lower high on prices to probe the bullish trend. Overbought RSI conditions, seven-month-old horizontal hurdle also challenge buyers. 61.8% Fibonacci retracement, previous weekly high restrict immediate downside. AUD/USD pauses the four-day uptrend around the