EUR/USD: Set to consolidate with mild rebound risks – OCBC

FXStreet Insights Team FXStreet

Euro (EUR) held on to small gains overnight amid USD’s pullback. EUR/USD was last seen at 1.03 levels.

Mild rebound not ruled out in the near term

"On ECB-speaks, Holzmann said it is unclear whether ECB will lower rates again at its upcoming MPC on 30 Jan, as he pointed to “hiccups” in euro area inflation. He highlighted that core inflation is still closer to 3% than to 2% and policymakers have a lot of challenges with regard to energy."

"Daily momentum turned flat while RSI rose from near oversold conditions. Mild rebound not ruled out in the near term. Resistance at 1.0350 (21 DMA), 1.0405 (50% fibo). Support at 1.01, 0.9950 levels (76.4% fibo retracement of 2022 low to 2023 high)."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.