Market Watch: Predictions for Currencies and Commodities Today

Predictions for the currencies, central bank decisions, and commodities shift for informed trading decisions in the next 24 hours.

As global markets navigate through various economic indicators and central bank decisions, traders and investors closely monitor key events that can influence significant currencies and commodities. Here’s a breakdown of the latest developments and forecasts across primary financial instruments for the next 24 hours.

Japanese Yen (JPY)

Japan’s S&P Global Manufacturing PMI plummeted to 47.9, reflecting a prolonged downturn in the sector. Economic growth supports the Bank of Japan’s dovish monetary policy, keeping USD/JPY elevated. The next meeting, scheduled for January 23, 2024, holds a medium bullish bias.

Euro (EUR)

The Eurozone’s Composite PMI estimates for December at 47.0 indicate a continued contraction. Weakness in new orders, work backlogs, and employment contributes to a medium bearish bias. The ECB, keeping key interest rates unchanged, anticipates a temporary pick-up in inflation. The next ECB meeting is on January 25, 2024.

British Pound (GBP)

The UK’s Composite PMI for November rebounded, signaling a return to expansion, but the manufacturing sector remains in contraction. A stronger-than-expected print of 51.7 for December could boost the Pound. The Bank of England’s MPC maintained the Official Bank Rate at 5.25%, with a medium bearish bias ahead of the next meeting on February 1, 2024.

Market Watch: Predictions for Currencies and Commodities Today

Australian Dollar (AUD)

The Aussie faces downward pressures, expected to test the 0.6700 threshold. The RBA paused its cash rate target at 4.35%, expressing concerns about persistently high inflation. The next RBA meeting is on February 6, 2024, with a medium bearish bias.

New Zealand Dollar (NZD)

The Kiwi, along with the Australian Dollar, experienced a downturn. The Monetary Policy Committee kept the OCR unchanged at 5.50%. Ongoing excess demand and inflationary pressures pose concerns. The following 24 hours show an observed weak bullish bias, with the next meeting scheduled for February 28, 2024.

Swiss Franc (CHF)

USD/CHF exhibited strength, reaching 0.8550, but retraced to around 0.8500. The SNB kept the policy rate at 1.75%, forecasting weak GDP growth and subdued demand. A medium bullish bias is maintained, with the next SNB meeting set for March 21, 2024.

Canadian Dollar (CAD)

USD/CAD strengthened, hitting 1.3370, as the Bank of Canada maintained its target rate at 5.0%. Economic slowdown and easing inflation contribute to a medium bullish bias. The next Bank of Canada meeting is on January 24, 2024.

Oil

Crude oil prices surged due to a larger-than-expected drawdown in API stockpiles, disruptions in Libya, and rising Middle East tensions. EIA Crude Oil Inventories could drive WTI oil toward $74 per barrel, maintaining a medium bullish bias for 24 hours.

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