Market Updates

Oil

Oil prices eased on Thursday following weak U.S. payrolls data and some profit taking but remained underpinned by tight supply as OPEC+ producers stuck to planned moderate output increases.
Brent crude fell 17 cents, or 0.2%, to $89.30 a barrel by 0420 GMT, after rising 31 cents on Wednesday. U.S. West Texas Intermediate crude was down 31 cents, or 0.4%, at $87.95 a barrel, having gained 6 cents the previous day.

Gold

Gold prices were little changed on Thursday as US Treasury yields retreated after a dip in the jobs data. Investors focus now shifts to European Central Bank and Bank of England meetings later today. US private payrolls fell for the first time in a year in January as soaring COVID-19 infections disrupted business operations. The dollar was slightly up, and US Treasury yields inched lower after the employment data.
The gold is fluctuating on dollar move with lack of fresh triggers. Prices have capped upside post US FOMC meeting with rate hike expectations in March. The softer dollar and geopolitical risk have kept the risk premium high in gold prices along with inflation worries, analysts said.

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EURUSD

EURUSD dips back below the 50% midpoint. Sellers take back some intraday control and lean the 50% comes in at 1.13014. That level was also a swing area going back to January 20. The earlier buyers of seem to switch over to the sell side a bit with intraday resistance now against the midpoint level. US dollar falls on weak private jobs data as inflation perks up. The dollar declined to a more than a one-week low on Wednesday after data showed a drop in US private sector employment in January due to the increase in COVID-19 infections. However, the data is unlikely to prevent the Federal Reserve from hiking interest rates at the March 15-16 policy meeting. But the report has eased expectations of a large interest rate increase of half a percentage point.

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EUR/GBP

The EUR/GBP cross trimmed a part of its modest intraday gains and was last seen trading just a few pips above the daily low, around the 0.8330 area during the early European session. The cross gained some positive traction during the early part of the trading on Thursday, though the uptick lacked any follow-through and ran out of steam ahead of mid-0.8300s. The upside remains capped amid the divergence between the Bank of England and the European Central Bank monetary policy outlooks.

 

EUR/GBP

 

AUDUSD

The Australian dollar surged against its American rival to a fresh weekly high of 0.7117, trading nearby as the day comes to an end. The aussie surged for a second consecutive day, despite shedding roughly 50 pips after the Reserve Bank of Australia made its monetary policy decision. As expected, the central bank kept rates unchanged and announced the end of its QE program, although policymakers noted that while inflation has picked up, it is too early to conclude that it is sustainably within the target band, somehow disappointing investors. Market participants were hoping policymakers would bring forward rate hikes’ guidance.

 

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