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12.06.2024 Market Report


EUR/USD is trading sideways below 1.0750 in Wednesday’s Asian session. Traders refrain from placing fresh bets on the pair ahead of the top-tier US CPI data and the Fed policy announcements, which could have a big impact on the US Dollar’s performance. 


GBP/USD keeps its range near 1.2750 early Wednesday, paying little heed to the mixed UK GDP and Industrial Output data. Markets turn cautious ahead of the key US inflation data and the Fed policy announcements, leaving the pair on the edge. 


The Japanese Yen (JPY) continues its losing streak for the fourth consecutive session on Wednesday. The USD/JPY pair strengthens as investors favor the US Dollar (USD) ahead of the Federal Reserve’s (Fed) decision and the release of US inflation figures for May, scheduled for later in the North American trading hours.


The Australian Dollar (AUD) edges higher on Wednesday, possibly supported by the hawkish sentiment surrounding the Reserve Bank of Australia (RBA) to maintain higher rates this year. Last week, RBA Governor Michele Bullock indicated that the central bank is prepared to increase interest rates if the Consumer Price Index (CPI) does not return to the target range of 1%-3%, according to NCA NewsWire.


The NZD/USD pair snaps the two-day winning streak around 0.6140 on Wednesday during the early Asian session. Markets turn cautious ahead of the key US events, which provide some support for the Greenback. The US Consumer Price Index (CPI) data and the FOMC monetary policy meeting will take center stage on Wednesday. 


The Canadian Dollar (CAD) is trading mostly flat on Tuesday as investors stubbornly dig in their heels ahead of Wednesday’s key data prints from the US. US Consumer Price Index (CPI) inflation is slated for the midweek market session, followed by a fresh rate call from the Federal Reserve (Fed) that is broadly expected to hold rates in the 500-525 basis point range.


USD/CHF remains calm due to thin trading as investors adopt a cautious stance ahead of the Federal Reserve’s (Fed) interest rate decision scheduled later today. The pair hovers around 0.8950 during the early European hours on Tuesday.


Oil prices rose in Asian trade on Wednesday, extending gains after industry data showed U.S. inventories shrank more than expected in the past week.


Gold price is consolidating the two-day upswing while defending the $2,300 level early Wednesday. Gold traders prefer to move on the sidelines amid a typical market caution ahead of the all-important US Federal Reserve interest rate decision and the US inflation data release. 

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