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17.06.2024 Market Report


EUR/USD is trading close to 1.0700, struggling to build on the previous bounce early Monday. European political uncertainty continues to undermine the Euro and cap the pair’s upside. The cautious mood acts as a tailwind for the USD and favors EUR/USD bearish traders. 


GBP/USD is seen consolidating its recent losses to over a one-month low touched on Friday. The Fed’s hawkish outlook continues to underpin the USD and exerts pressure on the major. The divergent Fed-BoE policy expectations could lend some support and limit deeper losses.


The USD/JPY pair extends the rally near 157.50 during the early Asian session on Monday. The hawkish stance from the US Federal Reserve (Fed) provides some support to the pair. Meanwhile, the Japanese Yen (JPY) loses ground as the Bank of Japan (BoJ) decided to keep its interest rate at 0% at the conclusion of its June policy meeting on Friday. 


The Australian Dollar (AUD) extends downside for the third consecutive day on Monday on the back of the stronger US Dollar (USD) broadly. The Greenback remains well-supported by the expectation that US interest rates will stay higher for longer, with the median projection from Federal Reserve (Fed) officials calling for one interest rate cut this year.


The NZD/USD pair opens with a modest bearish gap on the first day of a new week, albeit managing to hold its neck above the 0.6100 mark through the Asian session. Spot prices remain depressed near the 0.6130-0.6125 region and move little following the release of mixed Chinese macroeconomic data. 


The USD/CAD pair attracts some dip-buying on the first day of a new week, albeit lacks follow-through and remains confined in a familiar range held over the past week or so. Spot prices currently trade just below mid-1.3700s, up less than 0.10% for the day amid a combination of diverging forces. 


The USD/CHF pair snaps the two-day losing streak near 0.8940 in Monday’s early European session. The recovery of the pair is bolstered by the stronger Greenback as the hawkish Fed projection suggested only one rate cut is likely in 2024.


Oil futures prices settled slightly lower on Friday after a survey showed deteriorating U.S. consumer sentiment, but prices rose 4% for the week as investors weighed forecasts for solid demand for crude oil and fuel in 2024.


Gold price is reversing a part of Friday’s upswing, having faced rejection once again above the $2,330 level early Monday. Gold price fails to benefit from a pause in the US Dollar upsurge, as the US Treasury bond yields recover after last week’s downward spiral.  

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