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20.06.2024 Market Report


EUR/USD cycled on Wednesday with US markets out for a midweek holiday, and the Fiber heads into the back half of the trading week with mid-tier data on the offering, leaving investors to look ahead to Friday’s Purchasing Managers Index (PMI) activity figures for meaningful data releases to drive sentiment in either direction.


The GBP/USD pair trades with a mild negative bias during the Asian session on Thursday and moves further away from the weekly low, around the 1.2740 area touched the previous day. Spot prices, however, hold above the 1.2700 mark as traders await the crucial Bank of England (BoE) monetary policy decision before placing fresh directional bets.


USD/JPY is defending the 158.00 level in the Asian trading hours on Thursday, lacking a clear directional impetus, as investors look for fresh cues on the Fed’s rate-cut timeframe. A risk-averse market environment helps curb the US Dollar downside, lending support to the pair. 


AUD/USD has reversed early gains to trade flat below 0.6700 in Asian trading on Thursday. The pair loses upside traction, as the US Dollar attempts a tepid recovery amid a cautious market mood and PBOC’s status-quo. The focus shifts to mid-tier US data and Fedspeak. 


The NZD/USD pair gains traction near 0.6145 during the early Asian session on Thursday. The pair edges higher on the back of stronger-than-expected New Zealand GDP in the first quarter and the decline of the US Dollar (USD). Investors await the US weekly Initial Jobless Claims, Building Permits, Housing Starts, the Philly Fed Manufacturing Index, and the speech by the Fed’s Barkin for fresh impetus on Thursday.


The USD/CAD pair trades with mild gains around 1.3710, snapping the four-day losing streak during the early Asian trading hours on Thursday. The modest recovery of the US Dollar (USD) might be limited amid reduced bets of the US Federal Reserve (Fed) rate cut this year. 


The USD/CHF pair trades with mild gains near three-month lows around 0.8840 during the early European session on Thursday. The modest rebound of the pair might be limited as traders raised their bets on the US Federal Reserve (Fed) rate cut this year. US markets will be closed on Wednesday due to Juneteenth National Independence Day. Investors await the Swiss National Bank (SNB) Interest Rate Decision later today, with no change in rate expected. 


Oil prices dipped on Wednesday after hitting seven-week highs as summer demand optimism and concerns over escalating conflicts offset an industry report that said U.S. crude inventories unexpectedly rose.


Gold price gained some positive traction on Thursday amid September Fed rate cut bets. Geopolitical risks and political uncertainty in Europe also lend support to the XAU/USD. Rebounding US bond yields and a positive risk tone might cap any further positive move.

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