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28.06.2024 Market Report


EUR/USD is back in the red below 1.0700 in the early European morning on Friday. The pair reverses the previous rebound amid resurgent US Dollar demand even as risk sentiment remains in a sweeter spot. Markets turn anxious ahead of US PCE inflation and Sunday’s French elections.


GBP/USD attracts fresh sellers on Friday, though the downside remains cushioned. Traders now seem reluctant to place aggressive directional bets ahead of the US PCE. The technical setup suggests that the path of least resistance remains to the downside.


USD/JPY trades around 161.00, the highest level since 1986, during the Asian session on Friday. The Consumer Price Index (CPI) inflation in Tokyo rose to 2.3% year-over-year in June, up from the previous period’s 2.2%. Core Tokyo CPI inflation, which excludes volatile food prices, also increased during the same period, reaching 2.1% YoY compared to the previous 1.9%, surpassing the median market forecast of 2.0% YoY.


The Australian Dollar (AUD) depreciates against the US Dollar (USD) on Friday, which could be attributed to the dovish comments from the Reserve Bank of Australia’s (RBA) Deputy Governor Andrew Hauser. Hauser said it would be a “bad mistake” to formulate policy in response to a single inflation report. He emphasized that there is still a suite of economic data to come that will require detailed analysis, per Bloomberg.


The NZD/USD pair comes under some renewed selling pressure following the previous day’s brief pause and dives to its lowest level since mid-May during the Asian session on Friday. Spot prices currently trade just above mid-0.6000s, down 0.35% for the day, and now seem to have confirmed a bearish breakdown through the 50-day Simple Moving Average (SMA).


The USD/CAD pair catches fresh bids following the previous day’s good two-way price moves and spikes to a one-and-half-week high during the Asian session on Friday. Spot prices, however, retreat a few pips in the last hour and currently trade around the 1.3715 region, up just over 0.10% for the day.


USD/CHF trades around 0.8980 during the European hours on Friday, grappling to hold ground near its two-week high of 0.8983, recorded on Wednesday. Investors hold for now.


Oil prices rose in Asian trade on Friday and were poised for a third straight weekly jump, buoyed by growing expectations that the U.S. central bank will soon start to cut interest rates.


Gold price has snapped its rebound from two-week lows early Friday, losing ground after running into offers near the $2,330 resistance again. The next direction for Gold price now remains in the hands of the US Personal Consumption Expenditure inflation data.

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