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01.07.2024 Market Report


EUR/USD extends gains above 1.0750 in European trading on Monday. The Euro gains as France’s far-right National Rally (RN) party sweeps the first round of elections. Meanwhile, the US Dollar stays offered on renewed Fed rate cut bets. Focus shifts to German inflation and US PMIs. 


GBP/USD rises further toward 1.2700 in the European session on Monday. The US Dollar remains weighed down by dovish Fed expectations and the EUR/USD upsurge, keeping the pair underpinned ahead of the US ISM PMI data. 


The Japanese Yen (JPY) remains tepid on Monday near its lowest level of 161.28 since 1986. However, its downside seems limited as an upbeat Japan’s business confidence data lifted market sentiment. Additionally, the expected speculations about an imminent intervention by Japanese authorities support the JPY.


The Australian Dollar (AUD) struggles as investors’ sentiment soured following data indicating that Australia’s June manufacturing PMI contracted at its fastest rate since May 2020. Market focus now turns to the Reserve Bank of Australia’s (RBA) upcoming policy meeting minutes on Tuesday for insights into the monetary policy direction.


The NZD/USD pair attracts some dip-buying during the Asian session on Monday and looks to build on Friday’s modest bounce from the vicinity of mid-0.6000s, or its lowest level since mid-May touched on Friday. Spot prices currently trade around the 0.6100 mark amid a modest US Dollar (USD) weakness, though lack bullish conviction amid the uncertainty over the Federal Reserve’s (Fed) rate-cut path. 


The USD/CAD pair trades on a softer note around 1.3675 during the Asian session on Monday. The signs of easing inflation in the United States boost the Fed rate cut hopes, which undermine the US Dollar (USD). Investors will take more cues from the US ISM Manufacturing PMI for June, which is due on Monday. 


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


Oil prices climbed on Monday, supported by forecasts of a supply deficit stemming from peak summer fuel consumption and OPEC+ cuts in the third quarter, although global economic headwinds and rising non-OPEC+ output capped gains.


Gold price is treading water near $2,325 in Asian trading hours on Monday, holding Friday’s range play. Gold price fails to capitalize on the US Personal Consumption Expenditure inflation data-led US Dollar weakness, as buyers turn to the sidelines heading into a Big week.

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