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05.07.2024 Market Report


EUR/USD continues its winning streak for the seventh successive day, trading around 1.0820 during the Asian hours on Friday. A technical analysis of the daily chart indicates a bullish bias, with the pair oscillating within an ascending channel.


The Pound Sterling (GBP) continues its winning streak on Friday. As UK election results are being declared, exit polls predict a landslide victory for Keir Starmer’s Labour Party, expected to win 410 seats in the 650-seat House of Commons, while the Conservatives are projected to secure 131 seats. The outcome of the election should be clear by early Friday.


USD/JPY is falling hard toward 160.50 in Asian trading on Friday, having reversed from near 161.40. The pair drops on renewed US Dollar weakness and Japanese verbal intervention, which rescues the Yen. The focus shifts to US jobs report. 


AUD/USD consolidates near a multi-month peak at 0.6740 in the Asian session on Friday as traders keenly await the the US NFP report. The Fed-RBA policy divergence continues to underpin the pair. 


The NZD/USD pair weakens to nearly 0.6115, snapping the two-day winning streak during the early Asian session on Friday. The release of US Nonfarm Payrolls (NFP) for June will take center stage on Friday, along with the speech by the Federal Reserve’s (Fed) John Williams. 


The USD/CAD pair trades on a negative note around 1.3605 during the early Asian session on Friday. The downtick of the pair is backed by the weaker US Dollar (USD) boardly. The release of US and Canadian employment reports will be the highlights on Friday. 


In early Friday’s session, the USD/CHF pair slightly declined, with markets showing a less enthusiastic attitude towards the USD after weak data outcomes. The key movers are the disappointing US ISM Services PMI for June, which indicated a contraction in the US service sector reported on Wednesday. In the European session, the Swiss inflation figures came in soft.


Crude oil and other commodity prices have rebounded early in spring, which will now heap upward pressure on import prices, spilling over energy and materials-related industrial products as well,” said Takeshi Minami, chief economist at Norinchukin Research Institute.


Gold price extends its consolidative price move during the Asian session on Friday and remains well within the striking distance of the highest level since June 21 touched earlier this week. The recent softer US macro data reaffirmed market bets that the Federal Reserve will begin cutting rates in September.

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