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10.07.2024 Market Report


The EUR/USD pair trades on a stronger note around 1.0818 on Wednesday during the early European session. The modest uptick of the pair is bolstered by the weaker Greenback The US Consumer Price Index inflation data on Thursday will be the highlights for this week. 


GBP/USD remains tepid for the second consecutive day, trading around 1.2780 during early Wednesday. The decline of the pair can be attributed to the strengthening US Dollar, which has gained momentum following Fed Chairman Jerome Powell’s testimony before the US Congress on Tuesday.


The Japanese Yen (JPY) clings to recovery gains against the US Dollar early Wednesday, in the face of the latest Reuters report on potential economic revisions by the Bank of Japan (BoJ) at its July meeting. Reuters reported on Wednesday, citing unnamed sources, the Bank of Japan will likely trim this year’s economic growth forecast and project inflation will stay around its 2% target in coming years at its meeting this month.


The Australian Dollar (AUD) recovers its daily losses on Wednesday. However, the AUD/USD pair faced challenges following Federal Reserve (Fed) Chairman Jerome Powell’s testimony before the US Congress on Tuesday. Despite acknowledging improving inflation figures, the Fed remains firmly cautious.


NZD/USD loses ground, trading around 0.6100 during Asian trading hours on Wednesday. This drop is driven by an interest rate decision by the Reserve Bank of New Zealand (RBNZ). RBNZ has opted to keep the Official Cash Rate (OCR) unchanged at 5.50% in its July monetary policy meeting, marking the eighth consecutive meeting with no change.


The USD/CAD pair remains capped within a narrow trading range around 1.3635 during the early Asian session on Wednesday. Meanwhile, the USD Index (DXY) consolidates its gains past the 105.00 hurdle as traders await the second semi-annual testimony by Federal Reserve (Fed) Chair Jerome Powell, along with speeches by the Fed’sMichelle Bowman and Austan Goolsbee.


On Tuesday, the USD/CHF found some footing and mildly rose to 0.8980. The pair gained momentum as the Federal Reserve (Fed) Chair Jerome Powell addressed the US Congress and showed himself cautious regarding the bank’s next steps. Beyond this, market participants are eyeing Thursday when the US releases June’s inflation figures.


Oil prices dipped on Wednesday after inflation in top crude importer China came in weaker than expected, while traders weighed the rising possibility of a ceasefire deal in Gaza as negotiations are set to resume later in the day.


Gold price is looking to build on the previous rebound above $2,350 in Wednesday’s Asian session, as the US Dollar consolidates its recovery gains alongside the US Treasury bond yields.

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