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01.06.2023 Market Report


EUR/USD is trading modestly flat just below 1.0700, extending its sideways movement in Asia this Thursday. The US debt deal wins the House passage. Traders refrain from placing fresh bets on the pair ahead of the EU inflation data and the US jobs data. 


GBP/USD grinds near weekly high as bulls and bears jostle ahead of the key data/events scheduled for publishing on Thursday. The Cable pair makes rounds to 1.2450 during early Thursday morning in Europe amid the latest retreat in the US Dollar, mainly due to the cautious optimism and receding hawkish Fed bias.


The USD/JPY pair has witnessed an intense sell-off and has dropped to near 139.00 in the Asian session. The asset attracted significant offers as the US Dollar Index (DXY) extended its downside below 104.20. The USD Index has dropped to near 104.15 as investors are optimistic that US debt-ceiling proposal would secure sufficient votes.


The AUD/USD pair has attempted a recovery move as the IHS Markit has reported upbeat Caixin Manufacturing PMI (May) data. The economic data has landed at 50.9, higher than the consensus and the prior release of 49.5. A figure above 50.0 bifurcates expansion and contraction phases and Chinese factory activities have landed in expansionary territory.


The NZD/USD pair is struggling to defend the 0.6000 mark in the Asian session. The Kiwi asset is expected to test Wednesday’s low around 0.5985 as the USD Index (DXY) is gathering strength for breaking above the 104.30 mark.


USD/CAD holds lower ground at the weekly bottom as it extends the previous day’s fall amid a slightly upbeat risk profile and firmer Oil price, not to forget the sluggish US Dollar. That said, the Loonie pair prints mild losses around 1.3565 by the press time of early Thursday morning in Europe.


USD/CHF drops as it prints mild losses around 0.9015 amid early Thursday morning in Europe. Swiss Franc (CHF) buyers cheer the broad US Dollar pullback amid mildly upbeat sentiment. Also likely to have favored the pair sellers could be the consolidation ahead of today’s key Swiss Gross Domestic Product (GDP) data for the first quarter (Q1) of 2023, as well as the US Conference Board’s (CB) Consumer Confidence for May.


Oil prices rose in Asian trade on Thursday, rebounding from near one-month lows as investors cheered progress towards averting a U.S. debt default, while signs of life in Chinese manufacturing also brewed some optimism over a demand recovery in the country. 


Gold price is demonstrating topsy-turvy moves in a $1,962-1,967 range in the Asian session. The precious metal has turned sideways as investors are awaiting the release of the United States Employment data to gain serious guidance about June’s interest rate policy of the Federal Reserve (Fed).

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