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24.08.2023 Market Report


EUR/USD extends gains for the second consecutive day, trading around 1.0870. The pair has shown resilience despite the downbeat PMI data from the Eurozone and Germany reported on Wednesday, prompting a cautious market sentiment as investors look for additional cues regarding the inflation outlook.


GBP/USD extends its losses and trades lower around 1.2710. The pair faces downward pressure due to downbeat preliminary PMI data released from the United Kingdom (UK) on Wednesday, which came in below expectations.


The USD/JPY pair remains on the defensive during the early Asian trading hours on Thursday. The major pair currently trades around 144.80, down 0.03% for the day. The US Dollar (USD) edges lower as US Treasury yields retreated from multi-year highs and declines below 4.20%.


The AUD/USD pair oscillates in a narrow trading range around 0.6480 heading into the early European session on Thursday. Market participants seem to prefer to wait on the sidelines ahead of the Federal Reserve (Fed) Chairman Jerome Powell’s Speech on Friday.


The NZD/USD pair edges lower during the Asian session on Thursday and erodes a part of the previous day’s strong move up to a one-week high. The pair currently trades around the 0.5970 region, down nearly 0.15% for the day, and is weighed down by a modest US Dollar (USD) uptick.

In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, stalls the overnight sharp pullback from a more than two-month high, though lacks bullish conviction. The flash US PMI prints released on Wednesday showed that business activity in the world’s largest economy approached the stagnation point in August and raised questions if the Fed can afford to increase interest rates further. This, in turn, might keep a lid on the USD and lend some support to the NZD/USD pair.


USD/CAD bears struggle to keep the reins after returning to the table the previous day, following the Loonie pair’s U-turn from a three-month high. That said, the quote remains indecisive around 1.3520 amid early Thursday morning in Europe.


The USD/CHF pair loses traction and edges lower to 0.8775 during the early Asian session on Thursday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, drops to 103.35 after retreating from a two-month high of 103.98. Markets turn cautious ahead of the release of US economic data and the Jackson Hole Symposium on Thursday.


Oil prices eased in early trade on Thursday amid disappointing economic data from key economies and as investors await a speech by U.S. Federal Reserve Chair Jerome Powell on Friday for cues on interest rates.


Gold is extending the recovery from five-month lows into the fourth day in a row this Thursday, flirting with two-week highs near $1,920. The United States Dollar (USD) is licking its wounds alongside the US Treasury bond yields, providing a fresh lift to the XAU/USD price.

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