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04.09.2023 Market Report


EUR/USD is bouncing back toward 1.0800 heading into the European morning. The pair is benefiting from a broadly subdued US Dollar, as investors weigh the Fed-ECB policy divergence amid a US holiday and ahead of ECB President Lagarde’s speech. 


GBP/USD edges higher during the Asian session on Monday amid subdued USD demand. The uncertainty over the Fed’s rate-hike path is seen as a key factor undermining the USD. The lack of any meaningful buying warrants some caution for aggressive bullish traders.


USD/JPY stays defensive around 146.10-15 heading into Monday’s European session after witnessing a sluggish start to the key week comprising Japan’s growth numbers and the US ISM Services PMI. The Yen pair’s latest inaction could be linked to the US Labor Day holiday, as well as mixed clues about the US Federal Reserve (Fed) and the Bank of Japan (BoJ).


AUD/USD recovers from the previous session’s losses, trading higher around 0.6460 during the Asian session on Monday. The pair experienced downward pressure due to mixed employment data from the United States (US) released on Friday. The moderate figures reinforce the possibility of no interest rate change by the US Federal Reserve (Fed) at the September meeting.


The NZD/USD pair consolidates its recent losses below the 0.6000 barrier during the early Asian session on Monday. The pair currently trades near 0.5956, gaining 0.17% on the day. The Kiwi (NZD) is weakened against the US Dollar (USD) following Friday’s upbeat US economic data and the headlines surrounding the US-China trade war tension.


USD/CAD trades higher around 1.3590, extending gains on the second day during the Asian session on Monday. The Canadian Dollar (CAD) is experiencing a downward movement against the US Dollar (USD), which is attributed to the data releases from the United States (US) and Canada.


USD/CHF bulls take a breather ahead of the key Swiss Q2 GDP heading into Monday’s European session. In doing so, the Swiss Franc (CHF) pair prints the first daily loss in three despite staying within a one-month-old bullish trend channel.


U.S. crude oil stocks have fallen to their lowest level this year and likely will shrink further, analysts said, as record demand, producer supply cuts, weaker futures and rising storage costs all point to increasing drawdowns.


Gold price is kicking off a holiday-shortened week on a firm footing early Monday, having witnessed volatile trading on Friday. The United States Dollar (USD) is consolidating the previous week’s solid recovery, as the dust settles over the US Nonfarm Payrolls aftermath.

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