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28.02.2024 Market Report


EUR/USD is grinding lower toward 1.0800 in early European morning on Wednesday. The extended recovery in the US Dollar amid a deterioration in risk sentiment is weighing on the pair, as the focus shifts to a data-packed day ahead. 


GBP/USD is testing lows near 1.2650 in early Europe on Wednesday. The US Dollar is building its recovery gains amid a cautious mood, ignoring negative US Treasury bond yields. Traders refrain from risk-sensitive assets such as the Pound Sterling ahead of key US data, BoE and Fed speak. 


USD/JPY fell before finding a floor near 150.20, with the US Dollar (USD) paring away near-term losses after US Durable Goods Orders declined more than expected in January. Markets will be pivoting to focus on US Gross Domestic Product (GDP) growth and Personal Consumption Expenditure Price Index (PCE) inflation data due on Wednesday and Thursday, respectively.


The Australian Dollar pared some of its losses against the US Dollar on Tuesday and finished the session with minimal gains of 0.05%. As the Asian session begins, the AUD/USD trades at 0.6542, at the time of writing, down by 0.02% as investors brace for the release of crucial data.


NZD/USD extends its losing streak for the fourth consecutive session, plunging to near 0.6110 during the Asian trading hours on Wednesday. The pair faces challenges as the Reserve Bank of New Zealand (RBNZ) decided to hold the Official Cash Rate (OCR) unchanged at 5.5% in its February monetary policy meeting.


The USD/CAD pair scales higher for the fourth successive day on Wednesday and climbs to a nearly two-week high, around the 1.3545 region during the Asian session. The positive move is exclusively sponsored by a modest pickup in the US Dollar (USD) demand, though bullish Crude Oil prices might keep a lid on any further gains.


USD/CHF rebounds after two days of losses, improving to near psychological level of 0.8800 during the Asian trading hours on Wednesday. The Swiss Franc (CHF) receives downward pressure ahead of the Swiss ZEW Survey – Expectations, scheduled to be released later in the day.


Oil prices pulled back in Asia on Wednesday as the prospect of a delay in the U.S. rate-cutting cycle and a rise in U.S. crude stocks offset a boost on Tuesday from news OPEC+ might extend its output cuts.


Gold price is duplicating the price action seen during Tuesday’s Asian trading, as bulls attempt another comeback early Wednesday. The USD is building on the previous recovery, despite a minor pullback in the US Treasury bond yields, as markets turn tentative ahead of a fresh batch of US GDP and PCE data due later in the day.

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