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04.03.2024 Market Report


EUR/USD is holding gains near 1.0850 in Asian trading on Monday. The US Dollar is finding its feeling, as Asian markets trade mixed and fuel a sense of caution. Investors remain unnerved ahead of a big week, with ECB rate decision and Powell’s testimony in focus. 


The GBP/USD pair builds on Friday’s goodish rebound from the 1.2600 round figure, or a one-and-half-week trough and gains some positive traction for the second successive day on Monday. The momentum lifts spot prices to a multi-day peak, around the 1.2660-1.2665 area during the Asian session.


The USD/JPY stages a recovery after diving to a two-week low of 149.21, climbing above the 150.00 figure on Friday amidst dovish comments by the Bank of Japan (BoJ) Governor Kazuo Ueda during the Asian session. That favored the Greenback, which paired Thursday’s losses, and currently stands at 150.12, up by a modest 0.10%.


The AUD/USD pair trades on a weaker note below the mid-0.6500s during the early Asian session on Monday. The pair loses traction despite the lower US Dollar (USD) and US yields. Investors await the release of Australian Gross Domestic Product (GDP) for the fourth quarter ahead of US Nonfarm Payrolls (NFP). AUD/USD currently trades near 0.6525, down 0.08% on the day. 


NZD/USD retraces recent gains, lowering down to near 0.6100 during the Asian session on Monday. The Terms of Trade Index released by Statistics New Zealand, a measure of the balance amount between imports and exports, indicated a trade deficit of 7.8% for the fourth quarter of 2023, which was higher than market expectations of a 0.2% deficit. The previous reading was a 0.6% decrease in the third quarter.


USD/CAD retraces recent losses, reaching higher to near 1.3560 during the Asian session on Monday. This retracement occurred despite higher Crude oil prices, which typically support the Canadian Dollar (CAD) due to Canada’s status as a major oil exporter. This, in turn, could limit the advances of the USD/CAD pair.


The USD/CHF pair struggles to gain ground near 0.8830 after retreating from nearly the 0.8900 mark during the early European trading hours on Monday. The downtick of the pair is backed by the weaker US Dollar (USD) and lower US Treasury bond yields. Market players await the Swiss February Consumer Price Index (CPI) for fresh impetus, which is expected to ease from 1.3% in January to 1.1% in February. 


Oil prices rose slightly in Asian trade on Monday as the OPEC+ maintained its current pace of production cuts until the second quarter, although calls from top U.S. officials for an immediate Israel-Hamas ceasefire dulled crude’s momentum.


Gold price is seen oscillating in a narrow range during the Asian session on Monday and consolidating last week’s strong gains to the $2,088-2,089 region, or its highest level since December 28. The US Dollar continues to be undermined by the disappointing release of the US ISM survey on Friday.

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