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05.03.2024 Market Report


The EUR/USD pair struggles to capitalize on its strong gains registered over the past two days and oscillates in a narrow trading band during the Asian session on Tuesday. Spot prices trade around mid-1.0800s, nearly unchanged for the day and just below a one-week high touched on Monday.


GBP/USD trades on a softer note around 1.2685 during the early European session on Tuesday. The major pair edges lower amid the modest recovery of the US Dollar. February’s labor market report this week will be a closely watched event. 


The USD/JPY pair marches toward a three-month high of 150.80 in the early New York session. The asset strengthens as the Japanese Yen comes under pressure after Bank of Japan (BoJ) Governor Kazuo Ueda cited concerns over exiting the dovish monetary policy stance.


The AUD/USD pair lacks any firm intraday direction on the second day of a new week and seesaws between tepid gains/minor losses through the first half of the European session. Spot prices currently trade around the 0.6520-0.6525 area, unchanged for the day and remain well within the striking distance of a nearly three-week low touched last Thursday.


NZD/USD trims some of its intraday losses as the NZX 50 Index recovers its daily losses on Monday. The NZD/USD pair hovers around 0.6090 during the Asian session on Tuesday. The pair faces downward pressure on risk-off sentiment ahead of key US economic data this week, including the ISM Services PMI data, ADP Employment Change, and Nonfarm Payrolls for February.


The USD/CAD pair holds below the 1.3600 barrier during the early Asian trading hours on Tuesday. The Bank of Canada (BoC) will announce the interest rate decision on Wednesday, with no change in rate expected. Meanwhile, the decline in oil prices weighs on the Loonie and provides some support to the USD/CAD pair. At press time, the pair is trading at 1.3575, unchanged for the day. 


The USD/CHF pair consolidates in a narrow trading range around the mid-0.8800s during the early Asian session on Tuesday. The Institute for Supply Management (ISM) will publish the US Services PMI report later in the day, which is estimated to ease from 53.4 in January to 53.0 in February. At press time, USD/CHF is trading at 0.8855, gaining 0.08% on the day. 


Oil prices fell for a second day on Tuesday as pledges by China to transform its economy amid stuttering growth since the COVID pandemic failed to impress investors concerned about slower consumption.


Gold price is duplicating the corrective moves seen during Monday’s Asian trading, as the US Dollar attempts a tepid recovery early Tuesday amid a risk-off market environment and sluggish US Treasury bond yields.

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