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07.05.2024 Market Report


EUR/USD snaps its four-day winning streak, trading around 1.0760 during the Asian hours on Tuesday. However, the Euro found support from higher-than-expected Eurozone Purchasing Managers Index (PMI) data released on Monday. Later on Tuesday, Retail Sales data are set to be released during the upcoming European market session. This data will provide insights into the short-term performance of the retail sector, which contributes approximately 5% to the total value added by the Eurozone economies.


The GBP/USD pair trades in positive territory for the fifth consecutive day near 1.2560 during the Asian session on Tuesday. The weaker US Dollar (USD) provides some support to the major pair. The Bank of England (BoE) interest rate decision on Thursday will be in the spotlight, with no change in rate expected. 


The USD/JPY pair trades on a stronger note around 154.10 on Tuesday during the Asian trading hours. The recovery of the pair is supported by the modest rebound of US Dollar to 105.10 after bouncing off three-week lows. 


AUD/USD spiked lower by more than 20 pips following the RBA rate announcement to test the key psychological support at 0.6600.  Losing this key level could see the currency pair trek lower towards the 100-hour EMA support near 0.6580. 


The NZD/USD pair experienced a slight decline after three consecutive days of gains, trading around 0.6000 during the Asian session on Tuesday. This decline in the pair could be attributed to the rebound in the US Dollar (USD).


The USD/CAD pair falls after failing to recapture the crucial resistance of 1.3700 in Monday’s early New York session. The Loonie asset slips to 1.3650 due to multiple headwinds: a decline in the US Dollar and a sharp recovery in the Oil price.


USD/CHF continues its losing streak for the fourth successive day on Monday, trading around 0.9050 during the European hours. The weaker US Dollar (USD) puts pressure on the USD/CHF pair, which could be attributed to the revived expectations for potential interest rate cuts by the US Federal Reserve (Fed) later this year. This sentiment is derived from the softer-than-expected US jobs data released on Friday.


Oil prices edged higher on Tuesday after Israel struck Rafah in Gaza, while negotiations for a ceasefire with Hamas continued without resolution.


Gold price extends its recovery on Tuesday. The uptick of the yellow metal is bolstered by the weaker US dollar after recent US Nonfarm Payrolls (NFP) data boosted bets that the Federal Reserve would cut interest rates later this year.

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