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10.05.2024 Market Report


EUR/USD gained ground on Thursday, finding upside on the week after the US Dollar (USD) broadly fell back after rising US Initial Jobless Claims sparked renewed hope of rate cuts from the Federal Reserve (Fed). US Initial Jobless Claims rose to 231K for the week ended May 3, the highest number of new jobless benefits seekers week-on-week since last August. With possible signs of weakness appearing in the US job market, rate-hungry markets pivoted into risk appetite


The GBP/USD pair posts modest gains near 1.2525 during the early Asian session on Friday. The major pair bounces off the lows of 1.2445 after the Bank of England (BoE)’s dovish hold. The attention on Friday will shift to the first reading of the UK Gross Domestic Product (GDP) for Q1 and the US Michigan Consumer Sentiment report. 


The USD/JPY pair trades in positive territory for the third consecutive day around 154.75 during the early Asian session on Wednesday. The higher-for-longer US rate narrative continues to support the US Dollar (USD) and lift the pair. Nonetheless, further steps from Japanese authorities to prevent the Japanese Yen’s current weakness might cap the pair’s upside in the near term. 


AUD/USD is retracing its recent gains on Friday, following a rally on Thursday. The rally was propelled by a decline in the US Dollar as weak US Initial Jobless Claims indicated a more dovish outlook for the Federal Reserve. This helped offset pressure on the pair resulting from the RBA’s less hawkish stance.


NZD/USD has halted its two days of gains, trading around 0.6020 during the Asian session on Friday. The New Zealand Dollar (NZD) received pressure after the release of the Business NZ Performance of Manufacturing Index (PMI), gauging business activity in New Zealand’s manufacturing sector.


The USD/CAD pair edges higher to near 1.3690 during the Asian trading hours on Friday. The upward correction in the US Dollar (USD) supported the pair, which could be attributed to the hawkish sentiment surrounding the Federal Reserve (Fed) to keep higher interest rates for an extended period.


The USD/CHF pair trades on a stronger note around 0.9085 during the early European session on Friday. The modest rebound of the Greenback, supported by the hawkish comments from the US Federal Reserve (Fed) officials provides some support to the pair. Investors will monitor the Fed’s Daly’s speech later on Thursday amid the lack of top-tier economic data release from the US and Switzerland. 


Oil prices rose in Asian trade on Friday and were set to clock a strong week after positive cues on demand in top importer China, while an Israel-Hamas ceasefire appeared increasingly unlikely. 


Gold price gains momentum on Friday despite the modest rebound in US Dollar. The yellow metal edges higher as many economists expect a weakening labor market could prompt the Federal Reserve to cut interest rates sooner than currently expected to stimulate economic growth.

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