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17.05.2024 Market Report


EUR/USD eased slightly on Thursday, falling back below 1.0880 as the Greenback broadly recovers losses from earlier in the week. The pair remains up for the trading week, but a late break for the US Dollar is on the cards as investors second-guess the Fed’s stance on rate cuts.


The GBP/USD pair posts modest gains near 1.2670 during the early Asian session on Friday. Meanwhile, the USD Index (DXY) recovers some lost ground after retracing to multi-week lows near 104.00 in the previous session. The Federal Reserve (Fed) sticks to cautious tones regarding inflation and the chance of rate cuts this year. Investors will take more cues from the Fed’s Kashkari, Waller, and Daly speeches later in the day.


USD/JPY rose to near 155.90 during the Asian session on Friday as the Japanese Yen (JPY) encountered renewed pressure. This was sparked by the Bank of Japan (BoJ) maintaining its bond-buying amounts from the previous operation, opting against a surprise cut to debt purchasing earlier in the week.


The AUD/USD continues to decline for the second consecutive session, trading around 0.6660. This is largely influenced by recent mixed economic data from China released on Friday. The Aussie dollar had already been under pressure after Australia’s employment figures were released on Thursday, which presented a mixed picture.


The NZD/USD pair extended its losses to near 0.6110 during the Asian session on Friday. This decline can be attributed to the recovery of the US Dollar (USD), which rebounded after hitting multi-week lows around 104.00 on Thursday.


The USD/CAD pair trades on a stronger note around 1.3620 on Friday during the early Asian trading hours. The uptick of the pair is bolstered by the renewed US Dollar (USD) demand as the US Federal Reserve (Fed) officials emphasized their cautious stance to hold rates higher for longer. 


USD/CHF continues its losing streak, hovering around 0.9000 during the European trading session on Thursday. The pair received pressure as the US Dollar (USD) struggled due to growing expectations of multiple rate cuts by the Federal Reserve (Fed) in 2024.


Oil prices rose in Asian trading hours on Friday, with global benchmark Brent set for its first weekly increase in three weeks on signs of improving global demand and slowing inflation in top oil consumer the United States.


Gold price trades with a bearish bias on Friday after retreating from the nearly $2,400 barrier. The bullish move of precious metals in the previous sessions was bolstered by the softer-than-expected US inflation data in April, which triggered hope for rate cuts from the US Federal Reserve.

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