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20.05.2024 Market Report


EUR/USD is edging higher toward 1.0900 early Monday, helped by a better market mood. The pair also draws support from softer US Dollar and US Treasury bond yields, awaiting Fedspeak amid light European trading. 


GBP/USD extends its gains for the second consecutive session, trading around 1.2710 during the Asian hours on Monday. A weaker US Dollar supports the pair. The Pound Sterling may face a challenge as the BoE is expected to deliver 60 basis points rate cuts in 2024.


The USD/JPY pair trades in positive territory for the third consecutive trading day around 155.80 during the early Asian session on Monday. The downtick of the pair is supported by weaker Japan’s GDP data in the first quarter (Q1). The Fed’s Bostic, Barr, Waller, Jefferson, and Mester are set to speak later in the day. The FOMC Minutes will be due on Wednesday. On Friday, the Japanese National Consumer Price Index (CPI) will be in the spotlight. 


The Australian Dollar (AUD) extends gains for the second consecutive session on Monday. The weaker US Dollar (USD) supports to underpin the AUD/USD pair. However, the Aussie Dollar trims gains after the interest rate decision from China. The People’s Bank of China (PBOC) kept the one-year and five-year Loan Prime Rates (LPR) steady at 3.45% and 3.95%, respectively.


The NZD/USD pair trades around 0.6130 during Asian trading hours on Monday as investors anticipate the Reserve Bank of New Zealand’s (RBNZ) policy meeting on Wednesday. The RBNZ is expected to maintain its Official Cash Rate at 5.5% for the seventh consecutive meeting. Policymakers are likely to emphasize the importance of keeping the policy restrictive for an extended period to bring inflation back to the 1-3% target range.


The USD/CAD pair rises further to 1.3640 in Monday’s European session. The Loonie asset capitalizes on strong recovery in the US Dollar that is driven by hawkish guidance on interest rates by Federal Reserve (Fed) officials.


USD/CHF extends its gains for the third day, trading around 0.9080 during the early European hours on Monday. The Swiss Franc (CHF) depreciated against the US Dollar (USD) after the release of the lower Industrial Production released by Swiss Statistics.


Oil prices rose slightly in Asian trade on Monday as traders sought more information on rescue attempts for Iran’s President after a helicopter crash. 


Gold price gains momentum on Monday. The yellow metal hit a record high near $2,441 during the Asian session on Monday amid renewed hopes for interest rate cuts from the US Federal Reserve and rising geopolitical tensions in the Middle East.

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