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23.05.2024 Market Report


EUR/USD is on a modest recovery mode above 1.0800 in early Europe on Thursday. The pair finds support from the struggling US Dollar and US Treasury bond yields after the hawkish Fed-inspired upswing. The focus now stays on the EU and US PMI data. 


The GBP/USD pair extends the rally near 1.2720 during the early Thursday. The uptick of the major pair is bolstered by the hotter-than-expected UK CPI inflation data, which slashed June rate cut bets from the Bank of England.


The Japanese Yen (JPY) remains flat despite the Bank of Japan (BoJ) announcing on Thursday that it left the Japanese government bonds (JGB) amounts unchanged compared to the previous operation. Over a month ago, the BoJ trimmed the amount of 5-10 years it bought in a scheduled operation.


The Australian Dollar (AUD) halts its three-day losing streak on Thursday, possibly driven by the improved risk appetite. However, the Aussie Dollar came under pressure following the Consumer Inflation Expectation, released by the Melbourne Institute. Consumer expectations of future inflation over the next 12 months fell to 4.1% in May from 4.6% in April, marking the lowest level since October 2021.


The NZD/USD pair gains momentum around 0.6108 during the Asian trading hours on Thursday. The New Zealand Dollar (NZD) edges higher as the Reserve Bank of New Zealand (RBNZ) kept interest rates steady and signaled the potential delay in interest rate cuts due to headwinds from sticky inflation. 


The USD/CAD pair moves higher to 1.3660 in Thursday’s American session. The Loonie asset gains as the US Dollar rises due to the release of the Federal Open Market Committee (FOMC) minutes, which was published yesterday.


USD/CHF is in the process of breaking back inside its rising channel as the bull trend tries to pick up momentum following a period of weakness. 


Oil prices eased for a fourth straight session on Thursday after the minutes of a U.S. Federal Reserve meeting revealed discussions of a further tightening of interest rates if inflation remained sticky, a move that could hurt oil demand.


Gold price is licking its wound near a five-day high below $2,370 in the Asian session on Thursday. Gold price is on a three-day downtrend, undermined by the hawkish Minutes of the US Federal Reserve (Fed) May policy meeting.

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