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24.05.2024 Market Report


EUR/USD is battling 1.0800 in European trading on Friday. The pair stays undermined by the recent strength in the US Dollar on strong US PMI data and hawkish Fed expectations. Mid-tier US data and Fedspeak are next on tap. 


GBP/USD trades listlessly below 1.2700 early Friday, as traders await the top-tier UK Retail Sales data for fresh trading impetus. The pair is on a corrective decline from two-month highs of 1.2761 on resurgent US Dollar demand. 


The Japanese Yen (JPY) continued its decline on Friday after the release of softer National Consumer Price Index (CPI) data by the Statistics Bureau of Japan. The annual inflation rate dropped to 2.5% in April from 2.7% in the previous month, marking the second consecutive month of moderation but still staying above the Bank of Japan’s (BoJ) 2% target. This sustained inflation keeps pressure on the central bank to consider further policy tightening.


The Australian Dollar (AUD) continues its losing streak for the fourth successive session on Friday, possibly driven by risk aversionThe AUD/USD pair experiences downside as the US Dollar (USD) advances on hawkish sentiment surrounding the Federal Reserve (Fed) of maintaining higher policy rates for an extended period.


NZD/USD received pressure due to the emergence of the risk aversion sentiment after the higher-than-expected Purchasing Managers Index (PMI) data from the United States (US) was released on Thursday. The data reinforced the hawkish sentiment surrounding the Federal Reserve (Fed) of maintaining higher policy rates for an extended period. The NZD/USD pair trades around 0.6100 during the Asian session on Friday.


The USD/CAD pair trades on a stronger note for the fifth consecutive day near 1.3730 on Friday during the Asian trading hours. The stronger US Dollar (USD) following the upbeat US PMI data provides some support to the pair. Traders await the Canadian Retail Sales and US Durable Goods Orders for fresh impetus. Also, the Fed’s Waller is set to speak later in the day. 


The USD/CHF pair dips after facing selling pressure near 0.9140 in Friday’s European session. The Swiss Franc asset comes under pressure as the US Dollar edges down amid firm speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting. The market sentiment has improved due to firm Fed rate-cut prospects.


Oil prices were stable on Friday as investors considered the latest comments from the U.S. Federal Reserve on interest rates amid sticky inflation, while signs of firming seasonal U.S. fuel demand lent support.


Gold price is nursing losses while flirting with two-week lows near $2,327 in the Asian session on Friday. Gold price extends its losing streak into the fourth straight day, remaining on track to book the first weekly loss in three weeks.

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