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06.06.2024 Market Report


The EUR/USD pair gains ground around 1.0875 despite the recovery of the US Dollar during the early Thursday. The European Central Bank interest rate decision and Press Conference by President Christine Lagarde will take centre stage later on Thursday. 


GBP/USD resumes upside near 1.2790 despite the rebound of US Dollar. Traders started to price in two interest rate cuts by the Federal Reserve this year as the US economy grew at a slower pace in the first quarter than projected earlier.


The Japanese Yen (JPY) appreciated on Thursday, while the US Dollar (USD) lost ground due to rising speculation of an interest rate cut by the US Federal Reserve (Fed) in September. The depreciation of US Treasury yields is putting pressure on the US Dollar (USD), undermining the USD/JPY pair. Investors are awaiting key US employment data releases on Friday, including Average Hourly Earnings and Nonfarm Payrolls.


The Australian Dollar (AUD) retraced its recent losses on Thursday. The AUD/USD pair strengthened after the Trade Balance release in Australia, which widened to 6,548 million month-over-month in May, exceeding the expected 5,500 million and April’s balance of 5,024 million. Australia’s Imports plunged by 7.2% MoM in May, swinging from April’s 4.2% increase. Exports shrank 2.5% following the previous decline of 0.6%.


The NZD/USD pair extends the rally to three-month highs around 0.6205 on Thursday during the early Asian trading hours. Investors start to price in two interest rate cuts by the Federal Reserve (Fed) this year, which drags the Greenback lower against the Kiwi. The US weekly Initial Jobless Claims is due on Thursday ahead of the highly-anticipated US Nonfarm Payrolls (NFP) data on Friday. 


USD/CAD retreats after two days of gains, trading around 1.3680 during the Asian session on Thursday. The US Dollar (USD) struggled after mixed economic data was released in the United States (US), which fueled interest rate cut speculations by the US Federal Reserve (Fed). Investors are awaiting key US employment data releases on Friday, including Average Hourly Earnings and Nonfarm Payrolls.


The USD/CHF pair finds temporary support near 0.8900 in Thursday’s Asian session. The outlook of the Swiss Franc asset appears to be vulnerable as the recovery move in the US Dollar (USD) seems stalling amid growing speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting.


Saudi Arabia set its flagship Arab Light crude oil official selling price (OSP) to Asia at plus $2.40 versus Oman/Dubai average for July, a document seen by Reuters showed on Wednesday.


Gold price advances to a two-week top amid the emergence of fresh USD selling. Rising Fed rate cut bets keep the US bond yields depressed and weigh on the buck. Traders look to the US jobless claims for some impetus ahead of the NFP on Friday. 

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