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07.06.2024 Market Report


EUR/USD is trading close to 1.0900, slightly on the front foot early Friday. The pair capitalizes on a risk-on market environment, as markets cheer Thursday’s rate cut decision by the ECB, which ramped up expectations of a Sept Fed rate cut. All eyes remain on the US NFP data. 


GBP/USD trades around a flatline below 1.2800 in the European morning on Friday. The pair lacks a clear directional bias, as traders drift on the sidelines ahead of the all-important US Nonfarm Payrolls data. 


The Japanese Yen (JPY) edges lower on Friday, possibly influenced by the reduced Japanese Foreign Reserves released by the Ministry of Finance for May. Foreign exchange reserves dropped significantly to $1,231 billion in May from $1,279 billion, marking the lowest level since February 2023, as the government conducted foreign exchange intervention operations to defend the JPY.


The Australian Dollar (AUD) edges higher following China’s Trade Balance data release on Friday. The National Bureau of Statistics of China reported that Trade Surplus widened to $82.62 billion year-over-year in May, surpassing the expected balance of $73.00 billion and the previous balance of $65.55 billion. Any change in China’s economy could impact the Australian market as both countries are close trade partners.


The NZD/USD pair trades on a stronger note near 0.6195 during the early Asian session on Friday. The weaker US Dollar (USD) amid rising speculation of an interest rate cut from the US Federal Reserve (Fed) this year continues to underpin the NZD/USD pair. The market might turn cautious later on Friday ahead of the release of highly anticipated US Nonfarm Payrolls (NFP) data for May. 


The USD/CAD pair seems to struggle to attract any meaningful buyers during the Asian session on Friday. Spot prices currently trade with a mild positive bias, around the 1.3670 area, as traders keenly await the release of the US monthly employment details before placing fresh directional bets.


The USD/CHF pair is slightly positive in Friday’s Asian session but trades close to its crucial support of 0.8883. The Swiss Franc asset remains under pressure in past few trading sessions as the US Dollar struggles to gain ground due to growing speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting.


Oil prices ticked higher on Friday, as reassurances from OPEC+ members Saudi Arabia and Russia indicating readiness to pause or reverse output agreements, but markets were headed for their third straight weekly losses.


Gold price enters a bullish consolidation phase near a two-week high touched on Thursday. Traders prefer to wait for the US NFP report before positioning for the near-term trajectory. Fed rate cut bets are keeping the US bond yields and the USD depressed, lending some support.

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