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02.04.2024 Market Report


EUR/USD remains under selling pressure nearly a weekly low below 1.0750 in Tuesday’s Asian trading.  The recent US Dollar upsurge, in the wake of strong US ISM PMI data, weighs on the pair amid investors’ nervousness ahead of the key German inflation data. 


GBP/USD remains on the defensive around 1.2545 during the Asian session on Tuesday. The US Dollar Index rises above the 105.00 mark, and the US Treasury bond yields edges higher sharply overnight following the upbeat US ISM data, which creates a headwind for the pair. 


The USD/JPY remains subdued amid speculation of possible intervention by Japanese authorities. Although US Treasury yields pushed higher during Monday’s session, with the 10-year benchmark note rate rising 11 basis points, the pair stood shy of the day’s high of 151.77. At the time of writing, the major trades at 151.63, up 0.15%.


On Monday, the Australian Dollar registered losses of 0.4% against the US Dollar, sponsored by an improvement in business activity in the United States (US). However, with the Tuesday Asian session beginning, the AUD/USD is virtually unchanged at 0.6490, near the weekly lows at the time of writing.


The NZD/USD pair oscillates in a narrow trading band during the Asian session on Tuesday and consolidates its recent losses to the lowest level since November 14 touched the previous day. Spot prices hold steady around mid-0.5900s and seem vulnerable to prolonging a multi-week-old descending trend.


The USD/CAD pair attracts some buyers for the second straight day on Tuesday and looks to build on the overnight bounce from the 1.3515 region, or over a one-week low. Spot prices currently trade around the 1.3580 area and remain supported by some follow-through US Dollar (USD) buying, though bullish Crude Oil prices might cap any further gains.


The USD/CHF pair trades with mild negative bias around 0.9015 during the early European session on Monday. The dovish comments from Federal Reserve (Fed) Chairman Jerome Powell on Friday weigh on the US Dollar (USD) and cap the upside of the USD/CHF pair. The attention is shifted to the US March ISM Manufacturing Purchasing Managers Index (PMI), due later on Monday. The market is likely to stay subdued amid the Easter Monday bank holiday in Switzerland, 


Oil prices rose on Tuesday, underpinned by signs that demand may improve China and the U.S., the world’s biggest oil consuming nations, and growing concerns of a widening conflict in the Middle East that could affect supply from region.


Gold price stalls its recent upward trajectory to a fresh all-time peak touched on Monday. Reduced June Fed rate cut bets continue to underpin the USD and act as a headwind. The downside remains cushioned amid the risk-off mood and persistent geopolitical risks.

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