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17.04.2024 Market Report


EUR/USD is recovering ground toward 1.0650 in early Europe on Wednesday. The US Dollar has entered a consolidative mode, allowing the Euro to heal its wounds. The EUR/USD rebound appears limited amid Fed-ECB policy divergence. ECB and Fed speeches awaited. 


GBP/USD is clinging to recovery gains above 1.2400 in the European morning on Wednesday. The pair benefits from a pause in the US Dollar rally and a return of risk appetite. But traders refrain from placing fresh bets ahead of the key UK CPI inflation data. 


The USD/JPY pair trades with mild losses near 154.65 on Wednesday during the early Asian trading hours. The robust US economy and sticky inflation data have triggered the expectation that the Federal Reserve (Fed) might delay the easing cycle to September from June, which provides some support to the US Dollar (USD) against the Japanese Yen (JPY). However, the escalating tensions in the Middle East might boost safe-haven assets like JPY and cap the pair’s upside. 


The Australian Dollar (AUD) ends its three-day decline on Wednesday, bouncing back from levels not seen since mid-November. Nevertheless, hawkish remarks from Federal Reserve (Fed) officials and the influx of safe-haven flows could bolster the US Dollar (USD) and potentially limit the upside of AUD/USD in the short term.


The NZD/USD pair rebounds to 0.5905, bouncing off the yearly low of 0.5860 on Wednesday during the early Asian session. The expectation that the Reserve Bank of New Zealand is unlikely to lower its Official Cash Rate (OCR) soon lift the New Zealand Dollar (NZD) against the US Dollar (USD). 


USD/CAD snaps its five-day winning streak, trading around 1.3820 during the Asian session on Wednesday. The mild correction in the US Dollar (USD) contributes to downward pressure on the USD/CAD pair. However, the weaker crude Oil prices could put pressure on the Canadian Dollar (CAD), consequently, limiting the losses of the pair.


The US Dollar posts minimal gains versus the Swiss Franc in the mid-North American session and gains 0.12%, trading at 0.9127 at the time of writing. Risk aversion, higher US Treasury yields, and solid US Retail Sales data boost the Greenback.


Oil prices extended losses in early trade on Wednesday as worries about global demand due to weak economic momentum in China and a likely rise in U.S. commercial stockpiles outweighed supply fears from heightened tensions in the Middle East.


Gold price is battling it out just below $2,400 early Wednesday after witnessing a muted close a day ago. Gold makes another attempt to recapture the $2,400 level, as the US Dollar follows a minor pullback in the US Treasury bond yields, awaiting a fresh bunch of US Federal Reserve speakers.

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