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19.04.2024 Market Report


The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.


GBP/USD stays vulnerable near 1.2400 early Friday, sitting at five-month troughs. The UK Retail Sales data came in mixed and added to the weakness in the pair. Risk-aversion on the Middle East escalation keeps the pair on the back foot. 


The USD/JPY pair attracts some sellers around 154.15 on Friday during the early Asian trading hours. The risk-off mood and rising tension between Israel and Iran boost the safe-haven flows, benefiting the Japanese Yen (JPY). However, the robust US economic data and any hawkish comments from the Federal Reserve (Fed) officials might cap the pair upside in the near term. The Bank of Japan (BoJ) will hold a meeting next week and it is expected to revise up its inflation forecast for this fiscal year in a quarterly report.


The Australian Dollar (AUD) remains in the negative territory after paring losses on Friday. The AUD/USD pair dropped as riskier assets faced pressure due to heightened risk aversion across financial markets. This sentiment intensified following confirmation from ABC News that Israeli missiles had struck a site in Iran, exacerbating tensions in the Middle East.


The NZD/USD pair remains under selling pressure around 0.5880 on Friday during the early European session. The risk-off environment amid the escalating tension between Israel and Iran lifts the Greenback and weighs on NZD/USD. Meanwhile, the US Dollar Index (DXY) edges higher above 106.20, nearly the highest level since November 2023. 


USD/CAD pares its intraday gains, trading around 1.3780 during the Asian session on Friday. However, the pair received upward support as the safe-haven US Dollar (USD) gained traction following news of Israeli missiles striking a site in Iran, exacerbating tensions in the Middle East. However, Iranian media has refuted reports of a foreign attack on Iranian cities, including Isfahan.


The USD/CHF pair falls below the mark of 0.9100 in Friday’s European session. The Swiss Franc asset comes under pressure as the US Dollar drops amid cheerful market mood.

The US Dollar faces selling pressure after refreshing a five-month high. The US Dollar Index (DXY) drops to 105.85 as investors reassess speculation about rate cuts by other central banks from developed nations. Federal Reserve (Fed) Chair Jerome Powell supported keeping interest rates higher for an extended period, with inflation remaining stubbornly higher in the first three months of this year, but policymakers from other central banks also turned cautious about premature rate cuts.


Oil prices jumped $3 a barrel on Friday in reaction to reports that Israeli missiles had struck a site in Iran, sparking concerns that Middle East oil supply could be disrupted.


Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.

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