Pre Loader

24.04.2024 Market Report


EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany’s IFO survey is next in focus. 


GBP/USD is keeping its range at around 1.2450 in European trading on Wednesday. A broadly muted US Dollar combined with a risk-on market mood lend support to the pair, as traders await the mid-tier US Durable Goods data for further trading directives. 


The Japanese Yen (JPY) remains on the back foot against its American counterpart and trades near a multi-decade low during the Asian session on Wednesday. The Bank of Japan’s (BoJ) cautious approach towards further policy normalization marks a big divergence in comparison to expectations that the Federal Reserve (Fed) will delay cutting interest rates amid sticky inflation. This, along with a generally positive risk tone, bolstered by easing geopolitical tensions in the Middle East, turn out to be key factors that continue to undermine the safe-haven JPY. 


The Australian Dollar (AUD) extends its winning streak for the third successive day after the release of the better-than-expected Consumer Price Index (CPI) data on Wednesday. The upbeat inflation figures have the potential to fuel a hawkish sentiment regarding the Reserve Bank of Australia’s (RBA) monetary policy outlook. This has contributed to the strength of the Australian Dollar (AUD), thereby supporting the AUD/USD pair.


The NZD/USD pair attracts follow-through buying for the third successive day on Wednesday and climbs to over a one-week high, around mid-0.5900s during the Asian session amid a modest US Dollar (USD) weakness. 

Weaker US PMI prints released on Tuesday indicated that the economic upturn lost momentum at the start of the second quarter. Furthermore, easing geopolitical tensions in the Middle East remains supportive of a generally positive tone around the equity markets and undermines the safe-haven buck, which, in turn, is seen benefitting the risk-sensitive Kiwi. That said, hawkish Federal Reserve (Fed) expectations help limit the downside for the USD and keep a lid on the NZD/USD pair. 


USD/CAD continues its losing streak that began on April 17, trading around 1.3660 during the Asian session on Wednesday. The pair receives downward pressure due to the downbeat US Dollar (USD), which could be attributed to the disappointing Purchasing Managers Index (PMI) data from the United States (US) released on Tuesday.


The USD/CHF pair faces a sell-off above the 0.9100 level in Wednesday’s session. The Swiss Franc asset falls as the US Dollar Index (DXY) drops to 105.80 after the S&P Global reported weak preliminary PMI data for April.


Oil prices were slightly higher on Wednesday after industry data showed a surprise drop in U.S. crude stocks last week, a positive sign for demand, though markets were also keeping a close eye on hostilities in the Middle East.


Gold price is nursing losses while holding above $2,300 early Wednesday, stalling its two-day decline, as traders look forward to the mid-tier US economic data for fresh cues on the US Federal Reserve interest rates outlook.

Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.