Pre Loader

02.05.2024 Market Report


EUR/USD continues to gain ground on Thursday as the prevailing positive sentiment in the market provides support for risk-sensitive currencies like the Euro. This improved risk appetite could be attributed to dovish remarks from Federal Reserve Chairman Jerome Powell on Wednesday.


GBP/USD gains traction near 1.2535 during the early Thursday. The uptick of the major pair is supported by the sharp decline of the US Dollar after the US Federal Reserve left its interest rate unchanged. 


The USD/JPY trades at 157.42 after the Federal Reserve (Fed) decision to hold rates at 5.25%-5.5% on Wednesday.

In the statement, the Federal Reserve has acknowledged that there has been no significant progress in the battle against inflation recently, noting a “lack of further progress toward the 2% inflation goal in recent months.” This observation formed the core of their hawkish stance, which was anticipated by markets. Despite this, the Fed decided to slow down the pace of Quantitative Tightening, a move that was expected. They now view the risks to inflation as more balanced, leading to a unanimous vote among the members.


The Australian Dollar (AUD) extends its gains on Thursday despite the weaker-than-expected Trade Balance and Building Permits data released by the Australian Bureau of Statistics. The AUD/USD pair receives support from the prevailing positive market sentiment after dovish remarks from the Federal Reserve Chairman Jerome Powell on Wednesday. 


The NZD/USD found some momentum after the widely-anticipated Federal Reserve (Fed) decision which announced yet another hold, leaving rates at the 5.25-5.50% range. Powell’s cautious tone and data dependency were taken as dovish by markets which made investors dump the USD.


The USD/CAD pair extends its downside around 1.3730 during the early Asian trading hours. The downtick of the pair is backed by the weaker US Dollar Index (DXY) to 105.75. The US Federal Reserve (Fed) kept its benchmark short-term borrowing rate in a targeted range between 5.25% and 5.50% and expressed more caution than before over future interest rate cuts. Later in the day, the usual US weekly Initial Jobless Claims and March’s Goods Trade Balance are due.


The USD/CHF pair aspires to shift comfortably above the 0.9200 mark in Thursday’s early American session. The appeal for the Swiss Franc asset remains upbeat as the US Dollar clings to gains after strong United States ADP Employment Change data for April.


Oil prices rose on Thursday, rebounding from three days of losses, on expectations the lower levels may prompt the U.S., the world’s biggest crude consumer, to start replenishing its strategic reserve, putting a floor under prices.


Gold price fails to lure buyers amid a fresh leg up in the US bond yields, modest USD uptick. A positive risk tone also contributes to capping the upside for the safe-haven precious metal. Traders, however, might prefer to wait for the US NFP report before placing aggressive bets.

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.