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09.05.2024 Market Report


EUR/USD could extend its losses for the third successive session, trading around 1.0750 during the Asian session on Thursday. The US Dollar appreciates amid expectations of the Federal Reserve’s maintaining higher interest rates. 


GBP/USD extends its losing streak for the third successive session, trading around 1.2490 during the Asian session on Thursday. Thursday brings the Bank of England interest rate decision, with expectations of maintaining interest rate at 5.25%.


The USD/JPY pair trades in positive territory for the fourth consecutive day around 155.60 during the early Asian trading hours on Thursday. However, the fear of further intervention from the Bank of Japan (BoJ) is likely to cap the downside of the Japanese Yen (JPY) for the time being. 


The Australian Dollar (AUD) edged higher on Thursday after the release of the improved Chinese Trade data. However, the Aussie Dollar could face challenges due to the Reserve Bank of Australia (RBA)’s less hawkish stance, especially after last week’s inflation data exceeded predictions. Nevertheless, the RBA acknowledged that recent progress in controlling inflation has stalled, maintaining its stance of keeping options open. The RBA opted to keep its interest rate steady at 4.35% on Tuesday.


NZD/USD has extended its gains for the second consecutive session, trading around 0.6010 during the Asian session on Thursday. The New Zealand Dollar (NZD) gains ground after the release of the Chinese data on Thursday, given the close trade relationship between New Zealand and China.


USD/CAD retraces its recent losses registered in the previous session, trading higher around 1.3730 during the Asian session on Thursday. Investor expectation of the Federal Reserve’s (Fed) maintaining higher interest rates for longer has pushed the US Treasury yields higher. This has contributed support for the US Dollar (USD), underpinning the USD/CAD pair.


The USD/CHF pair posts modest gains near 0.9085 during the early European trading hours on Thursday. The recovery of the US Dollar (USD) is bolstered by hawkish remarks from Federal Reserve (Fed) officials, which dampen hopes for potential interest rate cuts in 2024. 


Oil prices rose in Asian trade on Thursday following somewhat mixed trade data from China, while markets continued to watch for any potential signs of de-escalation in the Middle East.


Gold price trades with a positive bias on Thursday amid the absence of top-tier economic data releases at mid-week. However, multiple headwinds, such as the firmer US Dollar and the hawkish comments from the US Federal Reserve are likely to cap the upside of the precious metal in the near term. 

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