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16.05.2024 Market Report


EUR/USD climbed on Wednesday in one of the pair’s single-best days of 2024, climbing towards 1.0900 and on pace to etch in a fourth consecutive gain week. Broad-market selling pressure deflated the US Dollar (USD) after risk appetite roared to the forefront after US Consumer Price Index (CPI) inflation eased more than investors expected.


The GBP/USD pair extends its upside near 1.2688 on Thursday during the early Asian session. The uptick of the major pair is supported by the weaker Greenback after the release of softer US CPI inflation data. Later in the day, the US Building Permits, Housing Starts, the weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and Industrial Production will be released. Also, the Federal Reserve’s (Fed) Barr, Harker, Mester, and Bostic are set to speak on Thursday. 


USD/JPY trims losses near 154.45 during the Asian session on Thursday. The softer US CPI inflation data has exerted some selling pressure on the US Dollar. However, the major pair recovers modestly following the recent weaker-than-expected Japan’s Gross Domestic Product in the first quarter of 2024. 


The AUD/USD snapped its three-day winning streak, trading around 0.6680 after the higher-than-expected Aussie Unemployment Rate on Thursday, which rose to 4.1% in April from the previous reading of 3.9%. 


The NZD/USD pair gains momentum around 0.6120 during the early trading hours on Thursday. The softer US CPI in April has prompted the prospect of rate cuts from the Federal Reserve (Fed) this year, which exerts some selling pressure on the Greenback. The US housing data, the weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and Industrial Production will be due later in the day. 


The USD/CAD pair rebounds sharply after falling to near 1.3600 level in Thursday’s New York session. The Loonie asset recovers as poor Canadian Manufacturing Sales data weakens the Canadian Dollar.


USD/CHF edges lower for the second successive session, trading around 0.9060 during the Asian hours on Thursday. The decline of the USD/CHF pair could be attributed to the weaker US Dollar (USD) as investors shrugged off the higher-than-expected US Producer Price Index data for April.


Oil prices rose in Asian trade on Thursday, extending gains from the prior session as a softer-than-expected U.S. consumer inflation reading brought down the dollar and ramped up hopes of interest rate cuts. 


Gold price gains traction amid the weaker US Dollar on Thursday. The recent Consumer Price Index report showed inflation in the US slowed in April, prompting market players to increase their bets on the US Federal Reserve rate cuts this year. 

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