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30.05.2024 Market Report


EUR/USD trades on the back foot near 1.0800 in early Europe on Thursday. The pair is nursing losses, induced by sustained US Dollar strength and evaporating risk appetite. Traders look to top-tier US economic data and Fedspeak for fresh trading incentives. 


GBP/USD is on the defensive below 1.2700 in the European morning on Thursday. A broadly stronger US Dollar amid waning Fed rate cut expectations and risk-aversion, keeps the pair undermined ahead of US data and Fedspeak. 


The Japanese Yen (JPY) snapped recent losses on Thursday, spurred by comments from Bank of Japan (BoJ) board member Seiji Adachi on Wednesday. Adachi emphasized the gradual reduction of bond purchases to ensure that long-term yields accurately reflect market signals. Additionally, he suggested that raising interest rates could be appropriate if a weaker JPY leads to increased inflation, per Reuters


The Australian Dollar (AUD) extended its losses, possibly driven by investors adopting a cautious stance ahead of the release of US Gross Domestic Product Annualized (Q1) data on Thursday and the Core Personal Consumption Expenditures (PCE) Price Index figures on Friday. These data events are anticipated to offer insights into the Federal Reserve’s potential stance on interest rate adjustments.


The NZD/USD pair edges lower around  0.6105 during the Asian session on Thursday. The release of the New Zealand budget outline for the 2024 fiscal year had little to no impact on the Kiwi as the pair remains influenced by the USD dynamic. New Zealand Finance Minister Nicola Willis stated that the Treasury sees inflation falling to below 3% in Q3 2024 and easing to 2% around 2026. The New Zealand treasury sees NZ GDP contracting in H1 2024, and growth in H2 2024.


The USD/CAD pair establishes itself above the round-level resistance of 1.3700 in Thursday’s Asian session. The Loonie asset aims to recapture weekly high near 1.3740 as the US Dollar strengthens. Strong demand of the US Dollar is driven by a sharp decline in traders’ bets for the Federal Reserve (Fed) reducing interest rates from the September meeting.


The USD/CHF pair trades stronger near 0.9150 during the early European trading hours on Tuesday. The expectation that the US Federal Reserve (Fed) will start cutting interest rates from the September meeting provides some support to the US Dollar (USD) and lifts the pair. Investors await the Swiss National Bank’s (SNB) Chairman Thomas Jordan’s speech on Tuesday for fresh impetus ahead of Switzerland’s Gross Domestic Product (GDP) for Q1. 


Oil prices were mostly stable on Thursday as the markets await U.S. crude oil stockpiles data, though resilient U.S. economic activity pointed to borrowing costs staying higher for longer in a potential blow to demand.


The USD/CHF pair trades flat around 0.9125 during the early European session on Thursday. Traders remain cautious ahead of the crucial inflation readings this week.

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