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03.06.2024 Market Report


EUR/USD is paring back gains to trade near 1.0850 in the European morning on Monday. Softer US monthly Core PCE inflation data and hotter-than-expected Eurozone HICP inflation data help the pair to stay afloat amid a better market mood. US ISM PMI holds the key. 


The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band, around mid-1.2700s during the Asian session. The downside, meanwhile, remains cushioned in the wake of a modest US Dollar weakness, weighed down by signs of easing inflationary pressures in the United States. 


The Japanese Yen (JPY) depreciates, with Japanese Economy Minister Yoshitaka Shindo announcing on Monday that the government will “continue efforts for primary balance to reach within surplus territory in FY 2025.” Shindo also expressed optimism, stating that “Real economic growth of 1.3% in FY 2025 is not so unrealistic,” per Reuters.


The Australian Dollar (AUD) stays steady as investors turn cautious ahead of the ISM Manufacturing PMI release on Monday. During the early hours of the Asian session, AUD received support as the minimum wage increased by 3.75% in Australia, aligning with market estimates that ranged from 3.5% to 4.0%. Additionally, the AUD/USD pair strengthened as the US Personal Consumption Expenditure (PCE) data, the Federal Reserve’s preferred measure of inflation, showed that price pressures eased in April. Moreover, Australia’s monthly inflation rate also accelerated to 3.6%, increasing the likelihood that the Reserve Bank of Australia (RBA) might need to raise interest rates again.


The NZD/USD pair is stuck in a tight range near 0.6150 in Monday’s Asian session. The Kiwi asset trades inside Friday’s trading range, suggesting indecisiveness among market participants ahead of a busy United States (US) data-packed week.


The USD/CAD pair trades with a mild bearish bias around 1.3625 during the early European session on Monday. The downtick of the pair is backed by the weaker US Dollar (USD) after the release of the US Personal Consumption Expenditures (PCE) Price Index. Investors will take more cues from the Canadian S&P Global Manufacturing PMI and US ISM Manufacturing PMI for May, which are due later on Monday. 


The USD/CHF pair rebounds to near 0.9050 in Monday’s European session after discovering buying interest around 0.9020. The Swiss Franc asset finds cushion as the US Dollar manages to have a firm footing amid a cautious market mood.


Oil prices rose in Asian trade on Monday after the OPEC+ extended its current run of production cuts into 2025, although speculation over a ceasefire in Gaza kept gains limited. 


Gold price is licking its wounds while trading close to over two-week lows of $2,321, setting off the week on cautious footing. Gold price fails to find inspiration from broadly softer US Dollar and negative US Treasury bond yields.

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