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05.06.2024 Market Report


EUR/USD is consolidating below 1.0900 early Wednesday amid a modest US Dollar uptick. Fed rate cut bets keep the US bond yields depressed, capping the pair’s downside. Wednesday’s key US data might provide some impetus ahead of the ECB on Thursday.


The GBP/USD pair trades with a mild positive bias around the 1.2775-1.2780 area during the Asian session on Wednesday and remains well within the striking distance of its highest level since March 14 touched the previous day.


The Japanese Yen (JPY) edges lower on Wednesday due to investors’ caution ahead of key US data releases later in the day, including the US ADP Employment Change and ISM Services PMI reports. Attention is expected to shift toward the Nonfarm Payrolls (NFP) report due on Friday.


The Australian Dollar (AUD) gains ground, possibly due to improved risk sentiment on Wednesday. The upside of the Aussie Dollar could be limited due to the lower-than-expected Gross Domestic Product data, which grew 0.1% QoQ in the first quarter, against the expected 0.2% reading. On an annual basis, the economy grew 1.1%, slightly below the expected 1.2%. The AUD/USD pair received pressure as the Judo Bank Purchasing Managers Index (PMI) came in at 52.5, lower than the expected reading of 53.1 for May.


The NZD/USD pair posts modest gains around 0.6175 during the early Asian session on Wednesday. The USD Index (DXY) weakens to multi-week lows near 104.00 on the back of rising speculation of an interest rate cut by the Federal Reserve (Fed) this year, which provides some support to the pair. Investors await the key US data releases later on Wednesday, including the US ADP Employment Change, the final S&P Global Services PMI, and the ISM Services PMI.


The USDCAD pair trades stronger on the day around 1.3678 in the early Asian session on Wednesday. The Bank of Canada’s (BoC) interest rate decision on Wednesday will be in the spotlight.


The USD/CHF pair finds temporary support near 0.8900 in Wednesday’s Asian session. The outlook of the Swiss Franc asset appears to be vulnerable as the recovery move in the US Dollar (USD) seems stalling amid growing speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting.


Oil prices hovered near four-month lows in Asia on Wednesday as markets digested an OPEC+ decision to boost supply later this year and following an increase in U.S. crude and fuel stocks.


Gold price is attempting a tepid rebound toward $2,340 early Wednesday, having tested the three-week low of $2,315 a day ago. Attention turns toward the top-tier US ADP jobs and ISM Services PMI data for fresh cues on the US Federal Reserve interest rate outlook.

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