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19.06.2024 Market Report


EUR/USD trades with a mild negative bias, though the downside remains cushioned. September Fed rate cut bets keep the USD bulls on the defensive and lend support. The technical setup favors bearish traders and supports prospects for further losses.


GBP/USD fluctuates above 1.2700 in the early European session on Wednesday. The data from the UK showed that annual inflation, as measured by the change in the Consumer Price Index, declined to 2% in May from 2.3% in April, limiting Pound Sterling’s upside.


The USD/JPY pair is seen oscillating in a narrow band during the Asian session on Wednesday and currently trading just below the 158.00 round-figure mark. Spot prices, meanwhile, move little following the release of the Bank of Japan (BoJ) April meeting minutes and remain well within the striking distance of the highest level since late April retested the previous day.


The Australian Dollar (AUD) gains momentum on Wednesday, backed by the hawkish hold by the Reserve Bank of Australia (RBA) at its June meeting. The markets have pushed back RBA rate cut expectations and see the start of the easing cycle in 2025, which continues to boost the Aussie. Furthermore, weaker-than-expected Retail Sales prompted the case for US Federal Reserve (Fed) rate cuts later this year, which undermine the Greenback across the board. 


The NZD/USD pair struggles to capitalize on the previous day’s goodish rebound from sub-0.6100 levels, or over a one-week low and attracts some sellers during the Asian session on Wednesday. Spot prices currently trade around the 0.6135 region, down 0.10% for the day, though lack follow-through selling in the wake of a softer tone surrounding the US Dollar (USD).


The USD/CAD pair trades in negative territory for the fourth consecutive day around 1.3715 during the early Asian session on Wednesday. The rise of crude oil prices to the two-month top provides some support to the commodity-linked Loonie. Additionally, weaker Retail Sales prompted traders to focus on the timing of Fed rate cuts again, which capped the upside for the pair.


The USD/CHF pair trades with mild gains near three-month lows around 0.8840 during the early European session on Wednesday. The modest rebound of the pair might be limited as traders raised their bets on the US Federal Reserve (Fed) rate cut this year. US markets will be closed on Wednesday due to Juneteenth National Independence Day. Investors await the Swiss National Bank (SNB) Interest Rate Decision on Thursday, with no change in rate expected. 


Oil prices held steady during trade on Wednesday, as the market weighed concerns over escalating conflict in Europe and the Middle East with demand worries following an unexpected build in U.S. crude inventories.


Gold price is consolidating the previous recovery early Wednesday, lacking a fresh fundamental or technical impetus for further upside. The Juneteenth holiday in the United States is likely to keep liquidity thin around the US Dollar, leaving Gold price sidelined. 

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