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21.06.2024 Market Report


EUR/USD fell back to familiar technical levels on Thursday, clunking down to the 1.0700 handle after a miss in US economic figures bolstered the Greenback. Friday markets loom ahead with a packed data docket, with Purchasing Managers Index figures for both the EU and the US on the cards.


GBP/USD struggles to register any meaningful recovery and hangs near a one-month trough. Bets for an early rate cut by the BoE undermine the GBP and act as a headwind for the major. September Fed rate cut bets cap the upside for the USD and help limit losses for spot prices.


The USD/JPY pair clings to gains near 159.00 in Friday’s Asian session after a winning spell for six trading sessions. The asset is expected to extend its upside towards a multi-year high near 160.00 as investors expect that the Bank of Japan (BoJ) could further delay plans of reducing the amount of bond-buying beyond the July meeting.


The Australian Dollar (AUD) trades with mild gains in Thursday’s early European session. The Aussie edges higher after the recent Australian Judo Bank PMI report suggested that business activity is still growing despite a slower pace than in March and April. Furthermore, the Reserve Bank of Australia’s (RBA) hawkish hold on Tuesday is likely to underpin the AUD in the near term. 


The NZD/USD pair gains traction near 0.6145 during the early Asian session on Friday. The pair edges higher on the back of stronger-than-expected New Zealand GDP in the first quarter and the decline of the US Dollar (USD).


The USD/CAD pair remains under some selling pressure around 1.3690 during the early Asian session on Friday. The pair edges lower despite the rise of the USD Index (DXY) to four-day highs near 105.70. The rally of crude oil prices continues to underpin the commodity-linked Loonie. On Friday, the advanced US S&P Global Manufacturing and Services PMI will be in the stoplight. 


The Swiss Franc extended its losses on Friday after the Swiss National Bank (SNB) decided to cut rates for the second time in the year, lowering rates from 1.50% to 1.25% during the European session. The USD/CHF trades at 0.8911, up 0.83%.


Crude oil futures were little changed on Friday but were set to rise for a second week amid signs of improving demand and falling oil and fuel inventories in the U.S., the world’s biggest oil consumer.


Gold price is consolidating weekly gains near the highest level in nine days at $2,366, despite the US Dollar sticking to its recovery momentum alongside the US Treasury bond yields. Gold price looks forward to the preliminary business PMI data from both sides of the Atlantic for a fresh trading impetus. 

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