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26.06.2024 Market Report


EUR/USD is trading near 1.0700, on the back foot early Wednesday. The pair is undermined by persistent US Dollar strength on a cautious mood, hawkish Fed expectations and higher US Treasury bond yields. Mid-tier US data is next in focus. 


GBP/USD holds below 1.2700, trading sideways for the second straight day on Wednesday. Divergent Fed-BoE policy outlooks and pre-UK election anxiety keep the pair in a familiar range. Attention turns to the mid-tier US data, as the UK calendar is data-dry. 


The USD/JPY pair oscillates in a narrow trading range during the Asian session on Wednesday and is currently placed, around the 159.70-159.75 region, or just below a nearly two-month peak touched earlier this week. The upside, meanwhile, remains capped amid fears that Japanese authorities or the Bank of Japan (BoJ) might intervene in the markets to prop up the domestic currency. 


The Australian Dollar (AUD) gains ground after releasing May’s higher-than-expected Monthly Consumer Price Index (CPI). The persistently high inflation is a roadblock to the Reserve Bank of Australia’s (RBA) possible rate cuts, potentially supporting the Aussie Dollar and underpinning the AUD/USD pair.


NZD/USD extends its losses for the second successive session, trading around 0.6110 during the Asian session on Wednesday. The New Zealand Dollar (NZD) struggles possibly due to risk aversion ahead of ANZ – Roy Morgan Consumer Confidence for June due and US Gross Domestic Product (GDP) for the first quarter (Q1) are set to be released on Thursday. Furthermore, the US Personal Consumption Expenditure (PCE) Price Index will be eyed on Friday.


The USD/CAD pair struggles to capitalize on the previous day’s late rebound from the 1.3620-1.3615 region, or a three-week low and remains on the defensive during the Asian session on Wednesday. Spot prices currently trade around mid-1.3600s, nearly unchanged for the day, and the mixed fundamental backdrop warrants some caution for aggressive traders ahead of the key US macro data.


The USD/CHF pair weakens around 0.8925 on Wednesday during the early Asian trading hours. The downtick of the pair is backed by a weaker US Dollar (USD) broadly. Investors will keep an eye on the Swiss SNB Quarterly Bulletin for the second quarter (Q2) on Wednesday. On the US docket, the final reading of the US Gross Domestic Product (GDP) for Q1 on Thursday, and the May Personal Consumption Expenditure (PCE) Price Index for May on Friday will be the highlights this week.


Oil prices inched up during Asian trade on Wednesday despite a surprise jump in U.S. stockpiles, driven by geopolitical risks from the Middle East conflict and forecasts of an eventual inventory drawdown during the third quarter peak demand season.


Gold price is building on Tuesday’s decline, hitting a fresh weekly low near $2,310 in Asian trading on Wednesday. The sustained US Dollar strength alongside firmer US Treasury bond yields fuels additional downside in Gold price, as traders brace for a data-light US economic calendar later on Wednesday.   

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