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02.07.2024 Market Report


EUR/USD clipped into a fresh multi-week high above 1.0770 on Monday before getting forced back down by a broad-market reversal in investor sentiment. Bullish momentum was cut short after US activity figures flashed warning signs of a steepening economic downturn. Investors will be buckling down for the wait to key economic figures on both sides of the Atlantic throughout the week, culminating in a fresh print of US Nonfarm Payrolls (NFP) slated for Friday.


The GBP/USD pair extends its sideways consolidative price move during the Asian session on Tuesday and remains confined in a familiar range held over the past two weeks or so. Spot prices currently trade around the 1.2655-1.2645 region amid the anxiety surrounding the upcoming UK general elections on Thursday.


USD/JPY extends upside above 161.50 early Tuesday. The renewed US Dollar uptick provides some support to the pair. However, expectations about Japanese FX market intervention to prevent the Yen depreciation could cap the gains in the major. US data, Powell’s speech awaited. 


AUD/USD is paring losses to retest 0.6650 in Asian trading on Tuesday after the RBA’s June policy meeting Minutes showed that the board left the door ajar for a rate hike if required. The pair’s upside could be limited due to the US Dollar strength ahead of Powell. 


The NZD/USD pair comes under some renewed selling pressure during the Asian session on Tuesday and momentarily slides below mid-0.6000s for the first time since mid-May. Spot prices now seem vulnerable to prolong a three-week-old downtrend amid some follow-through US Dollar (USD) buying.


The USD/CAD pair gains ground near 1.3735 during the early Asian session on Tuesday. The rebound of the pair is bolstered by the stronger US Dollar (USD) and higher US Treasury bond yields. Nonetheless, the upside of the pair might be limited as supply fears of crude oil in the second half of the year might lift the commodity-linked Loonie. The speech by Federal Reserve (Fed) Chairman Jerome Powell will be in the spotlight on Tuesday. 


The USD/CHF pair gains traction near 0.9040, the highest level since May 31 during the early European session on Tuesday. The strength of the Greenback and higher US bond yields provide some support for the pair. Investors await the speech by Federal Reserve (Fed) Chairman Jerome Powell on Tuesday for fresh impetus. 


Oil prices climbed on Monday, supported by forecasts of a supply deficit stemming from peak summer fuel consumption and OPEC+ cuts in the third quarter, although global economic headwinds and rising non-OPEC+ output capped gains.


Gold price struggles to capitalize on Monday’s gains amid some follow-through USD buying. Rising bets for a September Fed rate cut move should help limit the downside for the metal. Fed Chair Powell’s speech eyed for some impetus ahead of FOMC minutes on Wednesday.

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