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08.07.2024 Market Report


EUR/USD is under pressure below 1.0850 early Monday, dented by the French election results which suggest a hung parliament and renewed fiscal concerns. A broad US Dollar rebound also weighs on the pair. French political updates and EU Sentix data eyed. 


GBP/USD keeps its range at around 1.2800 in early European trading on Monday. The US Dollar recovery drags the pair lower while traders remain wary after the UK elections and ahead of Powell’s testimony and US CPI data due later this week. 


The Japanese Yen (JPY) extends its gains for the third successive session on Monday. The USD/JPY pair loses ground as US Dollar (USD) struggles following weaker-than-expected US employment growth data released on Friday.


The Australian Dollar (AUD) appreciates despite improved risk aversion on Monday. The AUD receives support as persistent high inflation, stronger Retail Sales, and Services PMI prompt the Reserve Bank of Australia (RBA) to delay potential rate cuts. However, the renewed demand for the US Dollar (USD) puts pressure on the AUD/USD pair.


The NZD/USD pair refreshes a three-week high near 0.6150 in Monday’s Asian session. The Kiwi pair extends its winning streak for the fifth trading session as a debate over the Federal Reserve (Fed) to begin reducing interest rates from the September meeting has heated up after the United States (US) Nonfarm Payrolls (NFP) report for June pointed to normalization of labor market strength.


USD/CAD traces back its recent gains, trading around 1.3630 during the Asian session on Monday. This decline is attributed to the lower US Dollar (USD) following weaker-than-expected US employment growth data released on Friday. This has increased the probability of the Federal Reserve’s (Fed) interest rate cuts sooner rather than later.


The USD/CHF pair extends its losing streak for the fourth trading day on Monday. The Swiss Franc asset stays below the psychological figure of 0.9000 as the US Dollar’s (USD) outlook appears to be vulnerable due to growing speculation that the Federal Reserve (Fed) will pivot to policy normalization from the September meeting.


Oil prices dipped on Monday after rising for four weeks, as the prospect of a ceasefire deal in Gaza eased geopolitical tensions in the Middle East, while investors assessed potential disruption to U.S. energy supplies from Tropical Storm Beryl.


Gold price attracts some sellers below the $2,400 barrier on Monday. Yellow metal loses traction as China’s Central Bank has stopped buying for the second month in June. 

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