EURUSD
- EUR/USD registered a 0.18% increase, reaching 1.0717, reflecting the impact of the hawkish stance adopted by European Central Bank officials regarding future interest rates.
- Dutch central bank chief, Klaas Knot, highlighted the need for further tightening to address inflation, expressing concerns that current measures may not be sufficient.
- Ongoing economic challenges persist in the eurozone's recovery from last year's surging energy prices, indicating the continued difficulties faced by the region.
- The U.S. dollar experienced a slight decline in early European trade, although it remained near its recent two-month high, with traders eagerly awaiting the upcoming policy-setting meeting of the U.S. Federal Reserve.
- Market participants are closely monitoring these developments and the decisions made by central banks, which are expected to have a significant impact on the future direction of EUR/USD.
| SMA (20) | Falling |  |
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| RSI (14) | Neutral | ||
| MACD (12, 26, 9) | Neutral |
Closing statement: The EUR/USD pair saw a modest rise as European Central Bank officials maintained their hawkish stance on future interest rates, acknowledging persistent inflationary pressures. The eurozone grapples with economic challenges stemming from the previous surge in energy prices, while traders closely observe the upcoming policy-setting meeting of the Federal Reserve, anticipating its implications for the currency pair. Market participants will continue to monitor these factors and the decisions made by central banks, which are likely to shape the trajectory of EUR/USD in the coming days.
GBPUSD
- GBP/USD recorded a 0.19% increase, reaching 1.2460, while trading within a narrow range as traders eagerly anticipate the release of upcoming jobs and wages data.
- The forthcoming data release poses a potential negative event risk for sterling, as slower wage growth could undermine the Bank of England's tightening expectations, which are currently factored into money markets.
- The Dollar Index, which measures the dollar against six other currencies, experienced a 0.1% decline, trading at 104.002, just below its two-month peak of 104.70 observed last week.
- Market expectations indicate that the U.S. central bank is likely to pause its year-long interest rate hiking cycle in the upcoming week. However, there is growing speculation that this pause could be temporary, with the possibility of another rate increase later in the year, potentially in July.
| SMA (20) | Slightly Falling | |
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| RSI (14) | Neutral | ||
| MACD (12, 26, 9) | Neutral |
Closing statement: GBP/USD saw a modest increase as traders awaited the release of key jobs and wages data. The outcome of this data could have a significant impact on sterling, particularly in relation to the Bank of England's tightening expectations. Meanwhile, the U.S. dollar experienced a slight decline, and market expectations suggest a pause in the Federal Reserve's interest rate hikes, although the possibility of future rate increases still remains. Traders will closely monitor these developments as they continue to assess the direction of GBP/USD in the coming days.
GOLD
- XAU/USD, the pair representing gold prices, remained slightly above two-month lows on Thursday, exhibiting a period of consolidation as investors eagerly awaited an upcoming Federal Reserve meeting.
- Gold has been trading within a narrow range for nearly three weeks, facing downward pressure from a stronger dollar and rising treasury yields, as market participants speculate about the Federal Reserve's stance on future interest rate hikes.
- Recent surprise rate increases by the Bank of Canada and the Reserve Bank of Australia, both citing persistent inflationary pressures, have heightened expectations that U.S. interest rates might also see further upward adjustments.
- The Federal Reserve will consider the latest consumer price data before making its decision on interest rates. Should there be an upward movement from the 4.9% annual figure reported in May, it would likely solidify the possibility of another rate hike.
Closing statement: Gold prices remained near two-month lows, exhibiting a period of consolidation as market participants awaited the upcoming Federal Reserve meeting. The precious metal has faced downward pressure from a stronger dollar and rising treasury yields. Recent rate increases by other central banks, coupled with concerns over inflation, have raised expectations for potential further interest rate hikes. The Federal Reserve will closely monitor consumer price data as it determines its next move. Traders will closely watch these developments as they assess the outlook for XAU/USD in the coming days.
CRUDE OIL
- Crude oil prices declined on Thursday, primarily driven by concerns over weakening demand resulting from the global economic slowdown, which outweighed the anticipated supply reduction due to Saudi Arabia's announced output cuts.
- Both brent and crude oil experienced approximately 1% gains on Wednesday following Saudi Arabia's commitment to significant production cuts. However, the price increase remained limited due to the impact of rising U.S. fuel inventories and disappointing economic data from China.
- The larger-than-expected build in U.S. fuel inventories, reported on Wednesday, raised concerns about demand from the world's leading oil consumer. The growth in travel during the Memorial Day weekend was expected to support demand, but this factor is now uncertain.
- In a surprising turn, U.S. crude inventories declined by 451,000 barrels during the week, as refiners increased fuel production to the highest level since 2019, coinciding with the Memorial Day holiday.
| SMA (20) | Neutral | |
| RSI (14) | Neutral | |
| MACD (12, 26, 9) | Slightly Rising |
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Closing statement: Crude oil prices faced downward pressure as worries surrounding weakened global demand overshadowed the potential supply decrease resulting from Saudi Arabia's pledged output cuts. While gains were observed on the back of those cuts and declining U.S. crude inventories, rising fuel stocks in the United States and lackluster economic data from China limited the overall price increase. Market participants remain cautious due to uncertainties surrounding demand, particularly from the world's top oil consumer. Traders will closely monitor these dynamics and upcoming data releases to gauge the direction of crude oil prices in the near term.
DAX
- European stock markets experienced a slight decline on Thursday as investors awaited the release of eurozone growth data and upcoming central bank meetings, seeking guidance for market direction.
- The DAX index in Germany traded 0.1% lower, the CAC 40 in France fell 0.1%, while the FTSE 100 in the U.K. displayed minimal movement.
- The anticipated eurozone GDP data is expected to reveal stagnation in the region during the first quarter of this year, with a projected annual growth rate of only 1.2%.
- The initial GDP release for the Eurozone indicated no growth in the first three months of the year, representing a significant slowdown from the previous quarter's 1.8% growth.
- Market participants will closely analyze the released growth data and closely monitor the central bank meetings scheduled for the coming week to assess the potential impact on European stock markets.
| SMA (20) | Neutral | |
| RSI (14) | Slightly Falling | |
| MACD (12, 26, 9) | Neutral |
Closing statement: European stock markets recorded a marginal decline as investors awaited the release of eurozone growth data, which is projected to indicate stagnation in the region's economy during the first quarter. The initial GDP figures already revealed a notable slowdown, signaling the challenges faced by the Eurozone. Attention now turns to the upcoming central bank meetings, with market participants keen to gauge the potential implications for European stock markets. The economic data and central bank decisions will continue to shape market sentiment in the days ahead.