Market Insight 27-06-2024

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  • Market Insight 27-06-2024


The US dollar climbed to a six-week high during yesterday’s trading session due to safe-haven demand and quarter-end flows. The Japanese yen continued its decline, reaching a 38-year low against the dollar, disregarding concerns about potential Central Bank intervention. Sterling fell after the Confederation of British Industry reported significantly weaker-than-expected retail sales and position squaring ahead of next week’s UK General Election. The euro weakened further ahead of Sunday’s first round of election voting, as the yield gap between German and French bonds widened. Meanwhile, the Australian dollar received a boost from stronger-than-expected inflation data.


  • ECB’s Elderson

Market Insight:

With limited macroeconomic data releases so far this week, markets are keenly anticipating the latest US inflation data set for release on Friday for more indications of when or if the Federal Reserve might cut interest rates this year. Broader sentiment has soured in advance of the data due to fears of a global economic slowdown and concerns over the forthcoming French elections. Additionally, traders will closely monitor the first debate of the 2024 presidential election campaign between Biden and Trump scheduled for this evening. Recent opinion polls indicate that Democrats and Republicans are in a closely contested race, likely to be decided by votes in a few crucial swing states.