Gold and Euro rise on weak US economic data, increasing hopes for Fed rate cuts.

From Investing.com: 2024-07-04 04:29:00

Gold rose by over 1% yesterday as US economic data showed signs of weakness, increasing hopes for a Federal Reserve interest rate cut. Reports on services and employment, along with an increase in jobless benefits claims, indicated a cooling labor market. IMF Services PMI data came in softer than expected, fueling expectations for rate cuts. The Fed is now likely to cut rates in September, following the release of the NFP report. The market anticipates increased volatility with the NFP release today at 12:30 p.m. UTC.

The Euro gained against the Dollar as US data suggested a slowing economy, leading to expectations of Fed rate cuts. Reports on job creation and services PMI showed signs of weakness in the US economy. Despite expectations of monetary policy easing in the eurozone, the ECB may not cut rates immediately. EUR/USD remains bullish but may see increased volatility during late European trading.

The Canadian Dollar strengthened against the US Dollar on Wednesday due to weaker-than-expected US economic data, raising speculation for Fed rate cuts. Reports on employment and services PMI showed a slowing US economy. The Canadian Dollar also got a boost from rising oil prices. USD/CAD hit a one-month low amidst expectations of a Fed rate cut in September, with investors betting on a stronger Canadian Dollar in the long run.



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