EUR/USD: Strong Buy – Slight Decline, Monitor Economic Statistics in Eurozone and the US The EUR/USD pair shows uncertain downward movement, attempting to break down below 1.0635. Eurozone construction output declined by 0.4% annually, while initial US jobless claims remained unchanged at 212,000, and the Philadelphia Fed Manufacturing Index unexpectedly rose by 15.5 points. Today’s focus is on Germany’s producer price index, which increased by 0.2% monthly, easing the annual decline from -4.1% to -2.9%.
GBP/USD: Buy – Affected by UK Retail Sales Decline The GBP/USD pair is testing the breakdown at 1.2415. UK consumer price index slowed to 3.2% annually, core CPI decreased to 4.2%, but retail sales remained at 0.0% against expectations. Additionally, US existing home sales decreased by 4.3% to 4.19 million, less than expected.
AUD/USD: Buy – Downward Movement While Keeping an Eye on Australian Employment Change The AUD/USD pair tests the breakdown at 0.6400, as Australian employment change showed a decrease below expectations, although the NAB business confidence index improved. Meanwhile, the US Philadelphia Fed Manufacturing Index significantly exceeded expectations.
USD/JPY: Buy – Uncertain Decline Amid Japan’s Inflation Data The USD/JPY pair hovers around 154.25, as Japan’s consumer price index slowed to 2.7% as expected. Markets are cautious of Bank of Japan intervention, keeping the dollar movement relatively limited.
XAU/USD: Strong Sell – Showing Range-Bound Behavior The XAU/USD pair moves near 2380.00, supported by expectations of interest rate cuts by major central banks. Particularly, the possibility of the ECB cutting rates in June has increased, while the Federal Reserve maintains a more cautious stance. Yesterday’s unexpected rise in the Philadelphia Fed Manufacturing Index and the stability of jobless claims provided some support to the dollar.
