EUR/USD (Euro/US Dollar) Strong Sell
The EUR/USD pair is showing sideways movement around 1.0850. Traders are waiting for new data, with the minutes from the May Federal Reserve meeting being released today. The market expects two 25 basis point rate cuts in the second half of 2024. The inflation situation in the Eurozone is improving, and the ECB might adjust rates in June. Germany’s April Producer Price Index (PPI) was as expected.
GBP/USD (British Pound/US Dollar) Buy
The GBP/USD pair is moving above 1.2700. The market is focusing on the UK’s April inflation statistics, with the Consumer Price Index (CPI) decreasing from 3.2% to 2.3% year-on-year and from 0.6% to 0.3% monthly. This increases the likelihood of a rate cut by the Bank of England in June. In the US, existing home sales data is expected to be released, with a slight increase anticipated.
AUD/USD (Australian Dollar/US Dollar) Sell
The AUD/USD pair is showing sideways movement around 0.6670. Traders are waiting for the Fed minutes, with at least two rate cuts expected in 2024. The minutes from the RBA meeting suggested that inflation risks are rising, indicating a potential rate hike. Business activity data from Australia and the US will be released tomorrow.
USD/JPY (US Dollar/Japanese Yen) Neutral
The USD/JPY pair is rising around 156.35, approaching the high from May 1. As the central banks of the US and Europe signal moves towards rate cuts, the USD has temporarily gained appeal. Japan’s April trade balance showed an unexpected deficit, and both exports and imports were lower than expected. The Fed minutes are expected to confirm the outlook for rate cuts in the second half of 2024.
XAU/USD (Gold/US Dollar) Strong Sell
The XAU/USD pair has fallen from around 2450.00 to around 2410.00. The market is waiting for the Fed minutes, which are expected to heighten the likelihood of a rate cut in September. US existing home sales data will be released, with a slight increase expected. Business activity data will also be released tomorrow.
