EUR/USD (Euro/US Dollar) – Strong Sell
EUR/USD attempted to rise but is now falling, testing 1.0845. Investors are awaiting the release of Germany’s Consumer Price Index (CPI). The monthly CPI is expected to decrease from 0.5% to 0.2%, and the harmonized CPI is also expected to slow from 0.6% to 0.2%. On an annual basis, it may accelerate from 2.4% to 2.7%. If the eurozone inflation rate exceeds expectations, the European Central Bank (ECB) might hold off on a rate cut at its June meeting. The US Personal Consumption Expenditures Price Index (PCE) will be released on Friday, with forecasts indicating no change from the previous month, with monthly growth at 0.3% and annual growth at 2.8%.
GBP/USD (British Pound/US Dollar) – Strong Sell
GBP/USD is trading around 1.2752, adjusting after hitting a new high the previous day. Market participants are closing some positions ahead of the release of the US April Personal Consumption Expenditures Price Index (PCE) on Friday. Personal income and expenditure data will also be released on Friday, with personal income expected to slow from 0.5% to 0.3% and personal expenditure from 0.8% to 0.3%. In the UK, consumer credit statistics will be released, with an increase in lending expected. US Q1 GDP data will be released on Thursday, expected to decline from an annual rate of 1.6% to 1.3%.
AUD/USD (Australian Dollar/US Dollar) – Sell
AUD/USD is nearly flat around 0.6650. Australia’s April retail sales data fell short of expectations, increasing by only 0.1% against an expected 0.2%. US housing price index and business activity index data also produced unexpected results. Today’s focus is on Australia’s April Consumer Price Index (CPI), which showed an acceleration exceeding market expectations at 3.6%.
USD/JPY (US Dollar/Japanese Yen) – Buy
USD/JPY is showing mixed movements, attempting to break through 157.30. Japan’s consumer confidence index fell short of expectations, putting slight pressure on the yen. In the US, the Richmond Fed Manufacturing Index and the Redbook Retail Sales Index are scheduled for release. The Federal Reserve’s Beige Book will also be published. US Q1 GDP data will be released on Thursday, followed by inflation data from both Japan and the US on Friday.
XAU/USD (Gold/US Dollar) – Buy
Gold/USD is showing mixed movements around 2360.00. Today’s focus is on Germany’s Consumer Price Index (CPI), expected to decrease monthly from 0.5% to 0.2% and increase annually in the harmonized CPI from 2.4% to 2.7%. Inflation data from Japan, the US, and the eurozone will be released on Friday, with the US Personal Consumption Expenditures Price Index (PCE) expected to grow by 0.3% monthly and 2.8% annually. The European Central Bank (ECB) may take a cautious stance as the eurozone core CPI is projected to rise from 2.7% to 2.8%.
