EUR/USD (Euro/US Dollar) – Buy The EUR/USD pair is recovering from a two-day decline and is retesting the highs from March 21. It is currently attempting to break through 1.0890. Today’s focus is on the European Central Bank’s (ECB) rate decision, with a 25 basis point rate cut expected. Additionally, the Eurozone’s April retail sales data will be released, anticipated to show a 0.3% monthly decrease and a 0.1% annual decrease. In the US, initial jobless claims and tomorrow’s employment report are key, with private sector employment falling short of expectations.
GBP/USD (British Pound/US Dollar) – Sell The GBP/USD pair is attempting to break through 1.2800 and is approaching the high from March 14, which was updated earlier this week. The focus is on the upcoming US employment report, with non-farm payrolls expected to increase. Additionally, the US services PMI improved more than expected, and the UK services PMI is also performing well.
AUD/USD (Australian Dollar/US Dollar) – Strong Sell The AUD/USD pair is attempting to break through 0.6660. Despite Australia’s GDP falling short of expectations, the trade balance improved due to reduced exports and imports. The US employment report this weekend is expected to shed light on the prospects for a rate cut by the US Federal Reserve later this year.
USD/JPY (US Dollar/Japanese Yen) – Strong Buy The USD/JPY pair is attempting to break through 155.80. The US services PMI has improved, and private sector employment fell short of expectations. The Bank of Canada’s rate cut also supports the US dollar. Meanwhile, Japan’s labor cash earnings exceeded expectations, but the Bank of Japan is not expected to tighten monetary policy further.
XAU/USD (Gold/US Dollar) – Sell The XAU/USD pair is attempting to break through 2370.00. The improvement in the US services PMI and the decline in private sector employment have reduced the likelihood of a rate cut in the US. Tomorrow’s US employment report is anticipated to show an increase in non-farm payrolls. Additionally, the Bank of Canada has cut rates, and the ECB is expected to announce a rate cut at today’s meeting.
