EUR/USD – Strong Sell – Focus Currencies and Technical Analysis (1-Hour Chart) August 30, 2024
EUR/USD – Strong Sell
The EUR/USD pair is showing mixed movements around 1.0730 and is poised to end the week with a slight decline. The previous day, Germany’s inflation statistics came in below expectations, with the Consumer Price Index (CPI) slowing from 2.3% to 1.9% year-on-year. This weak inflation data has dampened expectations for a rate hike by the European Central Bank (ECB), leading to a softer euro. On the other hand, the Eurozone Business Sentiment Index unexpectedly improved, providing some support for the euro. In the U.S., Q2 GDP growth was revised upward from 2.8% to 3.0%, reducing the likelihood of further easing by the Federal Reserve.
GBP/USD – Strong Sell
The GBP/USD pair is trading almost flat around 1.3160. Market activity is subdued, with investors waiting for the release of the U.S. Personal Consumption Expenditures (PCE) Price Index. This data is closely watched as it significantly impacts the Federal Reserve’s monetary policy decisions. In the UK, July consumer credit data fell short of expectations, but an increase in personal lending provided some support for the pound.
AUD/USD – Neutral
The AUD/USD pair is showing mixed movements around 0.6800. Market participants are holding off on new long positions, and weaker-than-expected Australian retail sales have capped the Aussie dollar’s upside. Attention is now on the upcoming release of the U.S. PCE Price Index and Consumer Confidence Index, which could impact the market.
USD/JPY – Strong Buy
The USD/JPY pair is experiencing mixed trading around 144.80. Although Japan’s inflation data has risen, market activity remains subdued. Tokyo’s CPI increased from 2.2% to 2.6%, raising the likelihood of further monetary tightening by the Bank of Japan. The release of the U.S. PCE Price Index is also being closely watched, as it could influence the Federal Reserve’s policy decisions in September.
XAU/USD (Gold) – Sell
The XAU/USD pair is slightly declining around 2510.00. Market activity is low, with investors awaiting the release of inflation data from Europe and the U.S. If Eurozone inflation data falls short of expectations, it could increase pressure on the ECB to ease, potentially supporting gold prices. The release of the U.S. PCE Price Index is also being closely monitored.
