Gold (XAU/USD) Strong Buy: Currency Analysis and Technical Outlook (1-Hour Chart) – September 24, 2024
EUR/USD – Strong Buy
The EUR/USD pair is attempting to break above 1.1115 after a correction following the previous day’s decline. Data from Germany’s Ifo Institute shows that the Business Climate Index has decreased to 85.4 points, falling short of expectations. Additionally, the S&P Global September Eurozone Manufacturing PMI dropped from 45.8 to 44.8, while the Services PMI fell from 52.9 to 50.5. Similar declines in manufacturing and services PMIs in Germany are contributing to the euro’s weakness.
GBP/USD – Buy
The GBP/USD pair continues its upward trend, breaking above 1.3360 and reaching its highest level since March 2022. The Fed’s 50 basis point rate cut last week has influenced expectations that the Bank of England will also pursue monetary easing in the future. Although the UK’s September Manufacturing PMI decreased from 52.5 to 51.5 and Services PMI from 53.7 to 52.8, the pound remains strong.
NZD/USD – Strong Buy
The NZD/USD pair is reinforcing its short-term bullish trend, attempting to break above 0.6280. The NZD/USD is supported by the weaker dollar resulting from the Fed’s rate cut. However, New Zealand’s exports fell to 4.97 billion NZD in August while imports rose to 7.17 billion NZD, leading to an expanded trade deficit.
USD/JPY – Strong Buy
The USD/JPY pair is rising and trying to break above 144.00. Japan’s Manufacturing PMI for September was revised down to 49.6 points, while the U.S. Manufacturing PMI also declined from 47.9 to 47.0 points. The Fed’s rate cuts continue to pressure the dollar.
XAU/USD – Strong Buy
The XAU/USD pair is actively rising and has reached new highs around 2640.00. The Fed’s rate cuts have led to expectations for further monetary easing, supporting the increase in gold prices. Additionally, geopolitical instability and the potential expansion of military conflicts are increasing demand for gold as a safe-haven asset.
