Euro/US Dollar (EUR/USD) Strong Sell: Focus Currency and Technical Analysis (1-Hour Chart) October 2, 2024
Euro/US Dollar (EUR/USD) Strong Sell
The Euro/US Dollar is showing mixed movements around 1.1065. The inflation data from the Eurozone came in below expectations, with the Consumer Price Index (CPI) for September decreasing from 2.2% year-on-year to 1.8%. This has increased the likelihood that the European Central Bank (ECB) will announce additional monetary easing in upcoming meetings. On the other hand, U.S. economic indicators are mixed; while the JOLTS employment data exceeded expectations, the ISM Manufacturing PMI fell short of market predictions. Federal Reserve Chair Jerome Powell indicated a cautious pace of interest rate cuts at 25 basis points each, which has strengthened the dollar.
British Pound/US Dollar (GBP/USD) Strong Sell
The British Pound/US Dollar is showing mixed movements around 1.3275. The previous day’s decline in the pound was a reaction to comments from Federal Reserve Chair Powell. He suggested that future interest rate cuts would be around 25 basis points each. According to the Chicago Mercantile Exchange (CME) FedWatch tool, the likelihood of a 50 basis point cut in November has decreased to 35.4%. Investors are focused on upcoming labor market data and the minutes from the Bank of England’s monetary policy committee meeting.
Australian Dollar/US Dollar (AUD/USD) Buy
The Australian Dollar/US Dollar is showing mixed movements around 0.6884 and is showing signs of strengthening again after yesterday’s uncertain decline. Australia’s retail sales for August increased by 0.7%, exceeding expectations and supporting the Aussie. However, building permits fell short of forecasts. Chair Powell’s comments indicated that future rate cuts may be limited to 25 basis points, which is a strengthening factor for the U.S. dollar.
US Dollar/Japanese Yen (USD/JPY) Buy
The US Dollar/Japanese Yen is attempting to break out again around 143.80. Fed Chair Powell’s indication of cautious monetary easing is affecting investor expectations for rate cuts. Japan’s Consumer Price Index (CPI) slowed in September, and there is no indication of increased inflation risk, suggesting that the Bank of Japan is unlikely to ease its monetary policy. Attention is on today’s ADP private employment data release in the U.S.
Gold (XAU/USD) Sell
XAU/USD is trading around 2655.00 as it awaits new developments. Fed Chair Powell’s dismissal of a 50 basis point rate cut and his recommendation for a 25 basis point cut are suppressing gold prices. Additionally, rising tensions between Israel and Iran in the Middle East are contributing to geopolitical risks that support gold prices.
