US Dollar/Japanese Yen (USD/JPY) Buy: Focus Currency and Technical Analysis (1-Hour Chart) October 14, 2024
Euro/US Dollar (EUR/USD) Sell
The EUR/USD pair is declining around 1.0925, near its lowest level since August 8th. The US CPI for September showed a year-on-year slowdown to 2.4%, while the core CPI rose to 3.3%. The US PPI also exceeded expectations, keeping the market focused on the Fed’s monetary policy. Meanwhile, Germany’s inflation statistics have had little impact, and there is a possibility that the ECB will cut rates by 25 basis points this week, putting pressure on the euro.
British Pound/US Dollar (GBP/USD) Strong Sell
The GBP/USD pair is showing slight movements around 1.3060. Following comments from the Fed Chair, there is an 80% probability of a 25 basis point rate cut at the November meeting. The results of the US CPI and PPI support this outlook. In the UK, GDP increased by 0.2%, and industrial production also showed growth. Attention is focused on the UK labor market data to be released tomorrow.
New Zealand Dollar/US Dollar (NZD/USD) Sell
The NZD/USD pair is trading sideways around 0.6090. While New Zealand’s services sector index has seen a slight increase, retail sales have declined. The drop in China’s CPI and PPI has also impacted the NZD. Last week, the RBNZ cut rates by 50 basis points, and the market is watching for the Fed’s future policy directions.
US Dollar/Japanese Yen (USD/JPY) Buy
The USD/JPY pair is showing slight upward movement, attempting to test 149.30. With the US core CPI rising to 3.3%, there is an 80% likelihood that the Fed will implement a 25 basis point rate cut in November. Tomorrow, Japan’s industrial production data will be released, and Friday’s inflation data will also be closely watched.
Gold/US Dollar (XAU/USD) Buy
Gold is rising around 2660.00. Expectations for a 25 basis point rate cut by the ECB and potential additional rate cuts from the Fed are supporting gold prices. However, the US inflation data has weakened expectations for rapid rate cuts by the Fed. The decline in the Michigan Consumer Sentiment Index and ongoing geopolitical risks are also boosting demand for gold.
