GBP/USD: Strong Buy – Currency Focus and Technical Analysis (1-Hour Chart) – October 29, 2024

GBP/USD: Strong Buy – Currency Focus and Technical Analysis (1-Hour Chart) – October 29, 2024

EUR/USD: Neutral

The EUR/USD is slightly down, exploring a potential break at 1.0805. Germany’s consumer confidence index improved from -21.0 to -18.3, exceeding market expectations. Today, the U.S. will release the housing price index and JOLTS job openings, followed by employment statistics this weekend. An ADP employment report is scheduled for Wednesday, with job declines anticipated. The Eurozone’s Q3 GDP will be reported tomorrow, expected to grow at an annual rate of 0.8%.

GBP/USD: Strong Buy

The GBP/USD is trading around 1.2965. The UK’s retail price index worsened from -0.6% to -0.8%, indicating lower inflation risks. Consumer lending data is set to be released today. Despite UK business indicators falling short of expectations, the U.S. will report the ADP employment data and GDP on Wednesday, with GDP growth expected to maintain at 3.0% and potential declines in non-farm employment statistics.

NZD/USD: Buy

The NZD/USD is testing the 0.5970 level while declining. The Reserve Bank of New Zealand (RBNZ) and the Federal Reserve’s next meetings are scheduled for November, with a 50 basis point rate cut anticipated from the RBNZ. In contrast, the U.S. core personal consumption expenditures price index is expected to rise by 0.3% in September, with the Fed considering a 25 basis point rate cut. The upcoming U.S. employment report may show a significant drop in non-farm employment and a slowdown in monthly average wage growth.

USD/JPY: Buy

The USD/JPY is testing the 152.90 level while experiencing declines. Japan’s unemployment rate improved to 2.4% in September, and job offers have increased, but inflation uncertainty remains a significant challenge for the Bank of Japan’s monetary policy. Tokyo’s CPI has slowed, but core CPI excluding food and energy has accelerated. Upcoming political uncertainties in Japan may pressure the yen. Industrial production and retail sales data for Japan will be released on Thursday.

XAU/USD: Strong Buy

Gold prices are resuming upward movement around the 2750.00 mark due to increasing demand amid heightened market uncertainty. With predictions of Donald Trump’s victory in the November 5 U.S. presidential election, this may provide support for the dollar. Additionally, the Fed is expected to implement a 25 basis point rate cut in November, with the U.S. employment report also being closely monitored this week.