EUR/USD (Euro/Dollar) – Strong Buy – Focus Currency and Technical Analysis (1-Hour Chart) November 5, 2024
EUR/USD – Strong Buy
The EUR/USD pair is showing mixed movements around 1.0880. It has updated its high from October 15 but has not yet established itself at this new level, with many investors withdrawing from the market ahead of the results of today’s U.S. presidential election. Some investors are pricing in a victory for Republican candidate Donald Trump, and initial results could significantly impact the market. The Trump administration has indicated a policy of raising tariffs on imports from the EU and China, and the Fed is expected to slow the pace of interest rate cuts. With a 0.25% rate cut almost certain at the Federal Reserve meeting on Thursday, November 7, ECB President Lagarde is also scheduled to speak at 16:30 (GMT+2) today, where further easing measures may be indicated.
GBP/USD – Strong Buy
The GBP/USD pair is showing multidirectional movements around 1.2955. Market activity on U.S. presidential election day is modest, with concerns that the Fed’s pace of cutting borrowing costs may be influenced by the election results. Additionally, the Bank of England meeting is scheduled for Thursday, with a 0.25% rate cut anticipated. Furthermore, retail sales data released by the British Retail Consortium (BRC) fell short of expectations, putting some pressure on the pound.
AUD/USD – Strong Buy
The AUD/USD pair is recovering from the previous day’s bearish movement and showing significant growth. This week’s trading started with an upward gap, supported by the RBA keeping rates at 4.35%. Moreover, Australia’s Consumer Price Index (CPI) rose from 2.6% to 3.0% year-on-year, providing additional support. The results of today’s U.S. presidential election are being closely watched, as they may influence the Fed’s future monetary policy.
USD/JPY – Strong Sell
The USD/JPY pair is showing a correction around 152.36. The uncertain outcome of the U.S. presidential election limits the growth of the dollar, but additional support is expected if Republican candidate Trump wins. Additionally, a Federal Reserve meeting is scheduled for Thursday, where a 0.25% rate cut is predicted. Data from the U.S. labor market released on Friday has also had an impact, especially with non-farm payroll numbers coming in significantly below expectations, putting pressure on the dollar.
XAU/USD – Strong Sell
The XAU/USD pair is fluctuating around 2735.00 with little change. Market activity is subdued until the results of the U.S. presidential election are announced, with indications that Trump may win, leading to expectations that the Fed will continue its monetary easing. Trump has also hinted at a potential 60.0% tariff on Chinese products, drawing market attention.
