Gold/US Dollar (XAU/USD) – Strong Buy – Key Currency Pair & Technical Analysis (1-Hour Chart) on November 7, 2024
EUR/USD – Strong Buy
EUR/USD has shown a recovery after the previous day’s sharp decline and is attempting to break above 1.0740. With Republican Donald Trump winning the presidential election, expectations are high that he will implement strict trade policies against the EU and China, potentially strengthening the USD. Meanwhile, the Federal Reserve (FRB) is set to announce a 25-basis-point rate cut today, with the possibility of another cut in December. In contrast, the European Central Bank (ECB) may accelerate monetary easing, adding pressure on the euro. Germany’s factory orders rose by 4.2%, exceeding expectations, but the Eurozone Producer Price Index (PPI) dropped by 3.4% year-over-year.
GBP/USD – Neutral
GBP/USD is hovering around 1.2927, influenced by the strengthening USD following Trump’s victory and expectations of rate cuts from both the Bank of England (BoE) and the FRB. Both central banks are projected to lower rates by 25 basis points, with the BoE potentially reducing its rate to 4.75%. UK inflation decreased to 1.7% in September amid recessionary pressures, while the construction activity index fell from 57.2 to 54.3.
AUD/USD – Strong Buy
AUD/USD is recovering, testing the 0.6620 level as selling pressure on the USD builds. While FRB rate cut expectations weigh on the USD, the Reserve Bank of Australia (RBA) has kept its rate steady at 4.35%, enhancing the appeal of the AUD. Trade statistics between Australia and China are also in focus. Australian exports and imports have declined, while China’s exports grew by 12.7%, beating forecasts.
USD/JPY – Sell
USD/JPY is testing support around 154.00 as expectations of a Fed rate cut apply downward pressure. The market anticipates a 25-basis-point cut from the FRB, with a potential additional cut in December. Japan’s labor cash earnings have remained steady, unlikely to impact Bank of Japan policies, and S&P Global’s manufacturing PMI showed improvement, providing slight support to the yen.
XAU/USD – Strong Buy
Gold is trading near 2655.00 with mixed movement, with USD support driven by expectations surrounding Trump’s trade policies. The U.S. plans to impose protective tariffs on imports from China and the EU, while the FRB is likely to continue its gradual rate cuts. Today’s FRB decision anticipates a 25-basis-point rate cut, and the release of U.S. initial jobless claims is also under watch.
