Focus Currencies and Technical Analysis (1-Hour Chart) August 28, 2024
EUR/USD – Strong Sell
The EUR/USD pair is slightly declining around 1.1150, with restrained trading. Germany’s GDP data showed a 0.3% annual increase and a 0.1% quarterly decrease, supporting the European Central Bank’s (ECB) continued monetary easing. Consumer confidence also deteriorated, with the September Gfk Consumer Confidence Index falling short of expectations. Later this week, Germany’s final August inflation data and the Eurozone Business Sentiment Index will be released, along with U.S. GDP and unemployment claims.
GBP/USD – Sell
The GBP/USD pair is declining at 1.3240, retreating from its March highs. While expectations for a U.S. Federal Reserve rate cut are rising, putting pressure on the dollar, there is still uncertainty about the extent of the Fed’s rate cut. Bank of England Governor Andrew Bailey acknowledged the benefits of monetary easing but remained cautious about inflation risks. On Friday, UK consumer credit data and the U.S. Personal Consumption Expenditures Price Index will be released, which could impact the market.
NZD/USD – Sell
The NZD/USD pair is showing uncertain movements around 0.6245. As expectations for a Fed rate cut grow, investors are focusing on New Zealand’s retail sales, which fell short of expectations. On Friday, New Zealand’s Consumer Confidence Index and building permit data will be released, along with the U.S. Personal Consumption Expenditures Price Index.
USD/JPY – Neutral
The USD/JPY pair is showing modest growth around 144.40, but trading activity is subdued. Despite rising expectations for a Fed rate cut, the dollar is not under significant pressure. The Bank of Japan’s “hawkish” stance remains strong, but concerns about inflation stability persist. On Friday, the U.S. Personal Consumption Expenditures Price Index, along with Japan’s industrial production and retail sales data, will be released.
XAU/USD (Gold) – Sell
The XAU/USD pair has retreated from its August 20 highs and is testing the support level at 2500.00. While expectations for a Fed rate cut are supporting gold prices, U.S. macroeconomic indicators such as the increase in durable goods orders and the decline in the housing price index are also in focus. On Friday, the U.S. Personal Consumption Expenditures Price Index will be released, which could impact the market.
