Pound/US Dollar (GBP/USD) Strong Sell: Focus Currency and Technical Analysis (1-Hour Chart) October 7, 2024
Euro/US Dollar (EUR/USD) Buy
The EUR/USD pair is currently trading around 1.0970, marking its lowest level since August 15th. Last week’s stronger-than-expected US employment data diminished the likelihood of a 50 basis point rate cut by the Federal Reserve (Fed) in November, providing support for the dollar. Non-farm payrolls significantly exceeded expectations, reaching 254,000, against a forecast of 140,000. Moving forward, attention will be on retail sales and manufacturing orders in Germany, which could impact the euro’s direction.
Pound/US Dollar (GBP/USD) Strong Sell
The GBP/USD pair is hovering around 1.3120, attempting to adjust from last week’s decline. Fed Chair Jerome Powell’s view against aggressive rate cuts has slightly reduced expectations for a rate decrease in November, supporting the dollar. Meanwhile, the UK’s September construction PMI rose from 53.6 to 57.2, surpassing expectations, which provides some support for the pound.
New Zealand Dollar/US Dollar (NZD/USD) Strong Sell
The NZD/USD pair is attempting to break above the 0.6160 level after last week’s decline. The strong US employment data has diminished expectations for significant rate cuts by the Fed, strengthening the dollar. This week, the Reserve Bank of New Zealand (RBNZ) is expected to cut rates by 50 basis points, although there’s a possibility of limiting it to a 25 basis point cut, leading to expectations of a cautious monetary policy.
US Dollar/Japanese Yen (USD/JPY) Strong Buy
The USD/JPY pair is trading around 148.50, showing mixed movements. Last week’s positive US employment data continues to support the dollar. However, Japan’s leading and coincident economic indexes fell short of expectations, putting some pressure on the yen. This week, labor market data from Japan is set to be released, with expectations of a decrease in total cash earnings.
Gold/US Dollar (XAU/USD) Strong Buy
The XAU/USD pair is trading around 2640.00, continuing its uncertain movements. The US employment data has slightly reduced the buying impetus for gold due to the decreased likelihood of rapid monetary easing by the Fed. On the other hand, escalating tensions in the Middle East provide some support for gold as a safe-haven asset, with ongoing conflicts in Israel and the surrounding region affecting market sentiment as a geopolitical risk.
