GBP/USD: Strong Sell – Focus Currency and Technical Analysis (1-Hour Chart) October 16, 2024
EUR/USD: Sell
The EUR/USD is trading around 1.0890, at its lowest level since August 8. The market is expecting a 25 basis point rate cut at Thursday’s European Central Bank (ECB) meeting, and the release of inflation data from the Eurozone is also in focus. The euro is receiving support from improved industrial production data and sentiment indices from August. Meanwhile, the US NY Fed Manufacturing Index showed a significant decline that fell short of expectations.
GBP/USD: Strong Sell
The GBP/USD is showing a downtrend around 1.3020. The UK’s Consumer Price Index (CPI) fell short of expectations, and the unemployment rate decreased to 4.0%, but wage growth is slowing. In the US, the NY Fed Manufacturing Index showed a significant decline, and attention is also on tomorrow’s retail sales and industrial production data releases.
NZD/USD: Neutral
The NZD/USD is declining around 0.6060, updating its lowest level since August 16. New Zealand’s Consumer Price Index has declined, increasing expectations for further interest rate cuts. Additionally, weak economic indicators from China are prompting investors to adopt a risk-averse stance.
USD/JPY: Buy
The USD/JPY is trading around 149.25, and the dollar is slightly weaker against the yen due to the decline in the NY Fed Manufacturing Index. Japan’s machinery orders for August decreased by 3.4% year-on-year and also declined month-on-month. The market is watching the trends in US economic indicators closely.
XAU/USD: Buy
Gold is rising around 2670.00, supported by expectations of a rate cut from the European Central Bank (ECB). US consumer and producer inflation data has exceeded expectations, slightly reducing the likelihood of a rate cut at the Federal Reserve’s (Fed) November meeting, but a 25 basis point cut is still anticipated.
