GBP/USD: Strong Buy – Focus Currency and Technical Analysis (1-Hour Chart) October 18, 2024
EUR/USD: Sell
The EUR/USD is showing moderate gains, attempting to recover from its lowest level since August 2. It is currently testing the 1.0840 level, but today’s statements from Federal Reserve officials are expected to have a limited impact on the market.
Yesterday, the European Central Bank (ECB) cut rates by 25 basis points as expected, stating that while inflation is under control, there are concerns about the economy. The core Consumer Price Index (CPI) for September increased by 2.7% year-on-year, while the overall CPI slowed to 1.7%.
On the other hand, U.S. retail sales for September increased by 0.4%, surpassing expectations of 0.3%, but industrial production declined by 0.3%, falling short of forecasts.
GBP/USD: Strong Buy
The GBP/USD is showing an upward trend, rebounding from its lowest level since August 19. UK retail sales for September increased by 3.9% year-on-year, exceeding expectations. Data released this week showed that the core CPI decreased to 3.2%, while the overall CPI slowed to 1.7%.
In the U.S., retail sales for September increased by 0.4%, surpassing expectations. Initial jobless claims saw a significant decrease, and the number of continuing claimants was also below forecasts.
AUD/USD: Buy
The AUD/USD is showing mixed movements around 0.6700. Australia’s employment data for September showed an increase of 64,100 jobs, with the unemployment rate improving to 4.1%.
Strong economic data from China is also supporting the Australian dollar. September’s industrial production increased by 5.4% year-on-year, and retail sales rose by 3.2%. Meanwhile, China’s GDP for the third quarter grew by 4.6% year-on-year, slightly above expectations.
USD/JPY: Buy
The USD/JPY is showing a moderate decline around 149.90, pulling back from early August highs. Japan’s nationwide Consumer Price Index (CPI) for September slowed to 2.5% year-on-year, with CPI excluding fresh food adjusted to 2.4%.
In the U.S., retail sales for September increased by 0.4%, exceeding expectations, but industrial production decreased by 0.3%. These data points indicate a mixed situation for the U.S. economy.
XAU/USD: Buy
Gold prices continue to rise actively, aiming for new highs above 2710.00. Expectations for further monetary easing by major central banks are supporting prices. The Federal Reserve may cut rates by 25 basis points in November, and the ECB has already implemented its expected rate cut.
Additionally, geopolitical uncertainties in the Middle East and Eastern Europe, along with the upcoming U.S. presidential election in November, are contributing factors to increased demand for gold.
