We have entered the market selling EUR/USD at $1.2685 (100-period MA on H4). Stop is at $1.2735, take profit 1 is at $1.2625, take profit 2 is at $1.2585. The pair has eroded support of the corrective upside channel, but the odds are of sideways trading above October lows. US inflation increased in Sep. – a USD-bullish factor. The market is now waiting for the euro zone’s PMIs on Thursday. Data will likely show that the deterioration in the region’s economic activity. We are also thinking about USD/CHF longs from 0.9485 with target at 0.9560 and stop loss below 0.9455.
Our forecast for GBP/USD proved to be right: the cable bounced back from the $1.6200/6185 area and touched $1.6010 in Europe. The market was disappointed as the BOE meeting minutes showed no changes in voting: 7 members out of 9 stay on the dovish side. The hawkish MPC member Wale is scheduled to speak at 19:00 GMT, but the upside will likely be limited by the round $1.6100 figure. A daily close below $1.6050 would open the way to $1.5950 and $1.5870. On Thursday UK is scheduled to release retail sales data (forecast – negative).
USD/JPY holds above the 107 mark. However, the 107.50/108.00 area remains strongly resistive for now and we have no reasons to expect a break higher in the near term. Support lies at 106.50 and 106.20. AUD/USD looks too risky to trade. We await fresh signals.
Our forecast for GBP/USD proved to be right: the cable bounced back from the $1.6200/6185 area and touched $1.6010 in Europe. The market was disappointed as the BOE meeting minutes showed no changes in voting: 7 members out of 9 stay on the dovish side. The hawkish MPC member Wale is scheduled to speak at 19:00 GMT, but the upside will likely be limited by the round $1.6100 figure. A daily close below $1.6050 would open the way to $1.5950 and $1.5870. On Thursday UK is scheduled to release retail sales data (forecast – negative).
USD/JPY holds above the 107 mark. However, the 107.50/108.00 area remains strongly resistive for now and we have no reasons to expect a break higher in the near term. Support lies at 106.50 and 106.20. AUD/USD looks too risky to trade. We await fresh signals.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.