The euro is weakening against the dollar as softer Eurozone economic data and easing inflation contrast with resilient US figures and a persistent Fed hawkish stance. What impact do you expect this divergence to have on global markets going forward?
The US Dollar weakens as traders await the upcoming ADP Non-Farm Employment and ISM Services PMI reports. Market focus intensifies on these key indicators to gauge the Federal Reserve’s next move on interest rates amid signs of slower job growth and economic activity.
GBP/USD faces downward pressure as stronger-than-expected US Services PMI data reinforces the dollar’s appeal and shifts Fed cut expectations. US economic resilience contrasts with mixed UK indicators, keeping sterling on the back foot. Watch support at 1.2650; a break lower may signal further downside.
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AUD/USD remains in a strong uptrend, driven by improving risk sentiment and softer US dollar dynamics. However, the overbought RSI warns of a potential near-term pullback as the pair approaches key resistance near 0.6800. Watch support around 0.6750 and 0.6700 for signs of trend continuation.
USD/JPY steadies near 144.30 amid mixed US jobs data and hawkish BOJ rhetoric. Strong payrolls bolster USD, while BOJ signals potential policy tightening, keeping markets cautious as 2024 unfolds. #Forex #USDJPY #BOJ #USEconomy
EUR/USD weakened to new monthly lows amid stronger US inflation data and a hawkish Fed outlook, then entered consolidation between 1.0720 and 1.0745. With ECB rate cuts widening the yield gap, technical indicators suggest bearish pressure may continue unless resistance near 1.0780 is broken. Full analysis by Alpari at alpari.com
GBP/USD holds a cautiously bullish stance as it consolidates below key resistance at 1.2847 amid mixed technical signals and macro factors. A break above 1.2847 could open the way to 1.2892 and 1.3000, while support at 1.2730 and 1.2670 remains critical. Market awaits fresh catalysts for next directional move. #Forex #GBPUSD #Trading
Canadian Dollar Outlook: USD/CAD remains neutral after softer-than-expected U.S. ADP employment data signals cooling labor market. With Bank of Canada’s dovish rate cuts and key Canadian and U.S. jobs reports ahead, the pair is range-bound as traders await clearer direction.
AUD/USD extends gains amid a weaker US dollar and optimistic Australian economic data. Despite overbought RSI signaling pullback risk, key support levels and a solid uptrend keep the outlook bullish. Watch 0.6730 resistance for potential continuation or pause in momentum. Credit: Christian Borjon Valencia, FXStreet.
