Euro and Pound Decline Amid US Election Anticipation

News & Analysis / / Euro and Pound Decline Amid US Election Anticipation

Forex Analysis

FXOpen

06 Nov 2024, 07:50

Early in this trading week, the dollar’s rise, likely influenced by Trump’s strong polling figures, has somewhat slowed. Based on technical analysis of major currency pairs, the market appears ready for a correctional pullback. However, the US election results could disrupt current patterns.

EUR/USD

Last week, EUR/USD found support around the 1.0760 level and rose above 1.0900. If buyers can hold the price within the 1.0900–1.0800 range, the upward correction might extend towards 1.1100–1.1000. However, if it dips below October’s low of 1.0760, the pair could decline further to the 1.0680–1.0640 range.

Key events potentially impacting EUR/USD:

Today at 12:00 (GMT+3:00): Eurozone Services PMI release.
Today at 17:00 (GMT+3:00): Speech by ECB President Christine Lagarde.
Today at 18:00 (GMT+3:00): Speech by Deutsche Bundesbank President Joachim Nagel.

GBP/USD

After falling below 1.2900, GBP/USD buyers managed to correct and test the psychological level of 1.3000. The continuation of this uptrend will hinge on the US election results and tomorrow’s Bank of England meeting. Analysts expect a rate cut of 25 basis points, bringing it down from 5.00% to 4.75%. Additionally, a Federal Reserve meeting and Jerome Powell’s press conference are scheduled for tomorrow evening. With a busy news schedule, GBP/USD could either break above 1.3000 or settle below 1.2800.

Key events affecting GBP/USD:

Tomorrow at 10:00 (GMT+3:00): Halifax House Price Index release in the UK.
Tomorrow at 15:00 (GMT+3:00): Bank of England rate decision.
Tomorrow at 21:00 (GMT+3:00): Federal Open Market Committee press conference with Jerome Powell.

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