FXOpen
A week rich in macroeconomic data contributed to the decline of the euro, yen, and pound. Notably, the following events were significant:
- Inflation falling for the second consecutive month (0.2% against the expected 0.3%);
- The publication of the updated forecast from the Federal Reserve (one reduction in the federal funds rate by 0.25%, presumably in September).
Nonetheless, despite the hawkish stance of the Federal Reserve and the steady slowdown in inflation, European currencies managed to stay above key levels relative to the dollar, even laying the groundwork for forming reversal patterns.
GBP/USD
According to the technical analysis of the GBP/USD pair on the daily timeframe, a "piercing candle" pattern was formed yesterday. If the pair closes with any bullish candle today, the price might reach recent highs around 1.2860-1.2810. A resumption of the downtrend is possible with a confident hold below 1.2650. The following news might impact GBP/USD pricing:
- Today at 15:30 (GMT +3:00) the US core retail sales index for May;
- Today at 15:30 (GMT +3:00) the US retail sales volume;
- Tomorrow at 09:00 (GMT +3:00) the UK consumer price index (CPI) for last month.
EUR/USD
Technical analysis of the EUR/USD pair suggests a potential corrective rise towards 1.0800, provided the "bullish engulfing" pattern formed yesterday is realised. If the price falls below 1.0660, a retest of the April low around 1.0600 is possible. Today, important macroeconomic data from the eurozone is expected:
- At 12:00 (GMT +3:00) the ZEW economic sentiment index for the eurozone;
- At 12:00 (GMT +3:00) the eurozone consumer price index (CPI).
Experts forecast a rise in these indices, which may support the strengthening of EUR/USD.
Also important for EUR/USD pricing will be the scheduled speech by the Vice-President of the European Central Bank, Luis de Guindos, at 16:30 (GMT +3:00).
Read analytical EUR/USD price forecasts for 2024 and beyond.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Euro And Sterling Rally Slows After Strong US Data
At the start of the week, the euro and sterling posted solid gains amid dollar weakness and expectations of a more accommodative Federal Reserve policy path, testing local highs. However, the release of the January US employment report shifted market
Nikkei 225 Retreats From Record High
As the chart shows, the Nikkei 225 index (Japan 225 on FXOpen) reached a historic high near 58,500 points on Monday. Bullish sentiment was driven primarily by political developments.
According to media reports, the rally followed the decisive victory
WTI Oil Price Climbs to a Monthly High
As the XTI/USD chart shows, the price per barrel moved above the 4 February peak yesterday, marking its highest level since the start of the month. The bullish sentiment has been driven by geopolitical uncertainty. According to media reports: