The global market remains cautious as investors await key economic data and central bank decisions. The euro and pound face uncertainties, while the Aussie and yen show resilience. Technical analysis suggests potential breakouts in both EUR/USD and GBP/USD.
Global Market Overview:
- Euro Steady: The euro remains stable despite weak economic data from Germany and the eurozone.
- British Pound Dips: The pound edges lower after shop inflation falls but remains above the 2% target.
- Aussie Resilient: The Aussie dollar shrugs off weak retail sales data, awaiting inflation figures.
- Yen Shows Strength: The yen strengthens slightly on positive employment data and potential policy changes.
Key Events:
- FOMC Meeting: The Federal Reserve is expected to hold rates steady tomorrow, but investors await clues about future cuts.
- US Employment Data: Job openings and consumer confidence data are due later today, providing insights into the US economy.
- Australian Inflation: Wednesday’s inflation report is crucial for the RBA’s rate decision next month.
- Japanese Data: Retail sales, industrial production, and consumer confidence figures are expected later this week. The Bank of Japan (BoJ) may reconsider its stimulus program if inflation reaches 2%.
- Germany, the eurozone’s largest economy, entered a technical recession with two consecutive quarters of negative GDP.
- The eurozone barely avoided a recession at the end of 2023, but the outlook for early 2024 remains uncertain.
- The Bank of England (BoE) is likely to maintain its current interest rate on Thursday.
Technical Analysis:
- EUR/USD: Faces resistance at 1.0866 and 1.0920, with support at 1.0801 and 1.0747.
- GBP/USD: Tests resistance at 1.2740 and 1.2772, with support at 1.2711 and 1.2679.
- AUD/USD: Tests support at 0.6599 and 0.6582, with resistance at 0.6628 and 0.6645.
- USD/JPY: Consolidates around 147.40, awaiting further market developments.
Categories: Market News
