The markets are awaiting the ECB interest rate decision today, which could have a significant impact on the euro and other currencies. Investors are also keeping an eye on US economic data, such as nonfarm payrolls, which is expected to be released today. Investors are also looking ahead to the Bank of Japan meeting next week to see if they will take steps towards policy normalization. Gold prices are benefiting from dovish expectations from central banks and weaker US economic data.

Euro (EUR/USD):

  • The ECB is expected to cut interest rates today, which could weaken the euro in the short term.
  • However, the ECB is confident that inflation will continue to move lower, which could support the euro in the long term.
  • Resistance at 1.0895 and support at 1.0842 and 1.0794.
  • A strong ECB stance could see EUR rise to 1.0971, while a dovish stance could see it fall to 1.0770


British Pound (GBP/USD):

  • The BoE wage growth expectations have fallen, which could lead to a rate cut by the BoE in the future. This could weaken the pound.
  • However, the UK economy is showing some strength, which could limit the downside for the pound.
  • Resistance at 1.2802 and support at 1.2741 and 1.2682.
  • GBP could rise to 1.2845 on weak US data or a strong ECB stance, and fall to 1.2712 on strong US data or a dovish ECB stance.


Japanese Yen (USD/JPY):

  • The Japanese yen is steady after showing sharp swings throughout the week.
  • A weak GDP release from Japan on Monday could delay any plans at the BoJ to tighten policy, which could weaken the yen.
  • Support at 155.75 and resistance at 156.86 and 157.60.
  • USD/JPY could rise to 157.64 on strong US data, and fall to 154.84 on weak US data.


Gold (XAU/USD):

  • Gold prices rose on Wednesday on expectations of an ECB rate cut and weaker-than-expected US employment data.
  • The recent uptrend suggests gold could see further upside, but a correction might occur before the next move.
  • Support levels are at 2347, 2338, and 2328, while resistance levels are at 2375 and 2395.


Important Events

  • ECB interest rate decision
  • US non-farm payrolls report
  • Japan’s GDP data


Categories: Market News

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