XAU/USD Strong Buy - Featured Currency and Technical Analysis (15-Minute Chart) July 5, 2024

EUR/USD Sell

EUR/USD is trading around 1.0820, reaching new highs since June 12. Market activity remains subdued as the U.S. market was closed yesterday for Independence Day. The June U.S. employment report, to be released today at 14:30 (GMT+2), is expected to show a decrease in non-farm payrolls from 272,000 to 190,000, with average hourly earnings declining from 4.1% to 3.9% year-over-year, and from 0.4% to 0.3% month-over-month. This could lead to the Federal Reserve lowering rates this year. Additionally, the Eurozone’s May retail sales are expected to improve from 0.0% to 0.1% year-over-year and from –0.5% to 0.2% month-over-month.

GBP/USD Buy

GBP/USD is trading around 1.2770, testing new highs since June 13. The weakening U.S. dollar is aiding the pound’s rise. Concerns persist over the Federal Reserve starting rate cuts, with Fed Chair Jerome Powell maintaining a cautious approach. The June U.S. employment report, to be released today at 14:30 (GMT+2), is expected to show a decrease in non-farm payrolls from 272,000 to 190,000, with average hourly earnings declining from 4.1% to 3.9% year-over-year, and from 0.4% to 0.3% month-over-month. In the UK, early general elections are underway, with the Labour Party seen as the favorite.

AUD/USD Buy

AUD/USD is trading around 0.6730, reaching new highs since January 5. The weakening U.S. dollar and strong macroeconomic data from Australia are supporting the Australian dollar. Specifically, May retail sales increased from 0.1% to 0.6%, and the services PMI rose from 51.0 points to 51.2 points. The June U.S. employment report, to be released today, could influence the Federal Reserve's decision on rate cuts, and the market is closely watching its results.

USD/JPY Strong Sell

USD/JPY is trading around 160.70, reaching new lows since June 28. Technical factors and weak U.S. macroeconomic data are strengthening the yen. The ISM Services PMI fell from 53.8 points to 48.8 points, and May factory orders declined by 0.5%. The June U.S. employment report, to be released today at 14:30 (GMT+2), is expected to suggest a possible rate cut by the Federal Reserve in September.

XAU/USD Strong Buy

XAU/USD is trading around 2360.00, maintaining an upward trend. The market is focused on the June U.S. employment report, to be released today, which could impact the Federal Reserve’s decision on monetary policy easing. Non-farm payrolls are expected to decrease from 272,000 to 190,000, with average hourly earnings declining from 4.1% to 3.9% year-over-year, and from 0.4% to 0.3% month-over-month. The Federal Reserve’s official forecast suggests 1.5 rate cuts of 25 basis points each this year, but the market is expecting one rate cut in September.