EUR/USD: Strong Buy - Key Currency and Technical Analysis (1-Hour Chart) October 31, 2024

EUR/USD: Strong Buy - Key Currency and Technical Analysis (1-Hour Chart) October 31, 2024

EUR/USD: Strong Buy

EUR/USD is showing instability, currently trading around 1.0850. Investors are looking for new movements, especially focusing on Germany's September retail sales, which increased by 1.2%, surpassing expectations. Today's inflation data for the Eurozone is anticipated to show a slowdown in Core CPI from 2.7% to 2.6%, while the overall index is expected to rise to 1.9%. In the United States, the release of the October employment statistics and the Personal Consumption Expenditures (PCE) price index is scheduled, which may influence future monetary policy.

GBP/USD: Strong Buy

GBP/USD continues its downward trend at 1.2950. Upcoming U.S. data on personal income and consumption, along with unemployment insurance claims, are expected, with personal income forecasted to increase by 0.3% and consumption by 0.4%. In the UK, housing prices and manufacturing PMI are under scrutiny, with national housing prices expected to be revised from 3.2% to 2.8%.

AUD/USD: Sell

AUD/USD is fluctuating around 0.6570. Australia's retail sales for September fell short of expectations with a mere 0.1% increase, raising expectations for additional easing by the RBA. Building approvals increased by 4.4%, while China’s non-manufacturing PMI reached 50.2 and manufacturing PMI also showed recovery at 50.1.

USD/JPY: Strong Sell

USD/JPY is slightly declining around 152.90. The Bank of Japan kept its policy rate unchanged, but domestic retail sales dropped from 2.8% to 0.5%, which could impact future policy. Additionally, U.S. GDP decreased from 3.0% to 2.8%, and ADP employment statistics exceeded expectations, with a decline in non-farm payrolls predicted in the upcoming U.S. employment statistics.

XAU/USD: Neutral

XAU/USD is trading around 2790.00, approaching the psychological level of 2800.00. The outcome of the U.S. presidential election is likely to affect the Fed's monetary policy, leading to continued demand for gold as a hedge against geopolitical risks. Rate cuts are expected in November from the U.S., ECB, and the UK, with the Fed anticipated to lower rates by 25 basis points, and the ECB and UK by 50 basis points.