As we head into Thursday, September 12, 2024, global markets are reacting to key economic data and positioning ahead of critical central bank decisions. With U.S. inflation data and labor reports continuing to shape the Federal Reserve’s monetary outlook, traders are closely monitoring the latest movements across major currency pairs, including the EUR/USD volatility.
In the currency markets, the EUR/USD pair experienced heightened volatility, largely driven by market reaction to U.S. inflation data and concerns over Eurozone growth. The euro briefly attempted a recovery but remained under pressure, closing near the 1.1020 level. Traders are anticipating further insights from the European Central Bank’s policy decision, which could determine the pair’s next major move.
Meanwhile, the GBP/USD pair saw a sharp rebound following a dip, closing near the 1.3040 level. This recovery came after weak U.K. GDP and manufacturing data initially pressured the pound, but traders are now looking ahead to potential policy changes and economic releases from both the U.K. and the U.S. to determine the pair’s short-term direction.
The USD/JPY pair displayed mixed movements throughout the session, fluctuating around the 142.10 level. The yen saw some demand amid uncertainty, but U.S. dollar strength ahead of key inflation data continues to limit its upside potential. Market participants are closely watching Japan’s manufacturing data and large-scale economic performance for further guidance.
EUR/USD
Technicals in Focus
The EUR/USD pair faced significant volatility, closing near the 1.1020 level after an initial attempt at recovery failed to sustain. The pair’s movements were driven by concerns over Eurozone growth and the anticipation of U.S. inflation data. On the technical front, the MACD indicator shows bearish momentum, while the Stochastic Oscillator is approaching oversold territory, suggesting the possibility of a short-term bounce. The 14-day RSI remains neutral, signaling indecision in the market.
Trading Strategy: Neutral to Sell
- Sell below 1.1020-1.1000 with targets at 1.0970-1.0950 and 1.0920-1.0900, with a stop loss above 1.1050.
- Alternatively, consider long positions above 1.1050 with targets of 1.1080-1.1100, with stops below 1.1000.
GBP/USD
Technicals in Focus
The GBP/USD pair rebounded from recent lows, closing around the 1.3040 level. The pair had been pressured by weaker U.K. data before staging a recovery. On the technical side, the MACD shows some bullish momentum building, while the Stochastic Oscillator is in neutral territory, suggesting that the pair may consolidate before its next move. The 14-day RSI shows signs of turning neutral, indicating a potential pause in the downtrend.
Trading Strategy: Neutral to Buy
- Buy above 1.3050-1.3070 with targets at 1.3100-1.3130 and 1.3150-1.3170, with a stop loss below 1.3000.
- Alternatively, consider selling below 1.3000 with targets at 1.2970-1.2950, with stops above 1.3050.
USD/JPY
Technicals in Focus
The USD/JPY pair displayed mixed movements, trading near the 142.10 level after a sharp dip earlier in the session. The pair’s direction is heavily influenced by market positioning ahead of key inflation data from the U.S. On the technical front, the MACD indicator is neutral, while the Stochastic Oscillator shows signs of recovery from oversold conditions, suggesting potential upside. The 14-day RSI remains neutral, indicating consolidation.
Trading Strategy: Neutral to Buy
- Buy above 142.20-142.40 with targets at 142.70-143.00 and 143.20-143.50, with a stop loss below 142.00.
- Alternatively, consider selling below 142.00 with targets of 141.70-141.40, with stops above 142.30.
Market Outlook
Looking ahead, the U.S. inflation data and upcoming European Central Bank decisions will be pivotal in determining market direction. In the U.K., traders will be watching for further economic data releases, particularly labor market and inflation reports, which could provide additional insight into the pound’s trajectory. The yen’s movements will likely be guided by further economic data from Japan and U.S. inflation expectations. Overall, markets are expected to remain volatile as key economic reports continue to shape global trading strategies.