As we head into Thursday, October 24, 2024, global markets are adjusting to the latest developments, marked by the Bank of Canada’s interest rate decision and shifting PMI data from Europe. The U.S. dollar remains in focus, as investors digest mixed economic data ahead of critical U.S. jobless claims and PMI figures.
The Bank of Canada surprised markets with its latest rate decision, causing significant volatility across the USD/CAD pair. Additionally, the Euro remains under pressure as Eurozone PMI data highlighted ongoing economic struggles, weighing on the EUR/USD pair. In the U.K., weaker labor productivity continues to drag on the pound, pushing GBP/USD to new lows.
EUR/USD
Technicals in Focus
The EUR/USD pair remained under heavy selling pressure, closing near 1.0772. Weak Eurozone composite PMI figures confirmed concerns over the region’s economic slowdown, amplifying bearish sentiment. On the technical front, the MACD shows increased negative momentum, while the 14-day RSI is deep in oversold territory, suggesting a continuation of the bearish trend.
Trading Strategy: Neutral to Sell
- Sell below 1.0780 with targets at 1.0730-1.0700, with a stop loss above 1.0800.
- Alternatively, consider long positions above 1.0800 with targets at 1.0850-1.0870, with stops below 1.0770.
GBP/USD
Technicals in Focus
The GBP/USD pair continued to slide, hitting 1.2922 by the end of the session. This decline was driven by concerns over labor productivity, which missed expectations, adding pressure on the pound. The Stochastic Oscillator is showing oversold conditions, suggesting a possible short-term rebound, though the broader trend remains bearish. The 14-day RSI reflects negative sentiment, confirming the downward pressure.
Trading Strategy: Neutral to Sell
- Sell below 1.2940 with targets at 1.2900-1.2870, with stops above 1.2970.
- Alternatively, buy above 1.2970 with targets at 1.3000-1.3030, with stops below 1.2920.
USD/CAD
Technicals in Focus
The USD/CAD pair experienced sharp movements following the Bank of Canada’s rate decision, closing near 1.3842. The initial surge in volatility reflected a surprise in the BoC’s outlook, with the pair retracing after reaching an intraday high. The MACD remains in positive territory, indicating bullish momentum, while the RSI hovers near overbought levels, suggesting caution for further upward moves.
Trading Strategy: Neutral to Buy
- Buy above 1.3820 with targets at 1.3880-1.3900, with a stop loss below 1.3790.
- Alternatively, consider selling below 1.3790 with targets at 1.3750-1.3720, with stops above 1.3840.
Market Outlook
Looking ahead, traders will closely monitor U.S. jobless claims data and PMI releases, which could offer key insights into the state of the U.S. economy. In Canada, market participants remain focused on the Bank of Canada’s policy direction following today’s volatility, with retail sales data also coming into play.
Meanwhile, sentiment around the Euro is expected to remain subdued unless upcoming PMI data shows signs of recovery. GBP/USD traders will keep an eye on central bank commentary and further economic indicators from the U.K. for hints on future policy changes.
Overall, markets are poised for more volatility, driven by ongoing central bank actions and macroeconomic releases, leaving traders with plenty of opportunities for intraday strategies.