As we head into Friday, October 11, 2024, global markets brace for a session shaped by key economic data from the US, UK, and New Zealand such as how the GBP/USD Drops as Trade Data Disappoints. Markets are reacting to U.S. labor and inflation data, while UK industrial production figures and New Zealand’s business confidence figures add to the volatility in currency pairs.
The GBP/USD pair remains under pressure due to weak UK economic performance, while the USD/JPY pair exhibits volatility in response to fluctuating risk sentiment. Meanwhile, the NZD/USD saw significant movement driven by changes in market risk appetite.
GBP/USD Drops as Trade Data Disappoints
GBP/USD Drops as Trade Data Disappoints
The GBP/USD pair traded near the 1.3045 level after significant selling pressure in response to weak UK trade balance data. The pair reached a low near 1.3030 before recovering slightly, reflecting the broader market’s concerns about the UK economy. On the technical front, the MACD remains bearish, with increasing momentum favoring further downside. The Stochastic Oscillator is approaching oversold territory, which suggests a potential corrective move, but overall sentiment remains weak. The 14-day RSI is below the 50 level, indicating a bearish trend in the short term.
Trading Strategy: Neutral to Sell
Sell below 1.3050-1.3030 with targets at 1.3000-1.2970, with a stop loss above 1.3080. Alternatively, consider long positions above 1.3080 with targets of 1.3110-1.3130, with stops below 1.3050.
USD/JPY
Technicals in Focus
The USD/JPY pair experienced heightened volatility, oscillating around the 148.75 level as the market reacted to mixed U.S. economic data. The pair reached a high near 149.34 before retracing to the 148.75 level. The MACD indicates diminishing bullish momentum, while the Stochastic Oscillator shows overbought conditions, signaling potential for a short-term pullback. The 14-day RSI hovers near the overbought threshold, reflecting the pair’s bullish bias, but caution is warranted as a corrective move could emerge.
Trading Strategy: Neutral to Buy
Buy above 148.70-148.90 with targets at 149.20-149.50 and 149.80-150.00, with a stop loss below 148.50. Alternatively, consider selling below 148.50 with targets of 148.20-148.00, with stops above 148.70.
NZD/USD
Technicals in Focus
The NZD/USD pair traded near the 0.6080 level, reflecting broader risk sentiment fluctuations. The pair briefly touched a high near 0.6095 before retreating. On the technical side, the MACD remains in bearish territory, indicating downward momentum. The Stochastic Oscillator has risen out of oversold conditions, suggesting a possible near-term recovery, but caution remains as the pair’s overall direction is still downward. The 14-day RSI is neutral, reflecting the pair’s range-bound nature for now.
Trading Strategy: Neutral to Sell
Sell below 0.6080-0.6060 with targets at 0.6030-0.6000, with a stop loss above 0.6100. Alternatively, consider buying above 0.6100 with targets of 0.6130-0.6150, with stops below 0.6080.
GBP/USD Drops as Trade Data Disappoints
Looking ahead, markets will closely monitor the U.S. Baker Hughes Oil Rig Count and speculative net positioning reports to gauge risk sentiment in the broader markets. In the UK, industrial production and GDP data will provide insights into the health of the UK economy, further influencing the GBP/USD pair. For New Zealand, traders will assess the impact of upcoming business confidence data on the NZD/USD pair. Overall, the market is expected to remain sensitive to these economic reports, leading to potential volatility across major currency pairs.
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