As we head into Tuesday, October 15, 2024, global markets are poised for a critical trading session with several key economic data releases on the horizon. The U.S. dollar continues to dominate market sentiment, with upcoming inflation data (CPI) expected to provide crucial insights into the Federal Reserve’s policy trajectory. With inflationary pressures still a major concern, any surprises in the U.S. CPI figures could trigger substantial volatility across the forex market.
In Europe, the ECB’s recent communications have left market participants uncertain about the central bank’s next moves, leading to mixed performance in the euro. The EUR/USD pair is expected to remain choppy as traders digest mixed economic signals from both sides of the Atlantic. Commodity-linked currencies like the Canadian dollar and Australian dollar are also in focus, with fluctuating oil prices and economic releases from these regions providing additional catalysts for price action.
The British pound (GBP) is likely to remain under pressure following last week’s disappointing U.K. trade and industrial production data, adding to concerns about the health of the British economy. With the GBP/USD pair on a downward trend, market participants will be keenly awaiting tomorrow’s U.K. employment data, which could either exacerbate or relieve some of the selling pressure on the pound.
EUR/USD

Technicals in Focus
The EUR/USD pair experienced a sharp sell-off during Monday’s session, closing near the 1.0902 level. The pair’s movements were largely driven by anticipation of U.S. CPI data and mixed economic indicators from the Eurozone. On the technical front, the MACD shows increasing bearish momentum, while the Stochastic Oscillator remains in oversold territory, signaling a potential corrective bounce. The 14-day RSI remains subdued, reflecting persistent selling pressure.
Trading Strategy: Neutral to Sell
Sell below 1.0910-1.0890 with targets at 1.0860-1.0830 and a stop loss above 1.0940. Alternatively, consider long positions above 1.0950 with targets of 1.0980-1.1010, with stops below 1.0910.
GBP/USD

Technicals in Focus
The GBP/USD pair remained volatile, closing near the 1.3053 level after a choppy session. Disappointing trade and industrial production data from the UK added pressure on the pound, and traders are cautiously awaiting the UK employment figures due tomorrow. The MACD is neutral, showing little directional bias, while the Stochastic Oscillator is hovering in oversold territory, suggesting a potential rebound. The 14-day RSI also reflects a neutral to bearish sentiment.
Trading Strategy: Neutral to Sell
Sell below 1.3060-1.3040 with targets at 1.3010-1.2980, with a stop loss above 1.3090. Alternatively, consider buying above 1.3090 with targets at 1.3120-1.3150, with stops below 1.3040.
USD/CAD

Technicals in Focus
The USD/CAD pair showed resilience, closing near the 1.3795 level. The pair’s movements were influenced by fluctuations in oil prices and broader U.S. dollar strength. On the technical front, the MACD remains bullish, indicating strong upward momentum, while the Stochastic Oscillator is entering overbought territory, hinting at a possible retracement. The 14-day RSI is in neutral to bullish territory, reflecting the pair’s current consolidation.
Trading Strategy: Neutral to Buy
Buy above 1.3780-1.3800 with targets at 1.3830-1.3870 and a stop loss below 1.3750. Alternatively, consider selling below 1.3750 with targets at 1.3720-1.3690, with stops above 1.3780.
Market Outlook
Looking ahead, the U.S. CPI report and UK employment data are the key focal points for market participants. These data releases are expected to shape the near-term direction of the dollar and pound, while broader risk sentiment will continue to influence other major currency pairs. Additionally, oil prices and their impact on commodity-linked currencies like the Canadian dollar will be closely watched.
Overall, markets are likely to remain reactive to economic data, with volatility expected to increase as traders adjust their positions based on the latest releases.