As we head into Monday, September 9, 2024, global markets are positioned for a session that could see heightened volatility, driven by a series of significant forex economic data releases. The U.S. dollar remains the focal point as traders react to recent data and prepare for upcoming reports, particularly the U.S. inflation expectations and central bank announcements.
In the currency markets, the EUR/USD pair experienced a choppy session, largely influenced by mixed economic signals from the Eurozone and the U.S. The euro remains under pressure amid ongoing concerns about the region’s economic outlook, as traders await further insights from the European Central Bank (ECB) and U.S. data, including inflation expectations and consumer sentiment reports.
Meanwhile, the GBP/USD pair saw a sharp decline, reflecting the pound’s weakness amid political uncertainty and a stronger U.S. dollar. The movements were also influenced by positioning ahead of key UK labor market data, which could provide more direction for the pair.
The USD/JPY pair exhibited notable volatility, reflecting the market’s sensitivity to risk sentiment and U.S. economic data. Traders are closely monitoring developments as they assess the implications of upcoming U.S. economic figures, particularly inflation expectations and Federal Reserve signals.
EUR/USD
Technicals in Focus
The EUR/USD pair remained volatile, closing near the 1.1085 level after oscillating throughout the session. The pair’s movements were influenced by mixed Eurozone and U.S. forex economic data, with traders showing caution ahead of U.S. inflation data. On the technical front, the MACD indicator is hovering near the zero line, with histograms showing minimal momentum, suggesting indecision in the market. The Stochastic Oscillator is in neutral territory, offering no clear directional bias. The 14-day RSI remains subdued, reflecting the pair’s current range-bound behavior.
Trading Strategy: Neutral to Sell
Sell below 1.1080-1.1060 with targets at 1.1030-1.1000 and 1.0970-1.0950, with a stop loss above 1.1110. Alternatively, consider long positions above 1.1110 with targets of 1.1140-1.1170, with stops below 1.1060.
GBP/USD
Technicals in Focus
The GBP/USD pair experienced a sharp decline, closing near the 1.3125 level after hitting a session high of 1.3160. This movement was largely driven by political uncertainty in the UK and a stronger U.S. dollar. On the technical side, the MACD has crossed below the zero line, indicating increasing bearish momentum. The Stochastic Oscillator is in oversold territory, suggesting that the pair may soon see a corrective bounce. The 14-day RSI is neutral, offering no clear directional bias.
Trading Strategy: Neutral to Sell
Sell below 1.3130-1.3110 with targets at 1.3080-1.3060 and 1.3000-1.2980, with a stop loss above 1.3160. Alternatively, consider buying above 1.3160 with targets at 1.3200-1.3230, with a stop below 1.3130.
USD/JPY
Technicals in Focus
The USD/JPY pair exhibited significant volatility, closing near the 142.25 level after a sharp reversal from session highs. This movement was driven by risk sentiment and upcoming U.S. forex economic data, including inflation expectations. On the technical front, the MACD has crossed below the zero line, indicating weakening bullish momentum. The Stochastic Oscillator is in oversold territory, suggesting potential for a short-term rebound. The 14-day RSI remains neutral, reflecting the pair’s current consolidation phase.
Trading Strategy: Neutral to Buy
Buy above 142.20-142.00 with targets at 142.50-142.80 and 143.00-143.20, with a stop loss below 141.80. Alternatively, consider selling below 141.80 with targets at 141.50-141.20, with stops above 142.20.
Market Outlook – Forex Economic Data
Looking ahead, U.S. inflation expectations data will be closely watched as it could provide key insights into the strength of the U.S. economy and the future direction of the U.S. dollar. Additionally, traders will monitor any updates from the ECB as they continue to gauge the central bank’s policy stance amidst ongoing economic uncertainties in the Eurozone.
In the UK, labor market data will be a critical factor for GBP/USD movements, particularly in light of political uncertainty and central bank communications. The Japanese yen will also be influenced by risk sentiment, with the potential for further volatility as U.S. economic data is released.
Overall, the market is expected to remain sensitive to economic data and central bank communications, with potential for increased volatility as traders react to new information.