2023-12-09 19:07
The Canadian dollar weakened after the Bank of Canada held rates steady at 5%. Oil fell for a seventh week due to concerns about oversupply. The US economy reported 199,000 jobs last month, while the unemployment rate fell to 3.7%. There is bullish optimism in the USD/CAD weekly forecast amid a stronger dollar. The bigger-than-expected US employment growth points to a still-tight labor market, supporting the dollar. –Are you interested to learn more about ECN brokers? Check our detailed guide- Ups and downs of USD/CAD USD/CAD closed the week higher amid key events in Canada and the US. The Canadian dollar weakened after the Bank of Canada held rates steady at 5%. Still, the bank stated the possibility of another rate hike as inflation remains a concern. Furthermore, weakness came amid a drop in oil prices. Oil fell for a seventh week due to concerns about oversupply. Meanwhile, the dollar ended the week on the front foot after employment data came in stronger than expected. The US economy reported 199,000 jobs last month, while the unemployment rate fell to 3.7%. Next week’s key events for USD/CAD Next week is packed with high-impact events from the US, including the Fed meeting and inflation and retail sales data. Consumer and producer inflation data will come out before the Fed meeting. Therefore, these reports will determine whether the Fed is hawkish or dovish at the meeting. A drop in inflation will suggest a dovish Fed and increase bets for rate cuts. Meanwhile, the Fed will likely maintain steady rates on Wednesday. Additionally, the Fed will unveil its economic projections summary, revealing officials’ rate expectations for the next year. USD/CAD weekly technical forecast: 1.3502 level temporarily halts decline After trading in a bullish trend for some time, the price has broken below its support trendline, signaling a reversal. At the same time, the RSI fell well below the pivotal 50 level, suggesting a shift in sentiment. –Are you interested to learn more about day trading brokers? Check our detailed guide- The decline paused at the 1.3502 support level for a short rebound. However, the bearish bias is strong, meaning the recovery is only temporary. Bears are likely waiting at the nearest resistance level to resume the downtrend. If the price continues climbing next week, it will likely pause at the 22-SMA resistance. However, there is also a chance the price will climb higher to retest the recently broken trendline. Still, when bears return, the price will fall to retest the 1.3502 and the 1.3402 support levels. https://www.forexcrunch.com/blog/2023/12/09/usd-cad-weekly-forecast-dollar-thrives-on-surprising-nfp/
2023-12-09 19:03
The dollar got a boost from an upbeat employment report. Australia’s central bank kept interest rates unchanged on Tuesday. Investors are eagerly awaiting the FOMC policy meeting. There is a touch of bearish sentiment in the AUD/USD weekly forecast as the dollar recovers after an upbeat employment report. This recovery could spill into next week. –Are you interested to learn more about ECN brokers? Check our detailed guide- Ups and downs of AUD/USD AUD/USD had a bearish week as the Australian dollar was vulnerable after the RBA meeting. Meanwhile, the dollar got a boost from an upbeat employment report. As anticipated, Australia’s central bank kept interest rates unchanged on Tuesday. This decision gives the bank additional time to evaluate the economy’s condition and determine whether to implement further tightening next year. Meanwhile, in the US, employment data earlier in the week pointed to a weakening labor market. However, the all-important NFP report showed that job growth increased while unemployment fell. Therefore, there is still strength in the labor market, which boosted the dollar on Friday. Next week’s key events for AUD/USD Next week, the US will release key inflation and retail sales reports. Additionally, investors are eagerly awaiting the FOMC policy meeting. Meanwhile, Australia will release employment data. The US consumer and producer price index reports will show the state of price growth for consumers and at the wholesale level. These will have a huge impact on the Fed policy meeting. Notably, recent data has supported the view that the Fed is done with rate hikes. Therefore, a drop in inflation could increase rate-cut bets. At the FOMC meeting, market participants expect the Fed to hold rates at the current level. However, they will focus on the statement after the meeting for clues on what the Fed will do in the future. AUD/USD weekly technical forecast: Bulls face resistance at the 0.618 fib On the technical side, AUD/USD is in a bullish trend. The price closed above the 22-SMA, and the RSI is above 50. Moreover, the price has respected the 22-SMA as support, making a strong bullish candle from the level. Consequently, the price has made a higher high and low, showing a bullish trend. –Are you interested to learn more about day trading brokers? Check our detailed guide- However, the price is also retracing the most recent downtrend. It has reached the 0.618 key fib level that could reverse the current move. Furthermore, resistance at the 0.6702 key level could also stop the bullish move. The bullish trend could continue next week. However, the strong resistance zone might reverse the move. https://www.forexcrunch.com/blog/2023/12/09/aud-usd-weekly-forecast-employment-boost-sparks-dollar/
2023-12-08 12:13
Despite temporary rebounds, the EUR/USD pair maintains a bearish bias in the short term. A new lower low activates more declines. The US NFP, Unemployment Rate, and Average Hourly Earnings should move the rate. The EUR/USD price slipped lower after reaching yesterday’s high of 1.0817. The pair is trading at 1.0785 at the time of writing. The short-term bias remains bearish. Hence, more declines are still in the cards. The US dollar dropped significantly, which provided room for Euro buyers. –Are you interested to learn more about forex options trading? Check our detailed guide- Yesterday, the US and the Eurozone reported mixed data. The US Unemployment Claims came in at 220K in the last week versus 221K expected but above 219K in the former reporting period. At the same time, the Eurozone Revised GDP reported a 0.1% drop as expected but German Industrial Production fell by 0.4% even if the traders expected a 0.1% growth. Today, the German Final CPI reported a 0.4% drop, matching expectations. Later, the US economic figures should move the markets. The Non-Farm Payrolls is expected at 184K in the last month versus 150K in the previous reporting period. Average Hourly Earnings may announce a 0.3% growth, after a 0.2% growth in October, while the Unemployment Rate could remain steady at 3.9%. Furthermore, the Prelim UoM Consumer Sentiment could jump from 61.3 points to 62.0 points. From the technical point of view, the EUR/USD price found support on the descending pitchfork’s lower median line (lml). The pair has bounced back but it has failed to stay above the weekly S1 of 1.0800 psychological level. -If you are interested in knowing about scalping forex brokers, then read our guidelines to get started- Now, it challenges the demand zone from above the 1.0755 former low. The downside pressure remains high despite temporary rebounds. Staying near the former low and right above the lower median line (lml), the price action may announce an imminent breakdown and a downside continuation. Only staying above 1.0760 and coming back above 1.08 may announce a larger rebound. https://www.forexcrunch.com/blog/2023/12/08/eur-usd-price-in-demand-zone-all-eyes-on-us-nfp/
2023-12-08 09:54
Investors believe the BoE’s first rate cut may not occur until June. The upcoming BoE meeting next week will likely result in no change for UK rates. There was a moderate increase in Americans filing new claims for unemployment benefits. In Friday’s GBP/USD price analysis, a bearish tone prevails as the pound succumbs to a stronger dollar ahead of a pivotal US employment report. Investors keenly anticipate the release of the US non-farm payrolls, eagerly seeking insights that could illuminate the Fed’s next policy decisions. –Are you interested to learn more about forex options trading? Check our detailed guide- A Reuters poll estimates that the US unemployment rate remained 3.9% in November. On the other hand, the non-farm payrolls might rise to 180,000 from 150,000 in October. Meanwhile, investor confidence in early rate cuts by major central banks is growing. However, futures markets indicate investors believe the BoE’s first rate cut may not occur until June. At the same time, there are expectations for March cuts by the European Central Bank and the Federal Reserve. This belief has contributed to limited profit-taking on the pound’s November rally. The upcoming BoE meeting next week will likely result in no change for UK rates. However, market attention will be on the post-meeting statement. Elsewhere, recent data in the US revealed a moderate increase in Americans filing new claims for unemployment benefits. Consequently, it indicates a gradual loss of momentum in the labor market due to higher borrowing costs. GBP/USD key events today US average hourly earnings US non-farm employment change US unemployment rate US consumer sentiment GBP/USD technical price analysis: Price nears a resilient support zone Pound bears are finding their footing below the 30-SMA as the new bearish trend slowly takes shape. GBP/USD has been in a strong uptrend that paused at the 1.2731 key level. At this point, bears took over when they pushed the price below the 30-SMA. -If you are interested in knowing about scalping forex brokers, then read our guidelines to get started- Now, the price is making lower lows and highs, indicating that bears are in the lead. However, they will still face strong support levels that could stop the downtrend. The price is approaching a strong support zone comprising the 0.382 fib retracement and 1.2501 key support levels. A break below this zone would allow the price to retest the 1.2401 key level. However, bulls might resume the previous uptrend if the zone holds firm. https://www.forexcrunch.com/blog/2023/12/08/gbp-usd-price-analysis-dollar-gains-before-critical-us-nfp-data/
2023-12-08 08:28
There is optimism that Japan’s ultra-low interest rates are approaching their end. The dollar was weak ahead of the awaited US nonfarm payrolls report. Japan’s economy contracted faster than initially estimated in the third quarter. As the week drew to a close, the USD/JPY outlook took a bearish turn, driven by the yen’s formidable rally. The currency surged, poised for its most impressive performance against the dollar in nearly five months. This surge came from increased bets that Japan’s ultra-low interest rates are approaching their end. –Are you interested to learn more about forex options trading? Check our detailed guide- Moreover, the yen’s overall strength restrained the dollar, which weakened before the awaited US nonfarm payrolls report later in the day. On Thursday, Bank of Japan (BOJ) Governor Kazuo Ueda mentioned that the central bank had various options for targeting interest rates once it lifted short-term borrowing costs from negative territory. Notably, it was the most explicit indication that the BOJ might soon phase out its ultra-loose monetary policy. Consequently, the yen surged to multi-month highs against major peers. Moreover, it experienced its most significant daily rise since January, with a gain of over 2% on Thursday. As such, it was poised to end the week with a more than 2% increase. Now, attention shifts to the upcoming two-day monetary policy meeting of the BOJ on Dec. 18 for indications of a potential policy shift. Meanwhile, revised data on Friday revealed that Japan’s economy contracted more rapidly than initially estimated in the third quarter. It complicates the central bank’s efforts to phase out its accommodative monetary policy, particularly as the household sector struggles. USD/JPY key events today Investors expect key events from the US, including Average hourly earnings Non-farm employment change Unemployment rate Consumer sentiment USD/JPY technical outlook: Price pattern hints at more downside On the charts, the USD/JPY price has collapsed to new lows after breaking below the 146.50 key level. The breakout triggered a sharp decline that saw bears break below the 144.01 support. Furthermore, the fall allowed the price to make a big swing from the 30-SMA, confirming strong bearish momentum. -If you are interested in knowing about scalping forex brokers, then read our guidelines to get started- However, the collapse also pushed the RSI into oversold territory. This extreme level allowed bulls to return to the 142.02 level for a retracement to the 144.01 level. Still, the price has made a triangle, a continuation pattern likely leading to a retest and break below the 142.02 support. https://www.forexcrunch.com/blog/2023/12/08/usd-jpy-outlook-yen-heads-for-a-stellar-week-against-the-dollar/
2023-12-07 10:12
Traders bet on the ECB starting rate cuts from March 2024. The euro is down 1% this week, marking its most significant weekly decline since May. US private payrolls rose less than anticipated in November. Thursday witnessed the euro descending to its lowest level in over three weeks, shaping a bearish EUR/USD outlook as traders bet on the ECB rolling out rate cuts starting in March 2024. Meanwhile, the dollar remained stable ahead of crucial payroll data this week. –Are you interested to learn more about forex options trading? Check our detailed guide- The euro is down 1% this week, marking its most significant weekly decline since May. Traders estimate an 85% likelihood of the ECB cutting interest rates in the March meeting. Moreover, they are pricing in nearly 150 basis points of easing by the end of next year. Meanwhile, a Reuters poll indicates that most economists expect the ECB to cut rates in the second quarter of next year. In an interview published on Wednesday, ECB member and Bank of France head Francois Villeroy de Galhau hinted at the possibility of a rate cut starting in 2024. Additionally, he cited a faster-than-expected disinflation. The ECB is expected to keep interest rates at the current record high of 4% next week. However, the focus will shift to officials’ comments about the rate outlook. Elsewhere, data showed that US private payrolls rose less than anticipated in November, signaling a gradual cooling in the labor market. Investors will closely monitor Friday’s non-farm payrolls data for a clearer view of the labor market. Softening economic data and comments from Fed officials have fueled expectations that the central bank is concluding its rate-increase cycle and might start cutting rates as early as March. EUR/USD key events today The US Initial Jobless Claims report EUR/USD technical outlook: Buyers ready for a comeback at 1.618 Fib extension After breaking below the 1.0851 key support level, EUR/USD has collapsed to the 1.0751 support. There is a solid bearish bias, supported by the 30-SMA, which trades far above the price. At the same time, the RSI has held near the oversold region, indicating strong bearish momentum. -If you are interested in knowing about scalping forex brokers, then read our guidelines to get started- However, the price has collapsed without making any significant retracements. Therefore, strong support might lead to a deeper pullback for EUR/USD before the downtrend continues. Notably, the price is near the key 1.618 fib extension level. This and the 1.0751 level will likely be strong enough to trigger a deep pullback. https://www.forexcrunch.com/blog/2023/12/07/eur-usd-outlook-euro-slips-to-3-week-low-on-rate-cut-bets/
