Market Analysis: EUR/USD Eyes Fresh Increase, USD/JPY Trims Gains
EUR/USD started a fresh decline from 1.1200. USD/JPY is correcting gains and might test the 144.15 support in the near term.
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EUR/USD started a fresh decline from 1.1200. USD/JPY is correcting gains and might test the 144.15 support in the near term.
Yesterday, the Bank of Canada reduced its key interest rate by 25 basis points to 4.25%.
The first trading week of September is packed with significant macroeconomic data releases.
According to Reuters, it was announced on Friday that Shigeru Ishiba, known for his tough stance on interest rates, will become Japan's next Prime Minister.
The end of the current trading week could bring quite a few surprises for market participants.
According to the NZD/USD chart, the exchange rate has reached 0.635 New Zealand dollars per US dollar today, its highest level since December 2023.
The Fed's rate cut and a series of weak macroeconomic data from the US have contributed to the resumption of the downward trend for the USD in major currency pairs.
AUD/USD surged above the 0.6800 and 0.6850 levels. NZD/USD is also rising and might aim for more gains above 0.6300.
According to todays daily chart of EUR/GBP: The rate is around £0.832 per euro the lowest since April 2022. The RSI indicator has dropped into oversold territory.
GBP/USD started a fresh increase above the 1.3200 zone. USD/CAD declined and now consolidates below the 1.3600 level.
As shown by the USD/ZAR chart, on 19th September the price fell below the 17.400 level for the first time since February 2023.
The Federal Reserve surprised the market yesterday by cutting the dollar rate by 0.5%, with expectations that a similar reduction might occur by the end of the year.
As we have frequently noted, a rate cut by the Federal Reserve seemed inevitable. Market participants debated whether the reduction would be 0.5% or 0.25%
EUR/USD started a fresh increase above the 1.1050 resistance. USD/CHF declined and now struggling below the 0.8500 resistance.
Traders using FXOpen can now incorporate the EUR/ZAR currency pair into their strategies.
As shown on the USD/JPY chart, today's candle low has dropped below the psychological level of 140 yen per dollar.
The USD/JPY chart shows the rate has fallen below its 5 August low.
AUD/USD declined below the 0.6720 and 0.6700 support levels. NZD/USD is also moving lower and might struggle to recover above 0.6200.
The US labour market data released on Friday caused sharp fluctuations in major currency pairs.
The initial reaction to the positive UK labour market news was a bullish impulse for the pound, with GBP/USD rising from around 1.3080...
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