Market Fundamental Analysis by RoboForex

[Vlad RF]

EURUSD: Strong US economy and expectations of Trump’s victory exert pressure on the euro

The EURUSD rate slightly declines, remaining within the range. More details in our analysis for 29 October 2024.

EURUSD forecast: key trading points

• Positive US economic indicators continue to exert pressure on the euro
• The increasing likelihood of Donald Trump’s victory in the presidential election supports the US dollar
• Traders are focused on the upcoming releases of crucial economic data, such as US GDP, CPI, and the employment report
• EURUSD forecast for 29 October 2024: 1.0780

Fundamental analysis

The EURUSD rate continues to correct for the fifth consecutive trading session. Buyers have so far managed to maintain the 1.0775 level. In addition to positive economic data supporting the strength of the US economy, the US dollar is bolstered by rising expectations of Donald Trump’s victory in the upcoming US presidential election.

Traders now focus on preliminary US Q3 GDP data due on Wednesday and the core PCE price index for September, a crucial inflation gauge for the Federal Reserve, scheduled for release on Thursday. The US nonfarm payrolls report is due on Friday, potentially increasing market volatility.

Overall, the US dollar remains stable as signs of steady economic growth have reduced expectations of a sharp Federal Reserve interest rate cut. Market participants now believe that after starting the easing cycle with a sizeable 50-basis-point cut in September, the regulator will limit itself to a more moderate 25-basis-point move in November. The market estimates the likelihood of such a reduction at 95%, which, as part of today’s EURUSD forecast, continues to weigh on the euro.

Read this article on RoboForex website - EURUSD Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

Gold (XAUUSD) hit a new all-time high today, hovering above 2,780 USD

XAUUSD prices have completed a correction and are steadily rising, surpassing the previous all-time high of 2,758 USD. A triangle pattern has formed on the instrument chart. More details in our XAUUSD analysis for today, 30 October 2024.

XAUUSD forecast: key trading points

• Market focus: market participants are awaiting the US labour market statistics this week, including the ADP report, nonfarm payrolls, and the unemployment rate
• Current trend: a strong uptrend is underway, with a triangle pattern formed on the chart
• XAUUSD forecast for 30 October 2024: 2,758 and 2,800

Fundamental analysis

XAUUSD quotes continue to trade in an uptrend, reaching another all-time high around 2,790 USD today. A downward correction is complete, and growth is likely to resume. The precious metal appears buoyant, supported by robust demand from central banks and investors.

The current Federal Reserve’s interest rate-cutting cycle, high geopolitical tensions, ongoing conflict escalation in the Middle East, and the upcoming US presidential election in November are all factors strengthening the prices of Gold.

US employment statistics from Automatic Data Processing Inc. (ADP) are scheduled for release during today’s American session. If data exceeds the forecast (+115,000 jobs), the US dollar will receive support, and the XAUUSD pair may enter a local correction again. If data falls short of the forecast, this will drive further growth in the XAUUSD pair.

Read this article on RoboForex website - Gold Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

USDJPY: BoJ left the interest rate at its highest level since 2008

The USDJPY rate has declined, securing below the 152.65 support level. Discover more in our analysis for 31 October 2024

USDJPY forecast: key trading points

• The Bank of Japan left the interest rate at 0.25%, the highest level since 2008
• The US economy grew at a 2.8% annual rate in Q3, slightly below the forecasted 3.0%, with personal consumption and sales figures remaining high
• Investors cautiously await Friday’s US nonfarm payrolls data
• USDJPY forecast for 31 October 2024: 152.40 and 150.80

Fundamental analysis

At its two-day meeting, which concluded on Thursday, the Bank of Japan kept the interest rate at 0.25%, the highest level since 2008. This result aligned with analysts’ expectations that monetary policy would remain unchanged, exerting pressure on the USDJPY rate. This year, the Bank of Japan raised the interest rate twice, in March and July.

BoJ Governor Kazuo Ueda has already warned of increasing uncertainty in the global economy, noting that the regulator has time to thoroughly analyse risks without hastily tightening monetary policy. Traders are now scrutinising information from the BoJ chief’s post-meeting briefing, looking for hints about the timing and pace of further interest rate hikes.

According to the quarterly survey, the Bank of Japan maintains its inflation outlook and expects inflation to remain close to the 2.0% target level in the coming years. The projected core inflation rate, excluding food prices, remains at 2.5%.

Investors are now cautiously awaiting Friday’s nonfarm payroll data and next week’s US presidential election. Meanwhile, the ADP report recorded a surge in private-sector employment in October, indicating labour market resilience. The US economy grew at a 2.8% annual rate in Q3 2024, slightly falling short of the forecasted 3.0%. However, solid growth in personal consumption and high sales figures confirm consumer activity, which may support the US dollar as part of today’s USDJPY forecast.

Read this article on RoboForex website - USDJPY Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

EURUSD undergoes a correction ahead of a key US employment report

The EURUSD rate is falling after rebounding from the 1.0885 resistance level. Find out more in our analysis for 1 November 2024.

EURUSD forecast: key trading points

• US initial jobless claims fell to their lowest level since May, coming in at 216,000
• Traders forecast gains of 113,000 jobs in the employment report
• US personal income rose by 0.3% in September 2024, with spending increasing by 0.5%
• On an annual basis, growth in US personal consumption expenditures slowed to the lowest level since February 2021
• EURUSD forecast for 1 November 2024: 1.0922 and 1.0960

Fundamental analysis

The EURUSD rate declines after rising for four days. Investors are focused on the upcoming US employment report, which is expected to confirm the resilience of the US economy ahead of the Federal Reserve monetary policy meeting and the presidential election.

The US employment statistics for October close the current trading week, and traders expect 113,000 jobs to be created. However, recent natural disasters may affect the final reading, increasing the likelihood of deviation from forecasts. A muted market reaction to the report will help the EURUSD maintain its current trend as part of today’s forecast.

Meanwhile, US initial jobless claims unexpectedly fell to their lowest level since May. The number of Americans who first applied for unemployment benefits decreased by 12,000 to 216,000, while analysts predicted an increase to 230,000 on average.

Additionally, in September 2024, US personal income rose by 0.3% from August, while spending by Americans increased by 0.5%. Last month, the PCE index was up 0.2% compared to the previous month. The annual index growth rate slowed to 2.1%, marking the lowest since February 2021. This indicates potentially easing inflation, which may impact the Federal Reserve’s future monetary policy decisions.

Read this article on RoboForex website - EURUSD Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

USDJPY rose: a crucial week begins

The USDJPY pair is undergoing a correction, with the US dollar retreating ahead of the US presidential election. Find out more in our analysis for 4 November 2024.

USDJPY forecast: key trading points

• The USDJPY pair declines
• Safe-haven assets are in demand this week
• USDJPY forecast for 4 November 2024: 151.00 and 150.80

Fundamental analysis

The USDJPY rate fell to 151.75 on Monday.

The Japanese yen has gained an opportunity to strengthen while the US dollar retreats in anticipation of this week’s US presidential election. The next five business days will be tense, with the US presidential campaign nearing its conclusion and the upcoming US Federal Reserve meeting. The market will require strength and safe-haven assets.

The Federal Reserve is expected to lower the interest rate by 25 basis points.

Last week, the Bank of Japan left its interest rate unchanged at 0.25% per annum. The central bank is pausing a series of adjustments in monetary conditions as it assesses the risks of a political imbalance in Japan. This adds to the uncertainty regarding the country’s fiscal policy. The interest rate may change in January, but several key economic indicators will be released by then.

Read this article on RoboForex website - USDJPY Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

EURUSD awaits the news, with the focus on the US presidential election

The EURUSD pair remains in a consolidation phase. A critical moment is approaching. Find out more in our analysis for 5 November 2024.

EURUSD forecast: key trading points

• The EURUSD pair is consolidating
• Initial, accurate data on the US presidential election will emerge a few days after the vote
• EURUSD forecast for 5 November 2024: 1.0950

Fundamental analysis

The EURUSD rate is hovering around the level of 1.0878 on Tuesday.

The stock market holds varied opinions on who will win the US presidential election. Over the weekend, Donald Trump was the favourite, and the US dollar was rising. Now, support has shifted to Kamala Harris.

The major currency pair will undoubtedly experience increased volatility this week. The only question is its direction. According to stock market consensus, the US dollar could decline by 1-2% if Harris wins, and it may rise significantly if Trump emerges victorious.

The election winner will only be known a few days after Tuesday’s vote. Trump will likely challenge any signs of defeat, as he did in 2020.

Read this article on RoboForex website - EURUSD Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

USDCAD resumed growth: the market is watching the US election results

The USDCAD pair is confidently rising, with the US dollar in demand as the majority of votes favour Trump. More details in our analysis for 6 November 2024.

USDCAD forecast: key trading points

• The USDCAD pair surges
• The market is following the first reports on the US presidential election
• USDCAD forecast for 6 November 2024: 1.3950

Fundamental analysis

The USDCAD rate rose to 1.3921 on Wednesday.

Although the pair declined yesterday evening, the situation changed today with the release of the first US presidential election results. The US dollar is in strong demand as presidential candidate Donald Trump gains more votes than his opponent, Kamala Harris.

Canadian statistics remain off the market’s radar. However, the private sector PMI rose to 50.7 points following a four-month decline. Oil prices also increased after OPEC+ decided to postpone its planned output increase. Although these factors support CAD’s fundamental strength, fortune favours the USD today.

Read this article on RoboForex website - USDCAD Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

AUDUSD recouped mid-week’s losses

The AUDUSD pair is rising on Thursday, with the Aussie supported by the RBA’s stance. More details in our analysis for 7 November 2024.

AUDUSD forecast: key trading points

• The AUDUSD pair halted its rapid decline
• A tough RBA stance helped reduce this week’s losses
• AUDUSD forecast for 7 November 2024: 0.6688

Fundamental analysis

The AUDUSD rate recovered on Thursday, reaching 0.6620.

The Australian dollar has successfully recouped nearly all recent losses, supported by the Reserve Bank of Australia’s hawkish outlook and market optimism over potential measures to stimulate the Chinese economy.

The AUDUSD pair fell by 1.9% yesterday due to pressure from a strong US dollar following Donald Trump’s resounding victory in the US presidential election.

The RBA left the interest rate unchanged this week and signalled that monetary policy would remain restrictive for some time, supporting the AUD position.

Read this article on RoboForex website - AUDUSD Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

Gold (XAUUSD) found support around 2,643 USD

XAUUSD prices declined to 2,643 USD as part of a correction amid the US dollar’s strengthening, driven by the US election. The asset encountered strong demand at this level and is attempting to reverse upwards. More details in our XAUUSD analysis for today, 8 November 2024.

XAUUSD forecast: key trading points

• Market focus: Donald Trump confidently won the US presidential election
• Market focus: the US Federal Reserve lowered the interest rate by 0.25%
• Current trend: a local correction is underway as part of the uptrend
• XAUUSD forecast for 8 November 2024: 2,643 and 2,710

Fundamental analysis

XAUUSD quotes continue to trade within a local correction, after which upward momentum is expected to resume. The decline in Gold prices was due to the growth of the US dollar, supported by Donald Trump’s victory in the US presidential election.

At yesterday’s meeting, the Federal Reserve unanimously decided to lower the interest rate by 0.25%, aligning with market expectations. In its accompanying statement, the US Fed noted that labour market conditions have generally improved, and inflation continues to gradually move towards the 2.0% target.

Read this article on RoboForex website - Gold Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

USDJPY: the yen has a strong chance of strengthening

Stable bank lending and the Bank of Japan’s summary of opinions may support the yen’s strengthening against the US dollar. Discover more in our analysis for 11 November 2024.

USDJPY forecast: key trading points

• Japan’s Bank Lending Rate (y/y): previously at 2.7%, currently at 2.7%
• The Bank of Japan summary of opinions
• Japan’s Economy Watchers Survey: previously at 49.0%, currently at 47.5
• USDJPY forecast for 11 November 2024: 150.55

Fundamental analysis

Japan’s Bank Lending Rate shows the total funds Japanese banks provide to borrowers, including businesses and individuals. The indicator is an important gauge for understanding economic activity, as growth in lending indicates increased spending and investment. The Japanese central bank closely monitors bank lending to regulate monetary policy effectively and stimulate economic growth.

An increase in bank lending volume signals economic recovery, as rising demand for loans reflects confidence in economic prospects.

Fundamental analysis for 11 November 2024 indicates that the lending rate remained at the previous level of 2.7%, which may suggest a stabilisation in Japan’s economy and inflation.

The Bank of Japan’s summary of opinions is a report released after BoJ monetary policy meetings. This document outlines the principal opinions and discussions of the Policy Board members concerning the current economic situation, inflation, and financial conditions in Japan. It provides insight into the Bank of Japan’s assessment of economic risks and potential measures it may implement to stabilise inflation and promote sustainable economic growth.

The summary of opinions is valuable to analysts and investors as it indicates potential changes in Japanese monetary policy.

Japan’s Economy Watchers Survey is a monthly indicator measuring economic sentiment and expectations among representatives from various Japanese business sectors, including retail, transport, and services.

The index is based on surveys of professionals directly involved with consumers, enabling timely observations of changes in demand and public sentiment.

The index consists of two parts: current economic conditions and expectations for the coming months. An increase in the index indicates economic improvement, while a decline signals potential economic challenges. The indicator is widely used to forecast short-term trends in the Japanese economy.

Although the forecast for 11 November 2024 suggested the index could fall to 47.2, the actual reading was 47.5. While this exceeded the forecast, it was below the previous level. Nevertheless, the actual result may be viewed positively for the Japanese yen.

Read this article on RoboForex website - USDJPY Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

USDCHF is on the rise: the US dollar leaves no alternatives

The USDCHF pair is rising, with investors favouring the US dollar. More details in our analysis for 12 November 2024.

USDCHF forecast: key trading points

• The USDCHF pair has gained significantly
• The SNB may lower the interest rate by 50 basis points at once at its December meeting
• USDCHF forecast for 12 November 2024: 0.8850

Fundamental analysis

The USDCHF rate is rising to 0.8811.

In this pair, as in USDJPY, the strong market bias towards the US dollar leaves the second currency with little support. Investors believe that the protectionist policies promoted by the administration of the elected US President, Donald Trump, will drive up inflation. This will force the Federal Reserve to keep interest rates higher than expected, favouring the USD.

Switzerland’s inflation eased to a three-year low, reaching 0.6% in October.

This data has heightened expectations of an interest rate cut from the Swiss National Bank at its December meeting, with borrowing costs potentially reduced by 50 basis points at once.

Read this article on RoboForex website - USDCHF Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

USDCAD: the pair continues to reach new highs

The latest data from the US indices suggest that the US dollar is likely to strengthen further. Discover more in our analysis for 13 November 2024.

USDCAD forecast: key trading points

• The Thomson Reuters/Ipsos Primary Consumer Sentiment Index: previously at 48.41
• US core Consumer Price Index (CPI) (m/m) in October: previously at 0.3%, projected at 0.3%
• US core Consumer Price Index (CPI) (y/y): previously at 3.3%, projected at 3.3%
• US CPI (m/m): previously at 0.2%, projected at 0.2%
• USDCAD forecast for 13 November 2024: 1.4040

Fundamental analysis

The Thomson Reuters/Ipsos Primary Consumer Sentiment Index measures consumer sentiment based on a target group survey. The index fell to 48.41 last month, indicating negative consumer sentiment. Given that the index has declined over the past three months, the forecast for 13 November 2024 may be unfavourable for the Canadian dollar as the actual reading may fall again.

The CPI reflects changes in consumer prices of goods and services and is a key indicator for the direction of purchases and US inflation. Readings below the forecast are considered negative for the US dollar, while stronger-than-expected figures are considered positive.

The CPI is forecast to remain unchanged at 0.3% month-on-month and 3.3% year-on-year. Expectations that the estimates will align with actual data are low so far. A better-than-expected performance in US fundamental indicators could further boost the USDCAD rate.

Fundamental analysis for 13 November 2024 indicates that the US CPI (m/m) is projected to remain at last month’s level of 0.2%. While such figures are encouraging for the national currency, they are not yet indicative of a significant positive shift.

Read this article on RoboForex website - USDCAD Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[Vlad RF]

EURUSD: the euro falls along with the eurozone’s industrial production

The decline in the eurozone’s industrial production and the stagnation of GDP growth may further weaken the euro against the US dollar. Discover more in our analysis for 14 November 2024.

EURUSD forecast: key trading points

• Eurozone Q3 GDP (y/y): previously at 0.9%, projected at 0.9%
• Eurozone industrial production (m/m): previously at 1.8%, projected at - 1.3%
• US continuing jobless claims: previously at 1,892 thousand, projected at 1,880 thousand
• EURUSD forecast for 14 November 2024: 1.0540 and 1.0505

Fundamental analysis

GDP reflects the total value of all goods and services produced in a country; considering only end products, excluding raw material costs.

Fundamental analysis for 14 November 2024 shows that eurozone GDP may remain around 0.9%, consistent with the previous period. GDP has demonstrated modest growth over the past few months, suggesting that stronger-than-forecast data could support the euro.

European industrial production reflects the eurozone’s total output, including utility services, industrial plants, and mines. The previous reading was 1.8%, and the forecast for 14 November 2024 suggests a decline to -1.3%. Industrial production in the eurozone continues to contract. Negative readings could be due to expensive energy tariffs, forcing companies to reduce production or even shut down, further adding negative pressure on the euro.

US continuing jobless claims reflect the number of recurring claims for unemployment benefits. Fundamental analysis for 14 November 2024 indicates that claims may decrease to 1,880 thousand. Compared to the previous period, the forecast appears favourable for the US dollar. The actual reading may differ from expectations, but if it exceeds the last figure, it will support the US dollar.

Read this article on RoboForex website - EURUSD Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[kohalmiz]

AUD found support in statistics. Overview for 21.03.2024

The Australian dollar has shifted to an upward trend against the US dollar. The current AUDUSD exchange rate stands at 0.6621.

The Aussie received significant support from the Australian employment market statistics. The number of jobs increased by 116.5 thousand, surpassing the forecasted rise of 40.0 thousand. The unemployment rate in February dropped to 3.7% compared to the expected 4.0%.

Earlier this week, the Reserve Bank of Australia kept the interest rate at 4.35% per annum. It has remained stable for the third consecutive meeting. The current interest rate is the highest in 12 years.

In its commentary, the RBA refrained from signalling further interest rate increases. This shows that the RBA is confident in the inflationary outlook and sees evidence of price cooling.

Additionally, the AUD benefits from the decline in the US dollar.

Fundamental analysis for other instruments can be found in the section "Forex Forecasts and Analysis" on our website.

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

Welldone ,mate.

 

[Vlad RF]

USDJPY develops a rally: the yen is again a victim of market developments

The USDJPY pair continues its ascent as investors assess Japan’s GDP data. Discover more in our analysis for 15 November 2024.

USDJPY forecast: key trading points

• The USDJPY pair moves in line with the rally
• Investors assess the latest Japanese GDP statistics
• USDJPY forecast for 15 November 2024: 157.15

Fundamental analysis

The USDJPY rate surged to 156.38 on Friday.

The market is scrutinising today’s statistics. Japan’s economy grew by 0.2% quarter-on-quarter in Q3 2024, a significant slowdown compared to the 0.5% growth in Q2. Nevertheless, this marks the second consecutive quarter of positive growth. On a year-on-year basis, the economy expanded by 0.9%, significantly below the 2.2% level of Q2.

Uncertainty remains high regarding the normalisation of the Bank of Japan’s policy. Mixed statistics and recent political developments suggest an even gloomier outlook. Making critical decisions under such conditions proves challenging.

The USDJPY forecast is so far in favour of the US dollar.

Read this article on RoboForex website - USDJPY Forecast

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team