Gold leaps to $2,413 while EUR/USD and GBP/USD climb amid ECB data and UK economic optimism. Discover the next moves in our detailed forecast.
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- The EUR/USD pair saw a modest increase to 1.0869, reacting to the ECB's inflation data which confirmed expectations at 2.4% and core at 2.7% year-over-year.
- GBP/USD appreciated to 1.2692, supported by MPC Member Mann's comments and stronger PPI data from New Zealand, hinting at rising inflation pressures.
- Despite a significant boost in Foreign Securities Purchases, the USD/CAD pair declined slightly by 0.08% to 1.3607, showing some resilience in the Canadian dollar.
Currency Movements Overview
On May 17th, the EUR/USD pair showed a slight gain, rising by 0.04% to 1.0869, as traders absorbed the latest ECB inflation data, which aligned with expectations at 2.4% year-over-year and 2.7% year-over-year for the core. The USD/JPY pair weakened by 0.08% to 155.50, with market participants shifting their focus to upcoming economic data and the Bank of Japan's monetary policy stance.
Meanwhile, the GBP/USD strengthened by 0.21% to 1.2692, buoyed by comments from MPC Member Mann and stronger-than-expected Producer Price Index (PPI) data from New Zealand, hinting at potential inflationary pressures. The USD/CAD saw a minor decline, trading down 0.08% to 1.3607, despite a significant jump in Foreign Securities Purchases to 14.37 billion CAD, which provided some support to the Canadian dollar. The AUD/USD edged up by 0.15% to 0.6687, as traders looked ahead to key data releases.
The Dollar Index saw a slight increase, trading at 104.375, up 0.03%, reflecting the broader strength of the US dollar amidst mixed economic signals.
In the commodities market, Natural Gas experienced a significant surge of 4.25%, reaching $2.601, driven by higher-than-expected demand forecasts. Gold gained 1.16%, climbing to $2,413.20, as investors turned to safe-haven assets amid global uncertainties. Silver continued its strong performance, rising by 3.54% to $30.933, supported by both industrial demand and safe-haven buying.
In the cryptocurrency market, BTC/USD saw a modest increase of 0.17%, trading at $66,532.00, as the digital asset market continued to exhibit stability.
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Economic Events Recap – May 17, 2024
Today's economic data releases had a significant impact:
Early morning releases highlighted the New Zealand economy, where the PPI Input rose by 0.7% (previous: 0.9%, forecast: 0.6%) and PPI Output increased by 0.9% (previous: 0.7%, forecast: 0.5%). In China, new home prices fell by 0.58%, while industrial production surged by 6.7% year-over-year (previous: 4.5%, forecast: 5.5%).
Retail sales in China grew by 2.3% year-over-year (previous: 3.1%, forecast: 3.7%), and fixed asset investment rose by 4.2% year-to-date (previous: 4.5%, forecast: 4.6%). China's unemployment rate improved to 5.0% (previous: 5.2%, forecast: 5.2%).
Midday to evening releases saw GBP MPC Member Mann speaking, and in the Eurozone, the Final Core CPI matched expectations at 2.7% year-over-year, with the Final CPI also meeting expectations at 2.4% year-over-year. In Canada, foreign securities purchases jumped significantly to 14.37 billion CAD (previous: -4.28 billion CAD, forecast: 3.51 billion CAD).
In the US, the Conference Board Leading Index fell by 0.6% month-over-month (previous: -0.3%, forecast: -0.3%), while speeches from FOMC Members Waller and Daly provided additional insights into future monetary policy directions.
Looking ahead, keep an eye on upcoming economic releases and speeches from Federal Reserve officials, which could provide further guidance on market directions and potential rate adjustments. Stay informed and manage your trades wisely.
Gold (XAU/USD) Price Forecast: Technical Outlook
In today’s technical analysis of the Gold Spot U.S. Dollar, observed on the 4-hour price chart, we note a significant pivot point at $2,396, represented by the green line. Currently, the immediate resistance levels are found at $2,398, $2,408, and $2,420 respectively. Support levels are distinctly placed at $2,375, $2,358, and $2,334.
The Relative Strength Index (RSI) stands at 66.96, signaling that while the market is nearing overbought territory, there is still potential for upward movement before reaching extremity.
Gold Price Chart - Source: Tradingview
The 50-day Exponential Moving Average (EMA) at $2,358 reinforces this bullish outlook, suggesting a stable upward trend.
Conclusion: Considering the current technical setup, a strategic entry for buyers would be just above the pivot at $2,396. For those entering trades based on this analysis, a target of $2,420 is advisable, with a stop loss set at $2,375 to mitigate potential risks.
Trading Signal:
- Entry Price: Buy Above $2,396
- Take Profit: $2,420
- Stop Loss: $2,375
Start Trading Gold (XAU/USD) Today
EUR/USD Price Forecast: Technical Outlook
On the 4-hour chart for the EUR/USD, the current trading activity is centered around a pivot point at $1.08559, indicated by the green line. The immediate resistance levels are placed at $1.08804, $1.09316, and $1.09334 respectively. On the downside, support is found at $1.08216, $1.08131, and $1.08121.
The Relative Strength Index (RSI) is at 68.88, nearing the overbought threshold, which suggests caution as the pair approaches higher price levels. The 50-day Exponential Moving Average (EMA) aligns at $1.08121, supporting the overall bullish momentum observed in recent sessions.
EUR/USD Price Chart - Source: Tradingview
Conclusion: Given this configuration, entering a buy limit order at $1.08559 seems prudent, targeting an exit at $1.09334 for a potential profit. A stop loss at $1.08216 would protect the trade against unexpected downward movements, aligning risk management with current technical signals.
Trading Signal:
- Entry Price: Buy Limit 1.08559
- Take Profit: 1.09334
- Stop Loss: 1.08216
Start Trading AUD/USD Today
GBP/USD Price Forecast: Technical Outlook
The GBP/USD, displayed on a 4-hour chart, indicates a crucial pivot point at $1.26611, as highlighted by the green line. Above this level, the immediate resistance is found at $1.27000, followed by $1.27100, and a stronger resistance at $1.27581. Below the pivot, support is initially located at $1.26086, then at $1.25600, and further down at $1.25469.
The Relative Strength Index (RSI) is currently reading 63.47, suggesting growing bullish momentum without yet reaching overbought conditions. The 50-day Exponential Moving Average (EMA) at $1.25469 further supports this bullish sentiment.
GBP/USD Price Chart - Source: Tradingview
Conclusion: In this setting, entering a buy order above the pivot point at $1.26611 is advisable, aiming for a take profit at $1.27360, with a stop loss set at $1.26086 to protect the position.
Trading Signal:
- Entry Price: Buy Above 1.26611
- Take Profit: 1.27360
- Stop Loss: 1.26086
Start Trading GBP/USD Today
We hope this brief helps you understand today’s market movements. If you have any questions or need further clarification, feel free to reach out. Subscribe to FlowBroker’s daily insights and updates. Happy trading!
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