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Firm Ground for Euro as Inflation Softens, Gold Retreats, Powell Speech Eyed

Firm Ground for Euro as Inflation Softens, Gold Retreats, Powell Speech Eyed

Firm Ground for Euro as Inflation Softens, Gold Retreats, Powell Speech Eyed. The Euro seeks stability amidst softened inflation and Eurozone data releases, while investors keep a close eye on Powell’s upcoming speech. GBP/USD finds itself in a state of flux awaiting US job statistics and Federal Reserve perspectives. Meanwhile, gold retraces from historic peaks, with all eyes on U.S. economic indicators for the next move in the market

EUR/USD Seeks Traction Below 1.0800 After Eurozone Data

The EUR/USD exchange rate remains in a narrow trading range below the significant threshold of 1.0800 today. Soft inflation figures from the Eurozone have capped the Euro’s ascent, following an announced retreat of the annual Harmonized Index of Consumer Prices (HICP) to 2.4% in March.

Investors had their eyes set on Eurostat’s release of preliminary inflation data, which holds the power to sway European Central Bank (ECB) decisions. Though market players anticipate the HICP to post a steady 2.6% yearly rise in March, matching the prior month, any unexpected downturn could become a catalyst for an April rate cut, contrary to the ECB’s indicated preference for June.

Take keen notice later when the ADP Employment Change data hits the spotlight in the US corridor, projecting a 148K rise in March. A tumble to 100K or less may spur a USD selloff, with immediate market reaction possibly ensue.

Adding to the day’s suspense, the ISM Services PMI awaits its curtain call. A repeat performance of the ISM Manufacturing PMI survey, which recently heightened USD appeal with stronger-than-anticipated results and a surged Prices Paid Index, could see a similar market response.

EUR/USD Intraday:supported by a rising trend line.Up to 1.0885-1.1015

Asset: EUR/USD

Recommendation: BUY

Entry Price (Pivot): 1.0690

Target and Take Profit levels (TP): 1.0885 and 1.1015

Risk: 2% per trade

Period: Intraday

Market: Spot Market

Comments: The RSI lacks downward momentum

Firm Ground for Euro as Inflation Softens, Gold Retreats, Powell Speech Eyed

GBP/USD Struggles for Direction Awaiting US Job Statistics and Federal Reserve Perspectives

Currently treading water just below the 1.2600 level, the GBP/USD pairing is witnessing a standstill among traders eyeing the forthcoming U.S. jobs data and Federal Reserve officials’ insights.

Despite an overnight recovery, the collective breath is held for fresh releases from the US economic arena to validate any momentum. The subdued activity in the Dollar, bereft of any concrete propelling events, hints at a corrective blip within a broader scenario.

What may tip the scales in the afternoon is the latest ADP Employment Change figures. The anticipated 148K upswing in private sector jobs could prop the dollar, denting Cable’s gains if prior estimates are surpassed. Additionally, the ISM Services PMI and its inflation perceptions will certainly inform the odds of the Fed swaying from its current trajectory come June.

GBP/USD Intraday: the upside prevails.Up to 1.2800-1.2890

Asset: GBP/USD

Recommendation: BUY

Entry Price (Pivot): 1.2500

Target and Take Profit levels (TP): 1.2800 and 1.2890

Risk: 2% per trade

Period: Intraday

Market: Spot Market

Comments: The RSI lacks downward momentum

Firm Ground for Euro as Inflation Softens, Gold Retreats, Powell Speech Eyed

Gold Price Retreats from Record Heights, Eyes Locked on U.S. Economic Indicators

With gold prices having peaked at an all-time high, the precious yellow metal’s trajectory pivoted, encountering a negative bias amid an expectation-fueled U.S. bond yield boost.

XAU/USD’s modest retreat is underpinned by anticipation of the Federal Reserve holding stiff on interest rate slashes—diminishing thrice this year seems increasingly dubious as U.S. economic resilience glistens in recent data.

Yet, with geopolitical tempests stemming from the Russia-Ukraine conflict and turmoil in the Middle East, gold’s allure of security remains untarnished. This enduring rally, juxtaposed with the rippling aftereffects of Taiwan’s seismic shock, positions the metal in a unique stead where a minor pullback may be but a blip in its continued ascension.

Gold Intraday: bullish bias above 2258.00.Up to 2302.00-2320.00

Asset: Gold

Recommendation: BUY

Entry Price (Pivot): 2258.00

Target and Take Profit levels (TP): 2302.00 and 2320.00

Risk: 1% per trade

Period: Intraday

Market: Spot Market

Comments: The RSI calls for a bounce

Firm Ground for Euro as Inflation Softens, Gold Retreats, Powell Speech Eyed

Conclusion

Market partakers are set for a day of meticulously dissecting incoming data points. From the established retreat in Eurozone inflation potentially shaping ECB actions to the projected resilience in the U.S. labor sector and services performance, reasons for staying alert abound. As these narratives unfold, be sure to position yourself thoughtfully at the intersection of empirical developments and emerging market sentiment.

Author

  • Phyllis Wangui

    Phyllis Wangui is a Financial Analyst and News Editor with qualifications in accounting and economics. She has over 20 years of banking and accounting experience, during which she has gained extensive knowledge of the forex, stock news, stock market, forex analysis, cryptos and foreign exchange industries. Phyllis is an avid commentator on these topics and loves to share her insights with others through financial publications and social media platforms.