Impact of Strong US GDP Growth on Euro, Pound, Yen, and Australian Dollar
Economic Calender:
US GDP Growth Rate QoQ (2nd Estimate Q2 2024): Surged to 3%, significantly higher than the previous 1.4% and above the forecast of 2.8%.
Japan Consumer Confidence (August 2024): Remained unchanged at 36.7, matching last month’s figure and falling short of the expected 36.9.
Germany Inflation Rate YoY (Preliminary for August 2024): Decreased to 1.9%, down from 2.3% in July, indicating easing inflationary pressures.
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The EUR/USD pair is currently trading at 1.10800, down 0.40% for the day. The pair has been under pressure as the euro struggles amidst weaker-than-expected German inflation data, which came in at 1.9%, down from 2.3% last month. The euro is also facing resistance at key technical levels, with RSI indicating a bearish sentiment. A significant support level lies around 1.0640, and any break below this could see the pair heading further south(Be Invested. Trade globally online. TradingView).
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GBP/USD is trading slightly lower at 1.31801, down 0.10% today. The pair remains range-bound, with strong resistance around 1.2655, making it difficult for bulls to push higher. The market is waiting for a clear breakout from this range, which could either lead to a move toward 1.30 if it breaks upward or test the lower levels near 1.2150 if the support gives way, Be Invested. Trade globally online.).
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USD/JPY is currently at 144.883, up 0.31% for the day. The yen continues to weaken against the dollar, with recent movements indicating a bearish sentiment for the yen. The pair could see further upside if it breaks above the 145.00 level, with strong resistance around 145.50(DailyFX,TradingView).
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AUD/USD has shown some strength, trading at 0.68066, up 0.35% for the day. The pair is currently holding above key support levels but faces significant resistance around 0.7267, where several moving averages are clustering. A break above this could continue the uptrend, while a failure to sustain above might lead to a reversal toward 0.7055( Forex Factory, TradingView).
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NZD/USD: is trading at 0.62672, up 0.33% today. Despite this rise, the pair is showing signs of potential downside, having been rejected at key resistance levels around 0.6570. RSI is indicating negative sentiment, and if the pair cannot break above 0.6580, it may test support at 0.6354 in the near term(Be Invested. Trade globally online.).
Commodities:
- Oil: Brent Crude is trading at $78.612 per barrel, down slightly by 0.05% today. WTI Crude is at $74.532, marginally up by 0.02%. The market remains cautious as traders balance concerns over global demand with supply constraints.
- Gold: Gold prices have risen to $2,522.96 per ounce, up by 0.59% today. The strong US GDP data has not deterred investors from seeking safety in gold, especially with inflation concerns still lingering.
- Natural Gas: Prices are up slightly by 0.24%, trading at $2.1020 per MMBtu. The market is watching weather patterns and energy demand closely as we approach the colder months.
Political News:
US: The strong GDP figures support the current administration’s economic policies. The political debate is now shifting towards how to sustain this growth amidst global uncertainties.
UK: Political focus remains on the Bank of England’s next move, as inflation is still a concern. Any hints of policy changes are likely to impact the pound further.