Market News

US Dollar Outlook: Market Focus on PCE, EUR/USD, USD/JPY

US Dollar PCE EUR/USD USD/JPY

Explore the US Dollar outlook, PCE data impact, and technical analysis on EUR/USD and USD/JPY setups in this market forecast.

The US dollar, measured by the DXY index, displayed minimal movement on Monday, hovering around the 103.45 mark. However, upcoming high-impact events, such as the release of PCE data, ISM PMI, and a speech by Fed Chair Powell, are expected to inject increased volatility into the market later in the week.

Traders anticipate a shift from the FOMC’s tightening phase to a potential easing cycle in 2024. Confidence in forthcoming rate cuts relies on data revealing a decline in price pressures and a slowdown in economic activity. Thursday’s release of BEA’s personal income and outlay data will be crucial for assessing the economic outlook, with forecasts suggesting a notable slowdown in private spending and a slight decline in core PCE.

US Dollar Outlook: Market Focus on PCE, EUR/USD, USD/JPY

The Institute for Supply Management will follow with November manufacturing activity figures the next day. Despite anticipating a modest increase, the goods-producing sector may continue to experience a recession.

Any signs of softer inflation and economic slowdown could weigh on the US dollar, prompting a dovish reassessment of interest rate expectations. Fed Chair Powell’s speech on Friday at Spelman College in Atlanta holds significance, as any hints of hawkishness could drive a rally in the US currency.

EUR/USD Technical Analysis: EUR/USD has surged approximately 3.5% this month, nearing the resistance at 1.0956, corresponding to the 61.8% Fibonacci retracement of the July/October decline. While breaking this barrier may be challenging given the euro’s overbought state, a successful breakout could pave the way for a rally towards 1.1080 and 1.1275, the 2023 peak.

A potential downward reversal could lead to a test of critical support at 1.0840, with further weakness targeting the 200-day SMA around 1.0760 and the 50-day SMA near 1.0665.

USD/JPY Technical Analysis: USD/JPY made a substantial rebound late last week but faced resistance near the 50-day simple moving average, currently trading below 149.00. If losses intensify, the analysis identifies initial support near 147.25, with further downside potential extending toward the 100-day SMA and the 146.00 level. Alternatively, resuming the uptrend may encounter resistance at 149.70, with a breakout potentially leading to a rally towards 150.90 and the psychological 152.00 level.

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Related Articles

US Economic Resilience Boosts Dollar: Unemployment Claims Surprise Markets

US unemployment claims fall below forecasts, indicating labor market resilience; robust data...

Market Focus: Analyzing Gold, EUR/USD, and USD/JPY Trends

Gold dropped, EUR/USD declined, and USD/JPY rose, prompting scrutiny of technical indicators...

Gold Surges to New Record High Amid Market Turbulence

Gold reached a new record high, driven by safe-haven trades following the...

Fed’s Barr and Jefferson: High Interest Rates Here to Stay

Federal Reserve Governor Michael Barr reiterated interest rates will stay high until...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

US Economic Resilience Boosts Dollar: Unemployment Claims Surprise Markets
Market News

US Economic Resilience Boosts Dollar: Unemployment Claims Surprise Markets

US unemployment claims fall below forecasts, indicating labor market resilience; robust data strengthens the dollar and impacts global currencies and commodities.

Market Focus: Analyzing Gold, EUR/USD, and USD/JPY Trends
Market News

Market Focus: Analyzing Gold, EUR/USD, and USD/JPY Trends

Gold dropped, EUR/USD declined, and USD/JPY rose, prompting scrutiny of technical indicators for future trends.

Copyright © 2023 Forex Prop News. All Rights Reserved.