US DOLLAR FORECAST – EUR/USD, USD/JPY, AUD/USD & GOLD
The US dollar, as measured by the DXY index, has surged due to rising US bond yields. The greenback’s advance is further strengthened by Powell’s hawkish comments.
This article provides a technical analysis of EUR/USD, USD/JPY, AUD/USD, and gold prices. It analyzes key levels to keep an eye on in the coming days. Most Read: Gold, Silver Prices Perk Up, Palladium in Freefall, Key Levels for XAU/USD, XAG/USD
The broader US dollar began the day with a subdued tone, but saw a rally in afternoon trading. This was driven by soaring yields following lackluster demand for US government securities at an important Treasury auction. The upward momentum was later amplified by Fed Chair Powell’s hawkish statements during a panel organized by the IMF.
Powell’s comments suggest that the central bank is not entirely convinced that the hiking cycle is over, hinting at another possible hike next month or in January. The article then delves into projections, stating that expectations will remain in a state of flux, with sentiment shifting based on the strength or weakness of data releases. It is urged that traders keep an eye on the economic calendar in the coming days and weeks, with a particular focus on the October consumer price index survey, due out next Tuesday.
In terms of analysts’ projections, headline CPI is forecast to have risen by 0.1% on a seasonally adjusted basis last month, bringing the annual rate down to 3.3% from 3.7% previously. The core gauge is seen increasing by 0.3% monthly, resulting in a yearly reading of 4.3% – unchanged from September.
Powell’s statements and the anticipated inflation data may impact the US dollar, gold, the euro, the Australian dollar, and the yen. The article provides a technical analysis for each of these currency pairs.
For further details and forecasts, the article recommends taking a look at the Q4 trading forecast. Moreover, traders are advised to monitor financial conditions, incoming data, and the central bank’s approach towards inflationary risks in order to make informed trading decisions.
