Dollar Rally Gains Momentum as European Majors Falter
| Action Insight Mid-Day Report 7-29-24 |
Dollar Rally Gains Momentum as European Majors Falter |
Dollar's rally is gaining significant traction today, as major European currencies face increasing selling pressure. The break of last week's lows in both EUR/USD and GBP/USD pairs suggests that the greenback's rise is poised to extend further in the near term. However, the sustainability of this rally will largely depend on market reactions to critical upcoming events, including FOMC rate decision and pivotal economic indicators like ISM manufacturing index and non-farm payrolls. Investors are keenly anticipating Fed's next moves, with expectations high that Fed will signal impending rate cuts in September. Moreover, there is growing speculation that Fed might indicate the openness to implement back-to-back rate cuts in September, November, and December. However, if Fed Chair Jerome Powell adopts a more cautious tone, it could lead to investor disappointment, resulting in a decline in stock markets and a stronger Dollar as a safe-haven asset... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0843; (P) 1.0855; (R1) 1.0869; More..... EUR/USD's fall from 1.0947 resumed by breaking 1.0825 temporary low and intraday bias is back on the downside. Sustained break of 55 D EMA (now at 1.0815) will argue that whole rebound from 1.0601 has completed with three waves up to 1.0947. Deeper decline should then be seen to 1.0601/0665 support zone next. Nevertheless, break of 1.0869 will bring retest of 1.0947 resistance instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 08:30 | GBP | M4 Money Supply M/M Jun | 0.50% | 0.20% | -0.10% | | 08:30 | GBP | Mortgage Approvals Jun | 60K | 60K | 60K |
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