The GBPCAD pair has recently shown signs of recovery, breaking back above a crucial trendline after a brief dip on October 3. This movement suggests a potential new uptrend, with the pair likely to continue its upward trajectory. Similarly, USDCAD has reversed its previous downtrend, establishing a new bullish trend since September 25. The pair’s next resistance level is around 1.3789, with a potential to reach 1.3850. Investors might consider entering long positions around the support zone of 1.3650 to 1.3670.
EURAUD has been consolidating around the 1.62 level after rising from a low of 1.6000. The formation of a bullish Three White Soldiers candlestick pattern indicates a possible trend reversal. On the other hand, EURGBP found support near 0.8350 following the release of the ECB’s Monetary Policy Meeting Accounts. Despite expectations of rising inflation, the Euro’s outlook remains weak due to declining inflation data and economic growth concerns, leading to anticipated further rate cuts by the ECB.
GBPUSD has been trading within a narrow range of 1.3060 to 1.3100, despite underlying negative trends. A sustained break below 1.30 could lead to a further decline to 1.27 or 1.28. Meanwhile, EURUSD experienced volatility near 1.0930 after the US CPI report for September indicated higher-than-expected inflation. Despite this, the Federal Reserve is expected to continue with its rate cut plans, as recent comments from Fed officials suggest confidence in managing inflation.
The JPY has faced significant volatility, particularly after the Bank of Japan’s unexpected rate hike in July. The unwinding of the JPY-funded carry trade has kept the JPY weak against the USD. Over the medium term, USDJPY is expected to trend lower as Japan’s economy gradually moves away from deflationary pressures. Optimism is growing for strong wage deals in the spring, which could boost consumption and profitability for domestic firms. Additionally, changes in governance at the stock exchange and government efforts to promote investment are reshaping Japan’s economic landscape.
In conclusion, the recent movements in these currency pairs highlight the complex interplay of economic indicators, central bank policies, and market sentiment. While some pairs like GBPCAD and USDCAD are showing signs of new uptrends, others like EURGBP and EURUSD are influenced by inflation data and central bank actions. The JPY’s volatility underscores the ongoing adjustments in Japan’s economic policies. Investors should stay informed about these developments to navigate the dynamic forex market effectively.
