In anticipation of crucial US inflation data that promises insights into Federal Reserve policy, the US Dollar grapples with a one-week low against major currencies. The disappointment from Q3 GDP figures, revealing a growth rate of 4.9% below market expectations, contributes to the Dollar’s decline. Attention now turns to the US PCE Index for potential market shifts.
Dollar Index (H4)
The Dollar Index faces downward pressure, testing key support levels. MACD signals increasing bearish momentum, while RSI at 32 suggests the potential for further losses. Resistance levels at 102.60 and 103.50, with support at 101.75 and 101.30.
Gold Stages Recovery on Dollar Depreciation
Gold experiences a resurgence as the US Dollar weakens, attracting cautious investors amid subdued market movements and concerns over a downbeat US GDP report. Investors seek the safety of gold in the wake of Dollar depreciation. Gold prices trade higher, breaking above resistance at 2090.00, with potential resistance at 2145.00. Support levels stand at 2045.00 and 1985.00.
GBP/USD showcases resilience despite a dip fueled by the UK inflation rate falling to a two-year low of 3.9%. The pessimistic tone of US economic data provides bullish momentum for GBP/USD. The pair trades higher, rebounding from support, with MACD indicating diminishing bearish momentum and RSI at 53. Resistance levels at 1.2729 and 1.2815, while support levels at 1.2630 and 1.2528.
As markets await the US inflation data, the intricate dance between major currencies unfolds against the backdrop of economic uncertainties, shaping the narrative for the days to come.