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EURUSD is in a consolidation phase following a sharp decline: the market is too nervous

The euro hit a new low before recovering. Investors are observing signs of a slowdown in European economies. Find out more in our analysis for 25 November 2024.

EURUSD forecast: key trading points

  • The EURUSD pair reached a new low and recovered
  • Investors expect a swift reduction in ECB interest rates to support weak economies
  • EURUSD forecast for 25 November 2024: 1.0500 and 1.0414

Fundamental analysis

The EURUSD rate is hovering around 1.0476 on Monday after dropping to 1.0331 earlier.

A rather gloomy business survey triggered the euro’s decline, which revealed a contraction in the two largest European economies – France and Germany – in November. The market believes that the re-election of Donald Trump as US president will further weaken the already fragile European economy. Potential import duties could hurt Germany’s export-oriented economy. These risks are significant, putting substantial pressure on the EUR rate.

As a result, the market is betting that the ECB will lower interest rates more aggressively to address the economic weakness. At the same time, the Federal Reserve is expected to take a more cautious approach. An increase in the interest rate differential will make the euro less appealing, boosting demand for dollar-dominated assets.

RoboForex Market Analysis & Forex Forecasts

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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Swiss franc declines: markets again favour the US dollar

The USDCHF pair shows moderate gains with accelerated growth potential. Find out more in our analysis for 26 November 2024.

USDCHF forecast: key trading points

  • The USDCHF pair is poised for growth
  • The SNB prioritises low inflation
  • USDCHF forecast for 26 November 2024: 0.8815

Fundamental analysis

The USDCHF rate is hovering around 0.8863.

The Swiss franc recently fell to its mid-July 2024 low against the US dollar due to the rapid strengthening of the US currency. Strong expectations persist in the market that the Federal Reserve will slow the pace of interest rate cuts due to robust economic data. Additionally, market participants are overly cautious, given the significant impact of US President-elect Donald Trump’s protectionist policies.

The Swiss National Bank’s inflation target ranges between 0% and 2%. The SNB intends to prioritise maintaining low inflation as the foundation for its monetary policy.

Annual inflation in Switzerland fell for the third consecutive month in October, reaching 0.6%, marking its lowest level since June 2021.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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USDCAD: pressure on the Canadian dollar intensifies

The USDCAD rate strengthens despite yesterday’s rebound from the key resistance level. Discover more in our analysis for 27 November 2024

USDCAD forecast: key trading points

  • The US Federal Reserve noted uncertainty in economic data, which complicates interest rate decisions
  • The Bank of Canada is considering further rate cuts; however, the chances of a 50-basis-point cut have decreased due to rising inflation
  • Canada’s core inflation grew to 2.6% in October, exceeding expectations
  • Canada’s wholesale sales increased by 0.5% in October but fell short of forecasts
  • USDCAD forecast for 27 November 2024: 1.4011

Fundamental analysis

The USDCAD rate has risen for the fourth consecutive trading session, showing a steady bullish trend. Buyers are likely preparing to retest the crucial 1.4110 resistance level. The Canadian dollar fell to 2020 lows after Donald Trump threatened to raise Canadian import tariffs by 20%.

The Federal Reserve emphasised the difficulty of making decisions amid uncertainty in evolving data and the impact of a neutral interest rate. The policy remains dependent on economic trends, so interest rates are expected to remain elevated if inflation stays steady and be reduced if the labour market weakens. Against this backdrop, the likelihood of a Federal Reserve rate cut in December rose to 62.8% from 55.9% a week ago.

The Bank of Canada is poised to lower the interest rate next month. However, the likelihood of a 50-basis-point cut decreased after the release of inflation data. Core inflation, the gauge preferred by the Bank of Canada, rose to 2.6% in October from 2.4% in September, exceeding forecasts. According to today’s USDCAD forecast, lower expectations of an aggressive Bank of Canada rate cut could limit the potential for further US dollar strength.

Meanwhile, Canada’s wholesale sales increased by 0.5% month-on-month in October, following a 0.8% rise in September, but missed the forecast of 0.9%. The growth was partly due to increased sales in the automotive sector, including spare parts and accessories.

RoboForex Market Analysis & Forex Forecasts

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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USDJPY is under pressure amid expectations of a BoJ interest rate hike

The USDJPY rate is recovering after falling for two days. Discover more in our analysis for 28 November 2024.

USDJPY forecast: key trading points

  • The Japanese yen has strengthened by over 2.6% in the past two days due to expectations of a monetary policy tightening by the BoJ
  • The Bank of Japan’s chief hinted at the likelihood of a December interest rate hike to support the yen
  • Market expectations of a 25-basis-point rate hike in Japan stand at 60%
  • Analysts expect Tokyo’s core CPI to rise to 2.3% in October
  • USDJPY forecast for 28 November 2024: 152.90

Fundamental analysis

The USDJPY rate rises following the bears’ failure to secure a position below the 151.25 support level. The Japanese yen has strengthened by more than 2.6% in the past two days due to expectations that the BoJ may raise the interest rate as early as next month. The US dollar is under additional pressure from a potential Federal Reserve rate cut in December. In addition, key US inflation data aligned with market expectations, signalling no changes in the Fed’s monetary policy.

BoJ Governor Kazuo Ueda had earlier referred to the likelihood of a December interest rate hike, citing the need to support the yen. Market players expect a 25-basis-point rate hike in Japan with a 60% probability, well above the 50% recorded a week ago. Most analysts share these expectations.

Investors are also eagerly awaiting Friday’s release of Japan’s inflation data, which may affect the BoJ’s further actions. Tokyo's core CPI is projected to rise to 2.3% in October from 1.8%, heightening expectations of monetary policy tightening. Against this backdrop, today’s USDJPY forecast shows that the Japanese yen will likely strengthen further.

RoboForex Market Analysis & Forex Forecasts

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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Gold (XAUUSD) is up, rising above 2,650 USD

This week, XAUUSD prices received support from buyers at the 2,600 USD level and reversed upwards, with growth likely to continue. More details in our XAUUSD analysis for today, 29 November 2024.

XAUUSD forecast: key trading points

  • Market focus: the US markets are closed as the country celebrates Thanksgiving Day
  • Current trend: Upward movement
  • XAUUSD forecast for 29 November 2024: 2,650 and 2,700

Fundamental analysis

XAUUSD quotes completed a downward correction and confidently reversed upwards, resuming the long-term uptrend. Gold remains in strong demand from central banks and investors, supported by the Federal Reserve’s monetary policy easing and the escalation of local military conflicts. The decline in the US dollar against major currencies also contributed to Gold’s growth this week.

With US markets closed today for the Thanksgiving holiday, no macroeconomic data is expected to be released. Without major news, Gold may continue to strengthen moderately within the current technical framework.

RoboForex Market Analysis & Forex Forecasts

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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GBPUSD declines at the beginning of the week as the news lull ends

The British pound sterling is undergoing a correction after its recent rise and is trading at 1.2691, as the impact of the US dollar has returned in full force. Find out more in our analysis for 2 December 2024.

GBPUSD forecast: key trading points

  • The GBPUSD pair rose briefly before pausing
  • The extended US holidays provided support for the pound’s rise
  • GBPUSD forecast for 2 December 2024: 1.2635 and 1.2763

Fundamental analysis

The GBPUSD rate has dropped to 1.2691.

At the end of last week, the GBP strengthened against the US dollar as overseas investors observed an extended Thanksgiving holiday. Trading volumes were low, but November proved to be highly volatile.

However, the pound’s November losses against the US dollar were less pronounced than the euro’s. The GBP’s resilience was supported by expectations of a more decisive monetary policy from the Bank of England and the threat of tariff complications from the new US administration. For the pound, the absence of news was indeed good news.

The GBPUSD forecast appears moderate.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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USDJPY resumes growth, but the yen will not retreat easily

The USDJPY pair rose to 150.06 on Tuesday. Despite sustained pressure, the Japanese yen remains resilient. Find out more in our analysis for 3 December 2024.

USDJPY forecast: key trading points

  • The USDJPY pair recorded modest gains
  • Investors remain optimistic about a December Bank of Japan interest rate hike
  • USDJPY forecast for 3 December 2024: 150.70

Fundamental analysis

The USDJPY exchange rate rose to 150.06.

Despite local pressure from the US dollar, the yen remains close to a seven-week high. The optimism is attributed to expectations that the Bank of Japan will raise interest rates in December.

Last weekend, BoJ Governor Kazuo Ueda stated that further rate hikes were imminent as economic data aligned with expectations.

Investors currently assess the likelihood of a 25-basis-point rate hike this month at 60%, compared to no more than 50% last week.

The USDJPY forecast is neutral.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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EURUSD remains in a consolidation phase, with crucial news ahead

The EURUSD pair is stable around the 1.0502 level. The market is conserving strength ahead of US statistics. More details in our analysis for 4 December 2024.

EURUSD forecast: key trading points

  • The EURUSD pair remains in a consolidation phase
  • Market participants are awaiting November US employment reports
  • EURUSD forecast for 4 December 2024: 1.0628

Fundamental analysis

The EURUSD rate is hovering around 1.0502 in the middle of the week.

The primary currency pair has seen only modest movements in recent days. Political turmoil in France has already been priced in, but the market still seeks safe-haven assets, keeping the euro relatively low.

The release of US labour market data supported the US dollar. The number of job vacancies in the US increased moderately in October while layoffs decreased, which is a positive sign for the sector as a whole.

The market’s focus now shifts to the ADP private sector employment change data due on Wednesday and a large batch of employment statistics on Friday.

The EURUSD forecast remains moderate.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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AUDUSD halted its decline: even sellers take a break

The AUDUSD pair has paused around 0.6434. The Australian dollar could tumble at any moment. Find out more in our analysis for 5 December 2024.

AUDUSD forecast: key trading points

  • The AUDUSD pair halted its decline
  • The market capitalised on trade surplus statistics to pause AUD sales
  • AUDUSD forecast for 5 December 2024: 0.6480

Fundamental analysis

The AUDUSD rate fell to 0.6434 before stabilising.

The latest data revealed that Australia recorded its largest trade surplus in eight months this October, thanks to a recovery in exports.

However, the AUD remains near a four-month low against the US dollar as the market continues to factor in weak GDP data and anticipates an imminent easing of monetary policy by the RBA.

On Wednesday, the AUDUSD pair declined by almost 1%.

The AUDUSD forecast appears bleak, with sellers likely to return to the market at any moment.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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Gold (XAUUSD) is consolidating within a range ahead of nonfarm payrolls

XAUUSD prices are consolidating within a narrow range near the 2,650 USD level as market participants await US employment statistics. Find out more in our XAUUSD analysis for today, 6 December 2024.

XAUUSD forecast: key trading points

  • Market focus: market participants await US labour market data, with nonfarm payrolls and the unemployment rate due today
  • Current trend: consolidating within a range
  • XAUUSD forecast for 6 December 2024: 2,700 and 2,600

Fundamental analysis

XAUUSD prices continue to hold firmly above 2,600 USD. The asset appears poised to complete its correction and move towards annual highs. The US labour market statistics released during the American trading session could drive further price increases.

The data released by Automatic Data Processing Inc. (ADP) on Wednesday showed an increase of 146 thousand in US jobs, which was nearly in line with the forecast of +150 thousand.

The market awaits another batch of US employment statistics today: nonfarm payrolls (the economy is projected to show an increase of 200 thousand jobs) and the unemployment rate (projected at 4.2%). Better-than-forecast data will support the US dollar, likely extending the correction in the XAUUSD pair. Conversely, weaker-than-expected figures could trigger a return to Gold’s annual highs.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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EURUSD declines to 1.0539: investors avoid risk

The EURUSD pair is under selling pressure, with the market favouring the US dollar again. Find out more in our analysis for 9 December 2024.

EURUSD forecast: key trading points

  • The EURUSD pair has been declining for the second consecutive trading session
  • This week’s US inflation report will be the last statistics to be released before the Federal Reserve meeting
  • EURUSD forecast for 9 December 2024: 1.0535, 1.0480, and 1.0460

Fundamental analysis

The EURUSD rate fell to 1.0539 on Monday.

The US dollar earlier came under pressure as investors were selling the USD following the release of US labour market statistics for November. The unemployment rate rose to 4.2% from the previous 4.1%. It remained unchanged for two consecutive months and has only now shifted in a negative direction. Nonfarm payrolls expanded by 227 thousand, while a month ago, the indicator increased by a symbolic 36 thousand.

Monthly job gains in the past four reports averaged 150 thousand. The figure is less than required to provide jobs for the constantly growing population.

This week, the focus will be on the inflation release, the last significant report before the December Federal Reserve meeting.

The EURUSD forecast appears negative.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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Brent is trading below 72.00 USD following the OPEC+ meeting

Brent is trading within a broad sideways range, with prices currently hovering around 72.00 USD. Market participants did not receive significant signals from the OPEC+ meeting. Find out more in our Brent analysis for today, 10 December 2024.

Brent forecast: key trading points

  • Current trend: trading within a broad consolidation range
  • Market focus: the OPEC+ decision aligned with market expectations
  • Brent forecast for 10 December 2024: 72.00 and 70.00

Fundamental analysis

At Thursday’s meeting, OPEC+ decided to keep oil output at current levels for Q1 2025. The group plans to gradually increase production starting from Q2 and continue this policy until September 2026. This decision aligned with market expectations, resulting in no strong reaction from oil quotes, with prices remaining in the 70.00-76.00 USD sideways range.

The American Petroleum Institute (API) will release US oil stock statistics today, with data from the Energy Information Administration (EIA) due tomorrow. A reduction in oil reserves may support Brent prices, whereas an increase in the figures could push the asset lower.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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USDJPY halted its rise, pausing ahead of a new wave of growth

The USDJPY pair is consolidating around 151.60. The prerequisites for further growth remain in place. Discover more in our analysis for 11 December 2024.

USDJPY forecast: key trading points

  • The USDJPY pair halted after a wave of growth
  • The local strengthening of the US dollar is exerting pressure on the yen
  • USDJPY forecast for 11 December 2024: 150.77

Fundamental analysis

The USDJPY rate rose to 151.60 and then paused to consolidate.

The Japanese yen remains near a two-week low against the US dollar, as expectations surrounding the release of the US inflation report are supporting the USD.

Japan’s Tankan Index data was negative in December, while the BSI in the manufacturing sector improved in Q4 2024. Producer price statistics were also released, showing Japan’s fastest growth in 16 months. The focus of yen supporters has shifted to the December Bank of Japan meeting. While the market anticipates an interest rate hike, doubts about it remain significant.

The USDJPY forecast does not rule out further price increases.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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AUDUSD: the Australian dollar has a chance of strengthening

Amid positive data from Australia, the AUDUSD rate may continue its ascent to the 0.6444 level. More details in our analysis for 12 December 2024.

AUDUSD forecast: key trading points

  • Australia’s employment change in November: previously at 12.2 thousand, currently at 35.6 thousand
  • Australia’s unemployment rate in November: previously at 4.1%, currently at 3.9%
  • US initial jobless claims: previously at 224 thousand, projected at 221 thousand
  • AUDUSD forecast for 12 December 2024: 0.6444

Fundamental analysis

Australia’s employment change reflects the difference in the number of officially employed citizens over the reporting period. The previous value was 12.2 thousand, while the actual figure came in at 35.6 thousand, exceeding both expectations and the earlier reading. This could indicate some improvement in Australia’s economic climate. Following the release of the employment data, the AUDUSD pair underwent a correction.

Australia’s unemployment rate dropped to 3.9%, down from the previous reading. Fundamental analysis for 12 December 2024 shows that this improvement in unemployment figures became a positive factor for the Australian dollar.

The forecast for 12 December 2024 suggests that US initial jobless claims for the previous week are likely to fall to 221 thousand from the previous 224 thousand. The decrease is expected to be minor, serving as a neutral factor for the US dollar.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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Weak US unemployment data supports a decline in EURUSD

Despite the ECB decision, the EURUSD rate remains under pressure, currently standing at 1.0461. Discover more in our analysis for 13 December 2024.

EURUSD forecast: key trading points

  • The US dollar remains under pressure even after a 25-basis-point ECB interest rate cut
  • US initial jobless claims rose to 242 thousand, reaching the highest level since mid-October
  • US PPI increased by 3.0%, marking the most substantial growth since February 2023
  • Traders expect the Federal Reserve to lower the interest rate by 0.25% next week, with the probability estimated at 96.4%
  • EURUSD forecast for 13 December 2024: 1.0460 and 1.0410

Fundamental analysis

The EURUSD rate is declining for the sixth consecutive trading session, with sellers seeking to establish a foothold below the 1.0465 support level. The US dollar remains under pressure despite the ECB reducing the interest rate by 25 basis points. Markets are now likely to expect another 25-basis-points cut by the Federal Reserve next week. However, the US regulator’s future actions in 2025 remain uncertain, which adds pressure to the pair according to today’s EURUSD forecast.

The ECB reiterated its commitment to reducing inflation to its medium-term target. However, its press release omitted the statement regarding keeping rates at restrictive levels as long as necessary. The regulator noted that future interest rate decisions would be based on economic data analysis at each meeting without pre-committing to a predetermined course of action.

Meanwhile, the US initial jobless claims rose by 18 thousand to 242 thousand, the highest level since mid-October. This data reinforced expectations of a 0.25% Federal Reserve rate cut at the upcoming meeting, with the markets estimating the odds at 96.4%. At the same time, producer prices rose by 3.0% year-on-year in November, marking the most substantial increase since February 2023 and greatly exceeding analysts’ expectations. Core PPI, excluding food and energy, rose by 3.4%, matching October’s pace and exceeding the average expert forecast of 3.2%.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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Gold (XAUUSD) corrects towards 2,650 USD

XAUUSD prices rose above 2,720 USD last week but could not sustain that level, entering a correction. This week, the market will focus on the US Federal Reserve’s interest rate decision. More details in our XAUUSD analysis for today, 16 December 2024.

XAUUSD forecast: key trading points

  • Market focus: market participants are awaiting a Federal Reserve interest rate decision at a meeting on Wednesday
  • Current trend: downward correction
  • XAUUSD forecast for 16 December 2024: 2,720 and 2,630

Fundamental analysis

Gold showed mixed movements last week. It rose steadily at the beginning of the week but then retraced back as part of a correction following the release of US inflation statistics (the CPI and PPI), which recorded higher-than-expected growth rates.

The US Federal Reserve is scheduled to hold its regular meeting this week, during which a 25-basis-point interest rate cut is anticipated. According to the CME FedWatch Tool, markets currently assign a 97.1% probability to this cut. Subsequent comments from the regulator regarding future interest rate plans will be crucial for Gold prices.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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USDCHF: the Swiss franc continues to lose ground against the US dollar

A rise in US industrial production and retail sales could drive the USDCHF rate up to 0.9040. More details in our analysis for 17 December 2024.

USDCHF forecast: key trading points

  • SECO economic forecasts for Switzerland
  • US retail sales (m/m): previously 0.4%, projected at 0.6%
  • US industrial production (m/m): previously -0.29%, projected at 0.10%
  • USDCHF forecast for 17 December 2024: 0.9040


Fundamental analysis

Fundamental analysis for 17 December 2024 takes into account that Switzerland’s State Secretariat for Economic Affairs (SECO) will release updated economic growth forecasts today. The previous forecast, published on 19 September 2024, expected GDP growth of 1.1%, significantly below the average. The inflation forecast for 2024 was revised down to 1.2% from 1.4%, and the 2025 outlook was reduced to 0.7%. Today’s SECO report will provide the latest data on economic conditions and the outlook for 2025.

The forecast for 17 December 2024 suggests that US retail sales may rise to 0.6%. Actual data may differ from expectations; however, increased sales in November may support the US dollar.

US industrial production is also projected to rise to a positive level from the previous -0.29%, with the forecast for 17 December 2024 suggesting a production level of 0.10%. Although this is a modest increase, it may instil hope in investors.

RoboForex Market Analysis & Forex Forecasts

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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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Gold (XAUUSD) remains within the range: the Fed is in the spotlight

Gold (XAUUSD) is consolidating around 2,650 USD, with the market awaiting news from the Federal Reserve. Find out more in our analysis for 18 December 2024.

XAUUSD forecast: key trading points

  • Market focus: Gold (XAUUSD) remains flat without any news from the Federal Reserve
  • Current trend: the asset’s prospects depend on the Federal Reserve signals for 2025
  • XAUUSD forecast for 18 December 2024: 2,690.00 and 2,735.25

Fundamental analysis

Gold (XAUUSD) prices hover around 2,650 USD per troy ounce on Wednesday.

Consolidation is a natural development ahead of today’s US Federal Reserve interest rate decision. The Fed’s December meeting will conclude this evening. The baseline scenario suggests a 25-basis-point Federal Reserve rate cut. The market will look for clues about how the Fed intends to act in 2025 amid multiple uncertainties around monetary policy and the country’s economy.

Gold prices have risen 28% this year, which could be the highest annual gain since 2010 by the end of the year. This was primarily due to the Federal Reserve’s monetary policy easing, demand for safe-haven assets, and systematic purchases of Gold by global central banks.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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EURUSD declines after Powell’s comments

The EURUSD rate retreated sharply to 1.0350 following the US Federal Reserve meeting and subsequent comments from Jerome Powell. Find out more in our analysis for 19 December 2024.

EURUSD forecast: key trading points

  • The US Federal Reserve lowered the interest rate by 0.25%
  • Stock markets are in negative territory, while the US dollar strengthens after the Fed’s decision
  • EURUSD forecast for 19 December 2024: 1.0400 and 1.0330

Fundamental analysis

The US Federal Reserve cut its benchmark interest rate by 25 basis points to 4.50% following its two-day meeting on 17-18 December. The decision was expected, but subsequent comments from the regulator’s chief and new economic forecasts adversely affected the stock market (the S&P 500 index fell by 3% at once), strengthening the US dollar against all other currencies.

The US dollar strengthened mainly due to the Fed’s revision of its inflation outlook for 2024 and 2025. Inflation is projected to run at 2.4% at the end of 2024, up from 2.3% in the September release. The Federal Reserve expects inflation in 2025 to be 2.5%, up from 2.1% in the previous forecasts.

At a press conference following the meeting, Federal Reserve Chair Jerome Powell noted that the Fed’s current policy does not negatively affect the economy, allowing the regulator to adopt a more cautious approach to future actions. The Fed wants to see a tangible slowdown in inflation before implementing the next rate cut.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team
 

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The AUDUSD pair appears weak, but there are signals for recovery

The AUDUSD pair declined to 0.6223, and recovering from the two-year low will not be easy. Find out more in our analysis for 20 December 2024.

AUDUSD forecast: key trading points

  • The AUDUSD pair remains at a two-year low
  • The market is confident that the RBA is closer to an interest rate cut, which could happen as early as February 2025
  • AUDUSD forecast for 20 December 2024: 0.6239 and 0.6288

Fundamental analysis

The AUDUSD rate fell to 0.6223 on Friday. The pair remains at a two-year low and appears relatively weak from a fundamental perspective.

The market believes the Reserve Bank of Australia will soon be ready for its first rate cut amid slowing economic activity. The rate could be lowered as early as February 2025, with the current level at 4.35% per annum. The minutes of the RBA’s previous meeting, due in December, may provide further insights into these plans.

Externally, the AUD remains under pressure from the strong US dollar. This driver became more influential after the Federal Reserve announced its cautious plans to lower the interest rate next year.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

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