Investors Await US GDP and PCE Data as Markets Anticipate Fed Rate Cuts (07.25.2024)

Check our daily analysis for support and resistance levels of the stated trading instruments. Find valuable insights about Gold, EUR/USD, USD/JPY, and GBP/USD. Stay ahead of market trends with our expert commentary and detailed chart analysis. 

On Thursday, gold declined to approximately $2,370 per ounce, its lowest level in two weeks, as investors awaited key US economic data. The focus is on preliminary Q2 GDP figures, expected to show 2% growth and the June PCE price index. Market sentiment fully anticipates a rate cut in September, with expectations for two additional reductions by year-end. Increased gold demand from India is also expected following a tax reduction.

The dollar index dropped below 104.3 for the second session as investors awaited crucial US economic data. Key releases include weekly jobless claims and preliminary Q2 GDP figures, followed by the June PCE price index. S&P Global's flash PMIs showed strong services growth but a manufacturing contraction. Market expectations remain tilted towards a 25 basis point rate cut by the Fed in September, with additional reductions likely by year-end.

The Japanese yen strengthened beyond 153 per dollar, its highest in 12 weeks, as traders closed out positions ahead of the BoJ policy meeting. Safe-haven demand also bolstered the yen amid declines in riskier assets due to disappointing corporate earnings and a dimming global economic outlook. Market sentiment is divided on a BoJ rate hike, but there is anticipation of bond purchase tapering. Recent yen strength began with speculation of government intervention, supported by BOJ data indicating significant yen purchases on July 11-12.

EUR/USD Starts Asian Session Flat, Eyes on Upcoming US Growth Figures

The direction of the pair, starting the Asian session flat today, will be influenced by the growth data that will be released in the US later. Below, the initial support level is at 1.0810, followed by 1.0760 and 1.0710 if this area is breached. On the upside, the first resistance is at 1.0870, with subsequent levels to watch at 1.0900 and 1.0950 if this level is surpassed.

Key Support for USD/JPY at 152.00 Amid Anticipated BoJ Policy Changes

The Japanese yen continues to strengthen on expectations of interest rate hikes and reduced bond purchases by the Bank of Japan. The first notable support level is at 152.00. If this level is breached and downward momentum continues, the next levels to watch are 151.15 and 150.00, respectively. On the upside, the initial resistance is at 153.50. If this level is surpassed, further resistance levels to monitor are 154.50 and 155.50.Top of FormBottom of FormTop of Form

Gold Faces Resistance at $2,384 Following a $30 Decline

Gold started the day with a descendent momentum of nearly 30 USD per ounce, with the first resistance level at 2,384. If this level is surpassed, the next targets will be 2,400 and 2,415. On the downside, the first support is at 2,370, and if this level is broken, the next supports to watch will be 2,355 and 2,315.

GBP/USD Tests 1.2860 Support, Looks to Overcome 1.2940 Resistance

For GBP/USD, the initial support lies at 1.2860, followed by 1.2820 and 1.2760 below. On the upside, the first resistance is at 1.2940, with subsequent levels at 1.3000 and 1.3050 if the pair breaks above this resistance.