Top Forex Brokers – Forex Weekly news and analysis For November 04 – 10, 2024
BoE Monetary Policy Report
The Bank of England’s upcoming report promises a strategic pivot. Recent inflation data shows that the Consumer Price Index dropped to 1.7%, with core inflation falling to 3.2%. It is a significant decrease driven by lower service sector costs and moderate wage growth. The BoE is expected to reduce the rate to 4.75% in response.
By moderating interest rates, the BoE hopes to support consumer spending, investment, and housing affordability, which is crucial in the face of global and domestic uncertainties.
GBPUSD, in a long-term bullish trend, has formed an expanding wedge pattern. The price has reached the lower trend line, and there are two possible scenarios now:
•A rise above 1.3000 resistance will continue to 1.3140;
•A break of the trend line below 1.2940 will start the decline to 1.2800.
US Interest Rate Decision
Experts expect further interest rate cuts on Thursday. Following a notable 50 basis-point reduction in September, the market anticipates additional easing measures amid signs of a slowing economy.
Market analysts project that the Fed may implement further 25 basis-point cuts in its upcoming meetings. Overall, as the Fed considers the following steps, the focus will be on aligning its monetary policy with evolving economic conditions to avoid overheating the economy while supporting growth during a period of uncertainty.
In the Daily timeframe, the US dollar reached a critical resistance area after a strong bullish trend. At the same time, DeMarker and %R indicate overbought conditions.
•If the price breaks the 104.500 resistance, the upside will be 106.000;
•A rebound from resistance will correct the US dollar to 102.700.
AUDUSD, in the uptrend, formed a double-top pattern, and the price fell to the lower boundary. Despite the substantial fall, Stochastic and %R came out of oversold condition, which indicates possibile growth.
•If the price breaks the trendline below 0.6560, it will fall to 0.6490;
•A rebound from the trendline and a rise above 0.6580 will send AUDUSD to 0.6650 and 0.6700.
USDCHF, after a long-term bearish trend, started to rise, and the price is consolidating at 38.2 Fibonacci and MA100 resistance. At the same time, DeMarker has come out of oversold condition.
•A break above 0.8700 and MA100 will continue the rise to 0.8900;
•A rebound from the resistance will take USDCHF back to 0.8510.
XAGUSD has formed an ascending channel pattern in a short-term bullish trend. The price fell to the lower trendline and crossed DEMA and TEMA downwards. At the same time, DeMarker came out of overbought condition.
•A break of the trendline below 32.600 will drop the price to 31.500;
•A bounce off the trendline will bring it back up to 34.500.
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