Daily Price Outlook

During the Asian trading hours on Thursday, the price of gold (XAU/USD) experienced a recovery from its recent decline, bouncing back from around $1,928. However, it still faces selling pressure due to the Federal Reserve's decision to keep its benchmark policy rates steady at 5.5% and its hawkish remarks. As the European session begins, gold is hovering around $1,930. Investors are shifting their focus to upcoming US economic data following the Fed's decision, but the Fed's indication of a potential interest rate hike is causing uncertainty and keeping downward pressure on the price of gold.

Fed Holds Rates Steady, Eye on Gold's Path

It's worth noting that the Federal Reserve decided to keep interest rates unchanged at the 5.25-5.50% range during their September meeting. This decision was in line with most expectations, as they are confident in their ability to manage inflation without causing excessive harm to the economy or job market. Fed Chairman Jerome Powell emphasized their goal of reaching 2% inflation and said they're ready to raise rates if needed.

According to the Fed's latest predictions, they might increase rates one more time this year, reaching a range of 5.50% to 5.75%. They also expect rates to stay high through 2024, with a projection of 5.1% by the end of that year. These rising interest rates can make investments in non-yielding assets less attractive, which is not good news for precious metals.

Dollar Strength and Economic Data Focus

The broad-based US dollar, measured by the US Dollar Index (DXY), is on the rise, hitting a six-month high around 105.50. However, this surge is fueled by higher US Treasury yields, now at 4.43%, the highest since 2007. Therefore, the strong dollar makes it less attractive to hold assets like Gold, which doesn't earn interest.

Looking forward, investors are keeping a close eye on US data coming out on Thursday. Traders will be watching the weekly Initial Jobless Claims, the Philadelphia Fed Manufacturing Survey, and the change in Existing Home Sales. These reports give us a good picture of the job market, manufacturing, and real estate, which all affect how people feel about the economy.

GOLD(XAU/USD) - Technical Analysis

Despite attempts, gold failed to surpass the $1945.20 mark, resulting in a notable downward reversal. This move decisively breached the $1929.00 support level, settling beneath it. Such a shift negates the anticipated positive trajectory from the inverted head and shoulders pattern, steering the commodity towards potential bearishness in upcoming trading sessions, with an initial target set at the $1913.15 region.

The Stochastic oscillator currently radiates bearish signals, reinforcing the outlook for continued decline. As such, the prevailing sentiment leans bearish unless the price can reclaim and sustain above the $1929.00 level. For today's trading, we anticipate a range between a support at $1910.00 and a resistance at $1940.00.

Daily Price Outlook

During early European trading on Thursday, the USD/JPY pair surged above the 148.00 mark, bouncing back from its low of 147.47. However, the reason for its upward movement was mainly fueled by the Federal Reserve's (Fed) hawkish stance in the Wednesday's policy meeting. Besides this, traders seems cautious to place any strong position due to verbal intervention from Japanese authorities earlier in the week. Although the USD is showing strength, these interventions may impact its further rise against the Japanese Yen.

Fed's Steady Rates and "Higher for Longer" Outlook

As we mentioned above, the Federal Reserve held steady on interest rates at their September meeting, maintaining them at 5.25-5.50%. They are growing more confident about taming inflation without harming the economy or causing major job losses. According to their latest quarterly forecasts, there might be one more rate hike this year, bringing the range to 5.50% to 5.75%. Furthermore, they expect rates to remain quite high through 2024, more than previously thought.

Moreover, the Fed updated its Summary of Projections (SEP), showing that they anticipate the interest rate hitting 5.1% by the end of 2024, up from the previous estimate of 4.6%. Hence, this "higher for longer" rate outlook has given the US Dollar a boost against other currencies.

Market Highlights: Upcoming Events and Potential USD/JPY Opportunities

Besides this, the highlight for Friday is the Bank of Japan (BoJ) interest rate decision. It is worth noting that the BoJ is expected to stick with its -0.1% short-term interest rate target and its 10-year bond yield target at around 0%. They have made it clear that they will not consider changes to monetary policy until local wage and inflation data align with their projections.

Meanwhile, traders are being careful because they're concerned about verbal interventions. A former top currency diplomat, Takehiko Nakao, told Reuters that Japanese authorities might step in to help the yen if it gets weaker. Japan's top currency diplomat, Masato Kanda, has also stressed the need to act quickly regarding currency movements. As a result, the Japanese Yen (JPY) is under pressure to weaken, which is good for the USD/JPY pair.

Looking forward, investors will keep their eyes on upcoming events. Notably, thursday will bringsome key economic data, such as US weekly Jobless Claims, the Philly Fed report, and Existing Home Sales. On Friday, all attention will be on the Bank of Japan's (BoJ) meeting decision. Traders will closely watch these events for potential trading opportunities involving the USD/JPY pair.

USD/JPY - Technical Analysis

The USD/JPY pair has successfully breached the 147.86 mark and established a daily close above it, enhancing the prospects for sustained bullish momentum in forthcoming sessions. We anticipate a continued upward trajectory, targeting the 149.00 level as our subsequent milestone.

The bullish outlook is further corroborated by the EMA50, which underpins the price, coupled with the favorable convergence signal currently exhibited by the stochastic indicator. It is imperative to maintain a position above the 147.50 level to realize the projected targets.

For today's trading dynamics, we forecast a range defined by a support at 147.60 and a resistance at 149.10, with the prevailing sentiment tilting bullish.

Daily Price Outlook

The GBP/USD pair failed to stop its losing streak and remained well offered around 1.2345 level as the UK's Consumer Price Index (CPI) report for August was lower than expected, dampening the Pound Sterling's appeal. Investors anticipated a higher CPI due to rising energy prices but were surprised by the soft report. This led to a significant decrease in the Pound's value against the US Dollar. Core inflation also slowed down noticeably, showing reduced demand for everyday items. Additionally, the UK's Producer Price Index (PPI) for core output shrank in August, revealing that producers were less confident about demand as high inflation squeezed household incomes.

UK Inflation Data & GBP/USD Reaction; Focus on BoE Meeting

According to the UK's Office for National Statistics (ONS), the country's annual inflation, as measured by the Consumer Price Index (CPI), increased by 6.7% in August, slightly down from July's 6.8%. This was lower than the expected 7.1% rise. Core CPI, excluding volatile items, rose by 6.2% year-on-year, missing the estimated 6.8%. The Services CPI increased by 6.8%, lower than July's 7.4%. Food and accommodation services had the most significant impact on lowering the CPI.

The UK Finance Minister, Jeremy Hunt, mentioned that their plan to tackle inflation is showing progress, although inflation remains too high. Following the CPI data, the GBP/USD pair dropped around 40 pips to reach below 1.2350, a multi-month low.

Meanwhile, the immediate market impact is likely to be limited because everyone's attention is on the Bank of England (BoE) meeting this Thursday. However, the chances of aggressive policy tightening seem to be diminishing. BoE Governor Andrew Bailey recently suggested they're nearing the end of interest rate hikes. In the meantimel, the concerns about a potential recession and a cooling UK job market could prompt the BoE to pause rate hikes, capping potential gains for the GBP/USD pair.

FOMC Policy Decision Awaited: Impact on GBP/USD

Besides that, investors are awaiting the FOMC policy decision to be announced during the US session. The Federal Reserve (Fed) is likely to maintain current interest rates, but there's market anticipation of a possible 25 bps increase later this year. Analysts will closely watch Fed Chair Jerome Powell's post-meeting remarks and the monetary policy statement for insights on future rate hikes, affecting the USD and providing new momentum for the GBP/USD pair.

GBP/USD - Technical Analysis

The GBP/USD currency pair remains anchored around the 1.2400 mark, consistently positioning below it. The EMA50 exerts ongoing downward pressure on the price, suggesting a potential resumption of the prevailing bearish momentum, targeting the significant 1.2310 level next.

The established bearish channel affirms the longer-term bearish trajectory, aiming for objectives below the aforementioned level. It's pivotal to note that a breach of the 1.2435 threshold would pivot the pair's direction upwards intraday, potentially reaching 1.2505 before encountering further bearish challenges.

Today's trading parameters are projected to span from a support at 1.2300 to a resistance boundary at 1.2445.

Daily Price Outlook

During the Asian trading session on Wednesday, the EUR/USD currency pair continued to climb, reaching approximately 1.0690. Traders are being cautious and not taking strong positions, likely because they're waiting for the highly anticipated FOMC policy meeting. Moreover, the strength of the US dollar is seen as a key factor preventing the EUR/USD pair from making further gains

Right now, people in the market are being extra careful and attentive because they're eagerly awaiting the results of the upcoming FOMC meeting. They're really keeping an eye out for any hints or information that might come out of it. This cautious attitude and the current strength of the dollar are both playing a big role in how this currency pair is moving.

Fed's Upcoming Decision and Its Impact on EUR/USD

It's worth noting that the Federal Reserve (Fed) is set to announce its decision during the US session. Most people expect them to keep interest rates where they are, between 5.25% and 5.5%. However, investors are anticipating the Fed's firm stance on inflation and the possibility of a 0.25% rate hike later this year.

Recent economic data shows that the US economy is still strong, giving the Fed reason to keep interest rates higher for longer. Hence, the Federal Reserve's statement and Fed Chair Jerome Powell's remarks in the press conference will be closely monitored. The news may strengthen the USD, potentially causing the EUR/USD pair to fall as investors favor the stronger US economy.

ECB's Rate Hike Pause Could Weaken EUR/USD

Besides this, the European Central Bank (ECB) recently raised interest rates for the 10th consecutive time, pushing them up by 0.25% to a record 4%. Yet, they dropped hints that this long series of rate hikes might be coming to an end. They also lowered their predictions for inflation and economic growth in 2024 and 2025, suggesting that more rate hikes might be on hold.

On top of that, the most recent data indicates that inflation has eased compared to July. This could potentially lessen the Euro's strength against the US Dollar (EUR/USD). So, the European Central Bank (ECB) is taking a step back from continuously raising rates, at least for the time being. This news implies that the EUR/USD currency pair might lose some strength because the ECB seems to be holding off on increasing interest rates due to the lowered inflation and growth forecasts.

EUR/USD - Technical Analysis

The EUR/USD currency pair has engaged with the upper boundary of its bearish channel and now exhibits consolidation beneath it. Notably, the EMA50 reinforces the integrity of this resistance, hinting at a continuation of the projected bearish trajectory in the foreseeable future. This movement sets its sights on the 1.0635 level, with further descent to 1.0515 should the former be breached.

The current upbeat momentum of the Stochastic oscillator may induce transient lateral movements before a reversion to a downward trend. It's imperative to acknowledge that a surpass of the 1.0705 mark would negate the anticipated decline, potentially propelling the price towards intraday highs around 1.0785 prior to any subsequent bearish endeavors. For today, the trading bracket is estimated to stretch from a foundational support at 1.0590 to a resistance cap at 1.0740.

Daily Price Outlook

During the Asian trading hours on Wednesday, the price of gold (XAU/USD) struggled to maintain its upward momentum and is now hovering around the $1,930 mark. Investors are adopting a cautious stance, opting to remain on the sidelines in anticipation of the Federal Reserve's Interest Rate Decision. These upcoming events carry the potential to introduce significant volatility into the market.

Gold's current value has fallen from its recent two-week high, primarily driven by the rise in US Treasury yields. Meanwhile, the US Dollar Index (DXY) is maintaining its stability at around 105.10, bolstered by these heightened yields. Notably, the yield on the US 10-year Treasury note has reached 4.36%, marking its highest level in 16 years. This surge in yields presents a significant challenge to gold prices.

Fed Expected to Keep Rates Steady, Impact on Gold

As we all know, the Federal Reserve is about to announce its monetary policy decisions after a two-day meeting. It is widely expected that they will keep interest rates steady in the range of 5.25% to 5.5% In fact, the probabilities of the rates staying the same in September are incredibly high at 99%, according to the CME Fedwatch Tool. Interestingly, the possibility of a rate hike in the November and December meetings has decreased, as shown by the same tool.

Looking ahead, gold traders have their eyes set on the awaited Fed interest rate decision coming up on Wednesday at 18:00 GMT. This event has the potential to provide a strong signal for where gold prices might be heading. Furthermore, traders will keep an eye on the Bank of England (BoE), which will reveal its benchmark rates on Thursday, and the Bank of Japan (BoJ) has its monetary policy meeting scheduled for Friday. These central bank actions and decisions can significantly influence the direction of gold prices shortly.

Strong US Dollar Pressuring Gold Prices

The broad-based US dollar is holding steady near six-month highs as the financial markets prepare for the Federal Reserve's interest rate decision today. However, the stronger US dollar is one of the main reasons why the price of gold has been pushed down even further. Investors are watching closely to see what the Federal Reserve decides, as it could have a significant impact on both the dollar and gold.

GOLD(XAU/USD) - Technical Analysis

Gold's value is experiencing a downward trend as it aims to revisit the previously surpassed neckline of the inverted head and shoulders pattern evident on the chart. This movement is further underscored by the stochastic nearing the oversold domain, suggesting a potential positive shift. Such an alignment could drive the anticipated bullish trajectory in the near future, primarily aiming for the $1,945.20 mark. For intraday forecasts, we retain a bullish perspective, bolstered by the price's position above the EMA50.

However, it's crucial to note that a decline below $1,929.00 might disrupt this bullish outlook, reintroducing bearish pressures. The projected trading spectrum for today spans from a support at $1,920.00 to a resistance at $1,950.00

Daily Price Outlook

The USD/JPY currency pair witnessed some buying interest on Tuesday but has been struggling to make significant gains. It is currently trading around 147.70, up just slightly for the day. Notably, the pair reached its highest level since November 2022 last week but has not been able to maintain that momentum.

However, traders seems cautious and staying on the sidelines as they await important central bank events this week, particularly the Federal Reserve (FOMC) and the Bank of Japan (BoJ) rate decisions. These events are seen as crucial, and investors are holding off on making big moves until they have more clarity on central bank policies.

At the time of writing, the USD/JPY currency pair is trading at 147.68 level and consolidating in the range between 147.50 - 147.93.

Fed Expected to Maintain Cautious Stance: Impact on USD/JPY

It's worth noting that the Federal Reserve is set to announce its decision on Wednesday, and most people expect them to keep things as they are. However, the market believes that the Fed will stick to its more cautious approach, keeping interest rates relatively high for an extended period. This expectation is keeping US Treasury bond yields up, which, in turn, is helping the US Dollar (USD) stay strong. As a result, the USD/JPY pair is benefiting, with the USD holding its ground after a recent dip from a six-month high. This all suggests ongoing support for the USD/JPY currency pair.

USD/JPY Traders Cautious Amid BoJ Speculation

Another factor affecting the USD/JPY currency pair's gains is the speculation surrounding a potential shift in the Bank of Japan's (BoJ) dovish stance. BoJ Governor Kazuo Ueda recently hinted in an interview with Yomiuri newspaper that they might consider ending their negative interest rate policy if they become confident that prices and wages will continue rising steadily. This statement has raised expectations that the BoJ could gradually move away from its ultra-loose monetary policy, creating uncertainty in the market and causing some traders to hold back on placing bullish bets on the USD/JPY pair.

Looking forward, all eyes are on the Bank of Japan (BoJ) policy meeting set for Friday. Investors await signals about the BoJ's plans regarding its negative interest rate policy, which could significantly impact the Japanese Yen and reshape the direction of the USD/JPY currency pair. Moreover, US housing market data like Building Permits and Housing Starts will also offer short-term trading opportunities.

USD/JPY - Technical Analysis

The USD/JPY pair demonstrates consistent movement around the 147.86 mark, encountering challenges in surpassing it. Notably, the stochastic oscillator is now exhibiting a positive convergence, potentially propelling the pair to breach the aforementioned level and aim for our subsequent target at 149.00.

The prevailing bullish channel underpins the anticipated upward trajectory, contingent upon the price's ability to remain stable above the 147.30 threshold. For today, we project a trading range between the support level of 147.00 and a resistance at 148.70.

Daily Price Outlook

During the Asian trading session on Tuesday, the AUD/USD currency pair struggled to gain momentum and remained sluggish around the 0.6430 mark. However, this lack of movement was attributed to investor caution ahead of the US Federal Reserve's policy decision. Furthermore, the release of the minutes from the Reserve Bank of Australia's (RBA) September meeting did not provide any clear direction to the traders. Consequently, traders prefered for a cautious approach and decided to wait and observe the coming decisions of the Federal Open Market Committee (FOMC). At the time of writing, the AUD/USD currency pair is trading at 0.6452 and consolidating in the range between 0.6428 - 0.6460.

RBA's September Meeting and Impact on AUD/USD

The Reserve Bank of Australia (RBA) has shared information from its September meeting, giving us a better understanding of its monetary policy decisions. During this meeting, the RBA discussed the possibility of a 0.25% increase in interest rates. However, after a careful examination of the latest economic data, they ultimately decided to keep interest rates unchanged. In the meantime, the released minutes reveal a cautious approach, suggesting that if persistent high inflation remains a concern, they may consider raising rates in the future. Nevertheless, the minutes from the meeting did not provide any clear indications of a coming rate hike. Therefore, this lack of clarity will likely have a negative impact on the Australian Dollar (AUD) against the US Dollar (USD) in the short term.

US Fed's Monetary Policy and Its Impact on AUD/USD

Across the ocean, the US Federal Reserve is expected to keep interest rates unchanged in September, which makes the US Dollar weaker. However, investors are being careful because they believe the Fed might raise rates by 0.25% by the end of 2023. This is because the US economy is doing well, and prices keep rising.

As in result, the broad-based US dollar, measured by the US Dollar Index (DXY), has halted its two-day decline and is now trading around 105.20. It's slightly below the six-month high reached last week. Meanwhile, US Treasury yields, specifically the 10-year bond, have bounced back to 4.31%, which could help support the dollar. Hence, the potential rate hike in 2023 may lead to a stronger US Dollar. This could put downward pressure on the AUD/USD currency pair, making the Australian Dollar weaker against the USD.

Looking forward, investors will keep thier eyes on upcoming US macro data, particularly Building Permits and Housing Starts for August. These numbers will likely give insights into the strength of the US economy and influence trading decisions for the AUD/USD pair.

AUD/USD - Technical Analysis

The AUD/USD pair is currently evaluating the support of its intraday bullish channel and maintaining its position above this line, indicating potential upward movement towards our anticipated target of 0.6345. This outlook is bolstered by the positive indicators from the stochastic oscillator.

The EMA50 underpins the price, adding further weight to the anticipated uptrend. This bullish perspective will hold unless the price breaks the 0.6400 level and sustains below it at the daily close. Today, we anticipate the trading range to span between a support level of 0.6390 and a resistance point of 0.6490.

Daily Price Outlook

Despite the weakening US dollar and cautious market sentiment, the price of gold (XAU/USD) is holding steady above $1,900 during the Asian session on Tuesday. However, the reason for its sluggish performance can be tied to the wait-and-see approach of traders in anticipation of significant central bank meetings. The Federal Reserve (Fed), Bank of England (BoE), and Bank of Japan (BoJ) will announce their interest rate decisions later this week, potentially causing market volatility. As of now, gold is experiencing a minor 0.08% dip, trading at $1,932.

Federal Reserve Meeting and Its Impact on Gold

It is worth noting that the Federal Reserve (Fed) is about to reveal the outcome of its two-day monetary policy meeting on Wednesday, and it's widely anticipated that they will keep interest rates in the 5.25% to 5.5% range. According to the CME Fedwatch Tool, there's a 99% chance they'll maintain the current rates. Nevertheless, investors are being cautious because inflation is rising, and the US economy is doing well. This makes people worried about interest rates going up.

Hence, investors will be closely watching Federal Reserve Chairman Jerome Powell's press conference for seeking clues about future interest rate changes. It's worth noting that when interest rates rise, it can make assets like gold less appealing to invest in. This could potentially hurt the value of precious metals.

Gold's Resilience Amidst Economic Concerns

However, the losses in the gold could be short-lived as worries about a possible US government shutdown and China's worsening property crisis are supporting gold's status as a safe-haven asset. At the same time, the US dollar is losing ground against major currencies, though it's managing to hold above the 105.10 mark. Interestingly, on Tuesday, returns on US Treasury bonds, especially the 10-year ones, slipped to 4.30%. This decrease in bond yields is putting pressure on the dollar, lending additional support to gold. Hence, the bearish US dollar was seen as another key factor that kept the lid on any additional losses in the gold.

GOLD(XAU/USD) - Technical Analysis

Gold's value successfully surpassed the $1,929.00 threshold, concluding yesterday above this benchmark. A meticulous analysis of the chart indicates the completion of an 'inverted head and shoulders' pattern. This pattern hints at potential upward targets exceeding the $1,945.20 level, aiming for the vicinity of $1,960.00.

Given these dynamics, we anticipate a continuation of the bullish trend in the forthcoming phase, bolstered by the EMA50 underpinning the price trajectory. However, it's worth noting that a breach below the $1,929.00 mark could curtail this anticipated ascent, casting a bearish shadow on the intraday perspective.

For today, we forecast a trading range between the support at $1,920.00 and resistance at $1,950.00.

Daily Price Outlook

The GBP/USD currency pair failed to stop its declining streak and experienced a two-day decline, trading around 1.2380 during the European session on Monday. However, this decline is driven by upcoming interest rate decisions in the US and the UK, which are making traders cautious. In the US, the Federal Reserve is expected to maintain current interest rates in its upcoming meeting, but there is a possibility of slight rate increases later in 2023, strengthening the US dollar (USD) and putting pressure on GBP/USD.

Conversely, the Bank of England (BoE) is anticipated to raise UK interest rates slightly in its upcoming meeting, potentially boosting the British pound (GBP) while also introducing market uncertainty.

Influence of Central Banks and Economic Data on GBP/USD

It is worth noting that the US Federal Reserve (Fed) is likely to keep interest rates unchanged in its upcoming meeting on Wednesday. Investors are keenly watching for any hints about future rate changes. However, the market is currently factoring in a 0.25% rate increase by the end of 2023. Although, the USD faced some pressure due to disappointing US consumer sentiment data. The preliminary Michigan Consumer Sentiment Index for September was 67.7, lower than the previous 69.5 and the expected 69.1.

Hence, the news of the likely unchanged interest rates from the US Federal Reserve and the weaker US consumer sentiment data have the potential to put downward pressure on the USD, which could support the GBP/USD pair.

Factors Affecting GBP/USD Traders

Another factor influencing GBP/USD traders is the expectation that the Bank of England (BoE) will raise interest rates by 0.25% in its upcoming Thursday meeting. The BoE aims to combat rising inflation and maintain UK economic stability. However, BoE Governor Andrew Bailey's recent statement suggests that the bank may be nearing the end of its rate-hike cycle.

This, coupled with concerns about a potential recession and signs of a slowing UK job market, might push the BoE to reconsider future rate hikes. Investors will also closely monitor key economic data like the Consumer Price Index (CPI), Core CPI, and Producer Price Index (PPI) for August, set to be released on Wednesday.

Looking forward, traders will keep a close eye on US Building Permits data. These releases could provide trading opportunities within the GBP/USD pair, as they offer insights into the US housing market's health and can influence currency movements.

GBP/USD - Technical Analysis

The GBP/USD pair has reaffirmed its downward trajectory, consolidating beneath the 1.2400 threshold. This strengthens the forecast for an ongoing primary bearish trend, paving the way towards our primary anticipated target of 1.2310.

The current bearish channel meticulously frames the projected downtrend, which receives consistent reinforcement from the EMA50. It's important to highlight that a breach of 1.2435 could propel the price towards challenging the crucial resistance at 1.2505 before embarking on another bearish maneuver. Today's anticipated trading parameters are set between a support of 1.2300 and resistance at 1.2450.

Daily Price Outlook

During early European trading on Monday, the EUR/USD pair prolonged its upward rally and drew some further bids around the 1.0675 mark. However, this upward momentum can be attributed to disappointing consumer sentiment data from the United States (US) released the previous Friday. Furthermore, the pullback in US bond yields is putting downward pressure on the US Dollar (USD), contributing to the gains in the EUR/USD currency pair. It's worth noting that the potential for further upside in this major pair appears limited as investors await the Federal Reserve (Fed) interest rate decision scheduled for Wednesday.

Mixed US Economic Indicators Impact Dollar's Performance

According to the preliminary data, the US Michigan Consumer Sentiment Index for September dropped to 67.7, showing a decline from the previous reading of 69.5 and falling below the expected 69.1. The US Dollar Index (DXY), measuring the US Dollar against other major currencies, ended the week with a slight gain of 0.26%. However, the current price is lower, around 105.30. In addition, US Treasury yields have completely reversed their earlier gains, which is pressuring the US Dollar further. As of now, the yield on the US 10-year bond has dropped to 4.32%.

Furthermore, the previosuly released economic data from the US consistently showed that the economy is doing well. These strong signs make it more likely that the US Federal Reserve (Fed) will raise interest rates again by the end of 2023. The Consumer Price Index (CPI), which measures inflation, came in higher than expected. Retail Sales for the same month and Jobless Claims for the second week of September also showed good results, suggesting a positive outlook for the US economy.

Investors will keep a close eye on the Fed's interest rate decisions scheduled for Wednesday. While the Fed is expected to keep rates steady, people will be listening closely to what the central bank says, hoping to get hints about future rate changes.

ECB's Monetary Policy Stance and Potential Impact on EUR/USD

In contrast to the US, European Central Bank (ECB) President Christine Lagarde stated on Friday that the ECB is not considering cutting interest rates further. She also mentioned that the ECB plans to keep interest rates high for a while and might even raise them if necessary, showing a cautious but flexible approach. Hence, Lagarde's statement of no further rate cuts and potential rate hikes by the ECB can strengthen the Euro (EUR) against the US Dollar (USD), potentially boosting the EUR/USD pair.

EUR/USD - Technical Analysis

The EUR/USD pair is currently exhibiting a sideways movement, gravitating around the 1.0660 mark. It's noteworthy that the stochastic indicator shows waning positive momentum, transitioning into a negative overlap. This could potentially serve as a catalyst for the price to reinforce its bearish trajectory, targeting a break below 1.0635, which would further signal a descent towards the 1.0515 zone.

Consequently, our prevailing forecast leans towards a bearish outlook, underpinned by the downward pressure exerted by the EMA50. It's essential to underscore that a breach above 1.0685 might pivot the price towards an upward journey, aiming to touch 1.0725 and potentially stretching up to 1.0785 before considering any subsequent decline. The day's anticipated trading corridor is delineated between the support at 1.0570 and resistance at 1.0725, with the predominant sentiment for the day being bearish.