The focus this week in the US economic calendar is on the eagerly awaited release of January’s PCE data on Friday. A stronger-than-expected report could boost the US dollar, while subdued results may have a bearish impact on the currency. This article analyzes the short-term technical outlook for three key FX pairs: EUR/USD, USD/JPY, and GBP/USD.
On Friday, Wall Street will be on edge as core PCE data, the Fed’s preferred inflation indicator, is released. This report is expected to increase volatility and potentially alter market sentiment. Sticky price pressures, along with robust job growth and reaccelerating wages, may prompt the FOMC to delay easing cycle start, leading to fewer cuts than anticipated and a shift towards a more hawkish outlook for interest rates.
In terms of technical analysis, EUR/USD’s rebound could rally towards 1.0890 with a push above the 200-day simple moving average at 1.0825. GBP/USD faces resistance at 1.2680, with a potential move towards 1.2725. USD/JPY is hovering near resistance at 150.85, eyeing a rally towards highs near 152.00. Traders should keep a close eye on key support and resistance levels for potential trading opportunities.
