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EUR/USD, GBP/USD, DXY Price Forecast: Biden’s Tax Plan & US NFP In Play

By:
Arslan Ali
Published: Mar 8, 2024, 07:51 GMT+00:00

Key Points:

  • Biden's call for higher taxes may influence forex, spotlighting EUR/USD and GBP/USD movements.
  • Upcoming U.S. labor data and Eurozone economic indicators set to impact currency forecasts.
  • Dollar Index's current bearish trend under the pivot point could shift with market dynamics.
EUR/USD, GBP/USD, DXY Price Forecast: Biden’s Tax Plan & US NFP In Play

In this article:

EUR/USD and GBP/USD Price Forecast: Analysis and Events Ahead

President Joe Biden’s State of the Union address, advocating for increased corporate taxes and more affordable healthcare and housing, sets a significant backdrop for traders. This comes as the forex market anticipates critical economic data releases that could impact currency valuations.

Events Ahead

  • In the U.S., key indicators to watch include Average Hourly Earnings (expected at 0.2%), Non-Farm Employment Change (forecasted at 198K against a previous 353K), and the Unemployment Rate (anticipated to remain steady at 3.7%). These figures will offer insights into the labor market’s health and potentially influence the Dollar Index.
  • For the Eurozone, German Industrial Production surprisingly increased by 1.0%, hinting at economic resilience. Further data points like the French Trade Balance (expected at -6.5B) and Revised GDP q/q (projected at 0.0%) will provide a clearer picture of the Eurozone’s economic condition.

US Dollar Index (DXY)

Dollar Index
Dollar Index

On March 8, the Dollar Index remained steady at 102.778, with a pivot point at 102.906, acting as a crucial marker for determining the Index’s direction. It faces immediate resistance at 103.166, with subsequent levels at 103.428 and 103.634 potentially challenging upward movements.

Support is found at 102.517, with further buffers at 102.239 and 101.912 safeguarding against declines. The 50-Day and 200-Day Exponential Moving Averages, at 103.595 and 103.736 respectively, hint at underlying pressure, positioning the trend as bearish below the pivot.

EUR/USD Technical Forecast

EUR/USD Price Chart - Source: Tradingview
EUR/USD Price Chart – Source: Tradingview

About the Author

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.

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