Currency Market Volatility: US Dollar and Japanese Yen Face Uncertainty

The US dollar's strength is expected to be reinforced if the US GDP data for Q3 shows solid growth, potentially leading to a sharp decline in EUR/USD and AUD/USD. The US economy is forecasted to have grown by 4.3% in Q3, with some investment banks predicting an even stronger expansion above 5.0%. While a strong GDP print may not result in another Fed rate adjustment for 2023, it could reinforce expectations of a prolonged restrictive stance and higher interest rates, creating a favorable environment for the US dollar. Technical analysis suggests potential downside for EUR/USD and AUD/USD, with key support and resistance levels identified.