**Key Forex Pairs to Watch: 3rd to 8th August 2025**
*Original author: written by DailyForex Financial Writing Team*
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The forex market is continuously driven by a blend of global economic data, central bank decisions, geopolitical events, and market sentiment. The trading week from August 3 to August 8, 2025, presents a variety of compelling opportunities and risks for forex traders. During this period, participants should keep a close watch on key currency pairs as vital macroeconomic reports and central bank activities unfold across several major economies. This article delves deep into the technical and fundamental landscape for the most prominent forex pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, and gold (XAU/USD), taking into account the economic calendar and relevant technical considerations. By understanding the primary forces at play, traders can better position themselves for the week ahead.
### 1. EUR/USD: Market Outlook and Key Drivers
The EUR/USD remains one of the most actively traded currency pairs globally, with significant liquidity and volatility. At the beginning of August, this pair is primarily influenced by the following factors:
**Fundamental Drivers:**
– Release of Eurozone PMI data, inflation figures, and German industrial production numbers.
– US Non-Farm Payrolls (NFP) and ISM Services PMI, both scheduled for the week and likely to set the USD tone.
– Ongoing speculation around the European Central Bank’s (ECB) interest rate path, with inflation remaining a persistent concern.
– Political uncertainty in some Eurozone member states.
**Technical Perspective:**
– The pair has been trading within a defined channel for the last few weeks.
– Support is observed near the 1.0800 level, which served as a bounce point recently.
– Immediate resistance can be seen at 1.0950, a previous reversal level and in proximity to the 50-day moving average.
– On the daily chart, a sustained close above this resistance may propel the market toward the 1.1050 zone.
– Indicators such as the Relative Strength Index (RSI) are currently neutral, indicating the market could move sharply in either direction depending on upcoming data.
**Trading Considerations:**
– Watch for a breakout from the prevailing range, especially in response to major economic releases.
– Be prepared for increased volatility around the US NFP announcement.
### 2. GBP/USD: Navigating UK and US Data
GBP/USD traders will have much to consider, with a focus on both economic data and central bank rhetoric.
**Core Catalysts:**
– Bank of England (BoE) policy expectations, particularly regarding inflation and interest rates.
– UK GDP and manufacturing data due during the week, which could further clarify the economic outlook.
– Parallel movement from the US, given the critical employment data and ISM Services PMI.
**Technical Outlook:**
– The daily chart indicates firm support near the 1.2600 handle
Read more on AUD/USD trading.