**Weekly Forex Market Outlook (3rd–8th August 2025): Key Currency Pairs to Watch**
*Adapted and expanded with additional insight from the original article by Mahmoud Abdallah, DailyForex.com.*
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## Introduction
This week, the foreign exchange markets are positioned for heightened volatility amidst a series of critical economic events and notable price setups among major currency pairs. August 2025 begins with traders across the globe closely watching the US dollar’s performance, influenced by incoming US employment data, central bank commentary, and ongoing macroeconomic trends. This detailed outlook evaluates the most significant Forex pairs from 3rd to 8th August 2025 and provides traders with an in-depth technical and fundamental analysis for optimal decision-making.
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## Key Drivers for the Forex Markets
Several factors are poised to guide currency moves in the week ahead:
– **Non-Farm Payrolls (NFP) Report**: Scheduled for release on August 8th, this critical monthly figure will provide insights into US labor market strength and shape sentiment for the US dollar across all pairs.
– **Central Bank Communiques**: Ongoing signals from the Federal Reserve, European Central Bank (ECB), and Bank of Japan (BOJ) will influence expectations for interest rate paths.
– **Geopolitical Events**: Tensions in global hotspots and the state of international trade continue to impact risk sentiment and cross-border capital flows.
– **Second-tier Data**: US ISM data, services PMIs, German industrial orders, and Chinese trade statistics will also play roles in currency fluctuation.
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## EUR/USD: Awaiting NFP Drivers and ECB Reaction
*Current Price Range: 1.0900–1.1050*
The EUR/USD pair is starting August trading in the upper half of its summer range, stuck between conflicting signals from the US and Eurozone economies:
**Fundamental Analysis**
– The US dollar remains broadly influenced by speculation surrounding a potential Fed rate cut in Q4 2025. Any notable miss or overshoot in employment metrics this Friday could pull the USD sharply.
– The Euro area economy continues to show patchy recovery, with recent inflation data below ECB’s target, pushing markets to question the timing of a policy shift from Frankfurt.
– Political risks inside the Eurozone, alongside protracted war in Eastern Europe, undermine the euro’s upside chances.
**Technical Analysis**
– Bulls have repeatedly tested, but failed to breach, the 1.1050 resistance zone. This level remains critical; a clear close above it could open up a path toward the 1.1200 handle.
– On the downside, the 1.0900 support has held firm. A decisive break beneath this area may trigger further selling to 1.0830 and then the June-July lows.
– The daily Relative Strength Index (RSI) hovers near neutral, suggesting the pair requires a catalyst to induce a clear breakout.
**Strategy Considerations**
– Await
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