**Weekly Forex Market Analysis: Key Pairs in Focus (August 3rd – 8th, 2025)**
*Original insights by Daniel John for DailyForex.com*
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The first full trading week of August 2025 presents several fresh opportunities and potential risks across major and minor Forex pairs. As global monetary policy approaches a key intersection, traders need to remain alert to shifting fundamentals, technical chart structures, and evolving risk sentiment. This analysis explores the primary currency pairs likely to influence trading for the week of August 3rd to 8th, providing an in-depth outlook built upon DailyForex’s coverage and additional market perspectives.
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## Market Sentiment and Backdrop
Last week’s trading was marked by a cautious optimism. Equity markets hovered near all-time highs while foreign exchange traders adjusted positions in advance of key central bank updates. The U.S. Federal Reserve’s late July policy meeting signaled patience regarding interest rate adjustments, emphasizing the need for further inflation moderation before pursuing additional cuts. Meanwhile, several other major central banks—such as the European Central Bank (ECB) and the Bank of England (BoE)—are facing similar crossroads as recent economic data raise mixed signals on growth and inflation.
For the coming week, attention will center on:
– U.S. non-farm payrolls (released August 2nd) and their lingering impact on the dollar and associated crosses
– Eurozone inflation and GDP data, which will influence EUR-sensitive pairs
– Japanese intervention risks as the yen approaches multi-decade lows
– Commodities-driven currencies such as the Australian and Canadian dollars, responding to commodity prices and domestic releases
– Technical developments, with several pairs at or near significant support/resistance zones
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## EUR/USD Analysis
The euro-dollar pair remains the most traded and watched currency pair in the world. Throughout July, EUR/USD showed moderate volatility, fluctuating within a well-defined range as traders weighed the divergent outlooks for ECB and Fed policy.
### Technical Perspective
– Currently, EUR/USD is trading around 1.0860, having rebounded off the 1.0800 support area.
– The near-term resistance lies at 1.0935, with a break above raising the probability of a touch towards 1.1000.
– Should the pair fail at current levels, renewed selling could target support at 1.0775 and then towards late May’s low near 1.0710.
### Fundamental Outlook
– Euro area CPI inflation data and Q2 GDP growth numbers this week are set to be pivotal.
– Soft data could undermine the euro, especially if U.S. job market strength puts upward pressure on the dollar.
– ECB policymakers remain cautious, with recent comments highlighting persistent risks to the inflation outlook.
### Trading Strategy
– Watch for confirmed breakouts above 1.0935 to pursue bullish setups, targeting moves towards 1.1000.
– Conversely, a rejection under 1.0800 and closing below
Read more on AUD/USD trading.