**Weekly Forex Market Analysis: Focus on EUR/USD, GBP/USD, and USD/CAD**
*Based on analysis by Fawad Razaqzada, originally published at FXStreet*
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As financial markets navigate a period marked by uncertain economic prospects and central bank policy shifts, major currency pairs like EUR/USD, GBP/USD, and USD/CAD are drawing increased attention from traders and investors. Movements in these pairs are being dictated by several key factors including changing interest rate outlooks, macroeconomic data releases, and broader risk sentiment. This comprehensive weekly analysis explores the latest trends and prospects for each pair, drawing from FXStreet’s expert commentary and supplementary industry insights.
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**1. EUR/USD: The Struggle Around Key Levels**
– **Recent Performance:** The euro-dollar pair has exhibited notable volatility recently, fluctuating between optimism generated by stronger Eurozone data and caution prompted by a resilient US dollar. As the European Central Bank (ECB) continues its rate-holding posture, the Federal Reserve’s potential for maintaining higher rates keeps the dollar broadly supported.
– **Central Bank Contrasts:**
– The ECB opted to hold rates steady following hints at declining inflation pressures. Official communication, however, has leaned dovish, indicating that policymakers might consider easing should economic growth slow further.
– In contrast, the Federal Reserve’s stance has remained hawkish relative to major peers. Although inflation is showing some moderation in the US, labor market strength and service sector persistence could delay any rate cut.
– **Key Economic Data to Watch:**
– Eurozone inflation estimates and gross domestic product (GDP) updates remain critical for gauging ECB policy intentions.
– In the US, Federal Reserve speeches and nonfarm payrolls data bring volatility, often reinforcing dollar strength when numbers surpass expectations.
– **Technical Picture:**
– The EUR/USD recently struggled to sustain a move above 1.0830, with subsequent selling pressure taking it back towards the 1.0700 support region.
– The 200-day simple moving average (SMA) is acting as dynamic support, but if breached decisively, could open a path toward 1.0600.
– Persisting below 1.0830 refuses the pair entry into bullish territory, keeping bears firmly in control as long as the dollar retains its advantage.
– **Outlook Commentary:**
– According to Fawad Razaqzada’s FXStreet analysis, the near-term bias remains to the downside unless clear bullish catalysts emerge from the Eurozone. Seasonal factors and forthcoming US data releases could exacerbate swings.
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**2. GBP/USD: Navigating Economic Uncertainty**
– **Recent Movements:** The British pound has been volatile, facing pressure from both domestic and international developments. Sterling lost ground after dovish signals from the Bank of England and renewed worries over the UK’s sluggish economic growth.
– **Drivers Affecting the Pound:**
– Bank of England policies remain at the forefront. While
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