Forex markets are reacting sharply to renewed US tariffs announced under former President Trump, impacting GBP/USD and the FTSE 100 amid political and economic uncertainty. UK PMI data slightly beats expectations, offering some support to the pound, while volatility persists as traders digest evolving trade tensions and government commentary.
Post-NFP volatility rocked USD/JPY as an initial breakout above 161.00 was swiftly rejected amid a softer dollar. Weak payroll revisions shifted Fed rate cut expectations, increasing pressure on JPY crosses like EUR/JPY and GBP/JPY. Watch key support around 159.80 for possible further downside. Originally reported by Justin McQueen, Forex Factory.
USD/JPY shows further signs of weakness, trading below key moving averages and forming lower lows. Bearish momentum builds amid dovish Fed outlook and cautious BoJ stance. Critical support at 140.30 and 139.50 in focus—traders urged to watch for potential continuation or reversal. #Forex #USDJPY #FXAnalysis
USD/CAD’s recent bullish momentum has faded amid key technical resistance near 1.3425 and weakening fundamentals. Technical indicators point to a bearish bias as price slips below moving averages and oscillators signal a downturn. On the fundamental side, a softer US economic outlook and moderated Fed tightening expectations contrast with steady Canadian inflation and oil prices, supporting the loonie. Together, these factors suggest downside risks for USD/CAD in the near term.
AUD/USD is climbing as the U.S. dollar weakens amid softer economic data and easing inflation pressures. With retail sales and industrial output underperforming and a steady Australian labor market, the Aussie gains appeal. Traders are recalibrating Fed expectations, supporting risk-sensitive currencies. For forex outlook, watch RBA signals and upcoming macro releases closely. #ForexAnalysis #AUDUSD
UK markets face heightened volatility as Trump’s tariff threats revive trade war fears, weighing on GBP/USD which tests key support near 1.2700. Latest UK PMI data shows slow growth: manufacturing contracts for the 10th month, services expand modestly—pressuring the pound. FTSE 100 sentiment remains fragile amid global uncertainty and fresh fiscal signals from Chancellor Reeves. Traders watch closely as these factors interplay in shaping near-term market moves. #Forex #UKMarkets #FTSE100
US June trade deficit narrowed more than expected, driven by higher exports and lower imports. This strengthened the US dollar and pressured EUR/USD, which slipped 0.3%. Data suggests resilient US economy and supports a hawkish Federal Reserve stance. Full analysis: https://www.xtb.com/int/market-analysis/news-and-research/us-june-trade-deficit-lower-than-expected-eurusd-slides-0-3
HSBC forecasts further yen weakness as the Bank of Japan adopts a cautious stance, likely waiting for the Federal Reserve’s next moves before hiking rates again. Diverging policies keep JPY under pressure against the dollar. Details: forexlive.com/news/hsbc-jpy-weakness
USD/CAD holds steady above 1.3770 amid renewed US dollar strength and key support measures from Canada’s government. Former BoC governor Mark Carney announced financial aid and export programs aimed at bolstering the struggling lumber industry, helping to stabilize the Canadian dollar despite oil price pressure. Market eyes upcoming US inflation data for next directional cues.
UBS projects AUD/USD to climb to 0.70 by early 2026, driven by easing US dollar strength, a rebound in Chinese demand, and narrowing interest rate gaps as the RBA maintains tighter policy. This outlook highlights a bullish phase ahead for the Australian dollar against the greenback. Report via InvestingLive.com.
