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The U.S. dollar faces headwinds ahead of key economic data releases this week, as markets weigh inflation and employment reports that will influence Fed policy. Adding to the uncertainty is the looming risk of a U.S. government shutdown if Congress fails to pass funding bills by Friday. These factors are keeping risk appetite subdued, with the dollar trading cautiously against major currencies amid a defensive market mood.

Sterling struggles near 1.2708 as GBP/USD faces headwinds from strong US economic data and a resilient Dollar. Ongoing UK growth concerns, political uncertainty, and diverging monetary policies keep pressure on the Pound. Support at 1.2700 critical; breach may signal further downside risk. Traders should watch Fed and BoE cues closely.

A leading investment bank projects GBP/USD to trade in a narrow 1.3320–1.3420 range through 2025, citing converging US-UK growth and monetary policies alongside muted risk appetite. This forecast underscores expectations of limited currency volatility despite ongoing economic and political developments.

GBP/USD remains volatile as traders weigh mixed UK data against Fed’s hawkish tone. Key events this week—including UK GDP and US Core PCE inflation—could drive direction. Watch support near 1.2500 and resistance around 1.2700 for potential breakout moves. Stay tuned for updated trends. #forex #GBPUSD #DailyForex

Weekly Forex Forecast: DXY remains supported by strong U.S. jobs data and higher yields, eyeing resistance near 105.50–106.00. EUR/USD faces headwinds after ECB’s cautious rate cut, trading below 1.0820 resistance. GBP/USD reflects mixed UK data amid Brexit uncertainties, with key levels around 1.2650 and 1.2750. USD/JPY holds above 142 on Fed hold bets and safe-haven demand. Watch for rate guidance and macro releases to steer trends this week.
Credit: Justin Paolini, Forex Factory (June 9, 2024).

Weekly Forex Forecast: DXY remains under pressure after breaking below 104.60, with key support near 104.00 and 103.40. EUR/USD tests resistance around 1.0890–1.0900—watch for a breakout above 1.0900 to fuel gains toward 1.1000 or a rejection leading to a pullback. GBP/USD and USD/JPY demand careful monitoring of central bank cues and risk sentiment to gauge directional bias. Stay tuned for key levels and market-moving events this week.
— Analysis by Justin Bennett at Forex Factory

Weekly Forex Forecast:
The US Dollar Index (DXY) shows resilience supported by persistent inflation and cautious Fed signals, holding key support near 102.00. Resistance lies at 104.00–105.00 if hawkish cues emerge. EUR/USD faces downward pressure amid ECB’s dovish stance versus Fed’s relative hawkishness, with support at 1.0720 and resistance near 1.0820. GBP/USD and USD/JPY remain sensitive to global growth concerns and central bank policies. Watch upcoming inflation data and Fed/ECB commentary for directional clues.
Source: ForexFactory.com | Author: Justin McQueen

Weekly Forex Forecast by Justin Bennett | Credit: ForexFactory.com

As traders digest recent U.S. data and await key central bank decisions, the DXY remains pivotal. The index holds above 105.00, eyeing resistance near 106.00, with support around 104.30. EUR/USD tests minor support near 1.0770; a break below 1.0700 could signal further downside. GBP/USD and USD/JPY await cues from Fed/ECB guidance. Watch for volatility around inflation releases and FOMC statements this week.

Last week’s Federal Reserve, ECB, and BoE meetings confirmed no near-term rate cuts, fueling US dollar strength and euro weakness.
– **DXY** reclaimed 105.00; watch resistance at 106.00–106.50 for breakout potential.
– **EUR/USD** dropped below 1.0800; support at 1.0700 critical to hold.
– **GBP/USD** faces pressure with BoE’s cautious tone; key levels near 1.2300.
– **USD/JPY** steadied above 145.00 amid risk sentiment swings.
Follow Justin Bennett’s analysis on Forex Factory for detailed setups and market context going into the new week.

Weekly Forex Forecast: DXY remains range-bound, eyes on Fed policy and inflation data as resistance near 105.50 holds. EUR/USD tests support around 1.0650 amid ECB rate cut bets and moderating Eurozone inflation. GBP/USD looks poised near 1.25 support ahead of UK GDP and labor data, with BoE rate decision in focus. USD/JPY faces resistance near 146 amid mixed BOJ signals and US yield trends. Key data and central bank guidance to set the tone this week.