Weekly Forex Forecast: August 24–29, 2025
The forex market faces heightened volatility amid contrasting economic signals across major economies. The US dollar remains supported by strong data and persistent inflation, keeping Fed rates elevated into 2026. Divergent central bank policies add complexity: the ECB stays dovish, BoE shows caution, and BoJ hints at gradual tightening.
EUR/USD appears bearish to neutral, pressured by weak eurozone indicators and recession concerns in Germany. Key support lies near 1.0635, while rallies toward 1.0800 may be met with selling interest.
GBP/USD faces downside risks amid UK slowdown signs, with rate hike pauses on the table. Watch support around 1.2600–1.2655 for potential bounces.
Traders should monitor economic releases and central bank commentary for directional cues as global macro uncertainties persist.
By Adam Lemon | DailyForex