The Canadian dollar faced strong pressure last week as falling oil prices and weaker trade data weighed on the currency. Meanwhile, solid U.S. economic reports and hawkish Fed signals bolstered the USD, pushing USD/CAD to multi-week highs. The outlook for CAD remains challenged heading into Q4 amid softening demand and economic signals.
Forex Market Update (Oct 4, 2025): Divergent central bank policies are driving volatility—Fed’s hawkish tone supports the USD, while ECB’s cautious stance weighs on the Euro. Japan’s ultra-loose policy keeps the Yen weak. Key economic data, including US Non-Farm Payrolls and Eurozone GDP, remain critical. Geopolitical tensions maintain safe-haven demand for USD and JPY. Traders should monitor interest rate expectations and global risks to navigate current trends. #Forex #MarketAnalysis
GBP/USD holds steady near 1.34 amid heightened uncertainty as fiscal risks and a potential US government shutdown weigh on markets. Sterling gains some support from UK’s fiscal discipline efforts, but growth challenges and inflation keep the outlook cautious. Traders eye key technical levels for direction. Full analysis by TradingNews.com.
Stephen Miran reaffirms the Federal Reserve’s commitment to a data-driven, gradual approach toward reducing interest rates to reach a neutral stance. Despite persistent inflation and a strong labor market, cautious policy easing remains the long-term objective to balance growth and price stability.
Sanae Takaichi’s win in Japan’s LDP leadership race signals sustained fiscal stimulus and accommodative monetary policy, expected to propel equities higher. However, increased spending and bond issuance may weigh on the yen and government bonds, reflecting market concerns over inflation and fiscal balance.
USD/CAD saw notable volatility last week as the Canadian dollar weakened amid slipping oil prices and disappointing trade data. With crude prices down 8% and a larger-than-expected trade deficit, the CAD struggled despite stable BoC policy. Meanwhile, strong US economic data and higher Treasury yields supported the USD. Watch for further CAD pressure unless oil stabilizes or Canadian data improves.
The 2024 forex market is marked by volatility driven by diverging central bank policies, shifting economic data, and geopolitical risks. The US dollar retains safe haven status amid Fed’s cautious stance on rates, while the Japanese yen remains weak as the Bank of Japan maintains ultra-loose policy. Traders closely watch key pairs like EUR/USD and USD/JPY for signals on monetary divergence and inflation trends. Insights from Mitrade, Reuters, and Bloomberg underline the complex interplay shaping currency moves today.
Credit Agricole forecasts GBP/USD reaching 1.33 by the end of 2026 amid ongoing monetary policy divergence, UK growth challenges, and shifting global risk sentiment. Expect sideways trading near 1.25-1.28 through 2024, with a gradual sterling appreciation thereafter as UK economic stability improves.
(Source: James Buckley, ExchangeRates.org.uk)
Forex Market Update: The USD holds on to recent gains as it consolidates near key levels ahead of important U.S. economic data this week. Traders focus on non-farm payrolls and jobless claims, which will influence Federal Reserve rate outlooks and currency trends. Stay tuned for shifts in momentum.
Sanae Takaichi’s victory in Japan’s LDP election boosts stocks on expectations of fiscal stimulus and loose monetary policy. Meanwhile, the yen weakens sharply and Japanese government bonds face pressure amid prospects of prolonged easing and increased government spending. Markets stay watchful for evolving economic policies. #JapanEconomy #Takaichi
