The US dollar is headed for its biggest weekly drop in eight months as markets ramp up bets on Federal Reserve rate cuts amid softer inflation and weak retail sales. This shift sends Treasury yields lower and lifts the euro, pound, and yen as investors anticipate easing monetary policies.
EUR/USD shows signs of recovery after recent lows near 1.0670 amid mixed market sentiment. The resilient US dollar, driven by strong economic data and Fed hawkishness, continues to weigh on the euro, which faces eurozone growth uncertainties and ECB dovish signals. Key levels to watch this week include eurozone CPI, US NFP data, and central bank commentary. Technical picture favors sellers, but a consolidation near 1.0670 may set the stage for a tentative rebound.
USD/CAD is facing near-term pressure after retreating from resistance near 1.3760, currently testing support around 1.3620. Technical indicators suggest momentum is waning, with RSI near neutral and MACD flattening. A rebound above 1.3620 could point to a bullish resumption toward 1.3700 and 1.3760, while a break below may open the door to deeper corrections toward 1.3570 and 1.3500. Medium-term trend remains cautiously bullish as long as key supports hold. Watch upcoming U.S. inflation and employment data alongside BoC signals for further direction.
Analysis credit: ActionForex.com
AUD/USD shows bullish momentum and could target 0.6555, says UOB Group. Key support holds at 0.6490, with technical signals like a golden cross and rising volumes reinforcing the outlook. Watch for a breakout above resistance for further upside potential. #Forex #AUDUSD #TradingAnalysis
USD/JPY edges up with modest bullish momentum but lacks strength for a clear breakout. Market watchers note cautious Fed outlook, steady BoJ policy, and technical resistance at 132.50 limit gains. Range-bound action likely until fresh catalysts emerge. #forex #USDJPY
Amundi forecasts the euro to gradually strengthen against the dollar by 2026 but expects resistance below 1.25 to limit gains. Interest rate convergence and a Eurozone rebound support modest appreciation amid ongoing geopolitical and structural challenges.
EUR/USD shows tentative recovery as the euro bounces from recent multi-week lows. The dollar’s momentum faces reassessment amid strong US labor data and inflation above target, delaying expected Fed rate cuts. Meanwhile, the ECB navigates sluggish Eurozone growth and persistent inflation, signaling cautious, gradual policy moves. Upcoming US inflation figures and ECB meetings will be key to watching the pair’s next direction. Original analysis by Justin McQueen via Forex Factory.
During the Asian session on Tuesday, USD/CAD remained under pressure near 1.4030 amid growing expectations of a Fed rate cut later this year, pressuring the U.S. dollar. Meanwhile, rising oil prices have supported the Canadian dollar, creating a dynamic interplay influenced by macroeconomic data, central bank signals, and geopolitical developments.
AUD/USD is showing resilience as it consolidates after a short-term pullback. Technical indicators remain bullish with the pair holding above key moving averages and support zones. Combined with positive Australian economic data and stable monetary policy outlooks, the uptrend looks set to continue in the weeks ahead. Original article credit: FxWirePro via EconoTimes.
USD/JPY edges slightly higher, supported by strong U.S. economic data and Fed’s hawkish stance, but lacks solid bullish momentum. Key resistance at 134.50-135.00 limits upside while BoJ’s dovish policy and geopolitical uncertainties keep traders cautious. Watch for a break above 135.00 or dip toward 132.00 for clearer direction. #Forex #USDJPY #MarketWatch
Credit: Original article by FxWirePro, published on EconoTimes.
