The dollar was also undercut by the sharp -8 bp decline in the 10-year T-note yield, which undercut the dollar’s interest rate differentials.
USDJPY
Source: Marketaux
XAU/USD has surged past the critical $3500 resistance level, completing a five-month consolidation pattern that began after reaching record highs in April. The precious metal has been in a parabolic bull market since breaking above $2000 post-pandemic, with the current breakout validating the long-term uptrend. Technical indicators suggest strong momentum as gold cleared the consolidation range with increased volume, targeting the next psychological level at $3600. The breakout is supported by ongoing concerns about global economic uncertainty and expectations of Federal Reserve rate cuts beginning in September. Traders are closely watching the $3500 level, which should now act as support, while the 20-day moving average at $3450 provides additional backing. The textbook nature of this breakout pattern suggests continued bullish momentum, with potential acceleration if upcoming US employment data disappoints and reinforces dovish Fed expectations.
XAUUSD
Sentiment:
Very Positive
Source: Finnhub
US 2-year Treasury yields have plummeted 10 basis points to their lowest levels since 2022, signaling aggressive Fed rate cut expectations and weakening the dollar across major pairs. The sharp decline in yields reflects growing market concerns about US growth prospects amid Trump administration tariff policies, with traders now pricing in deeper rate cuts from the Federal Reserve. The yield movement represents a dramatic shift from earlier inflation concerns to growth worries, as recent data suggests the US jobs market and economic expansion are showing signs of stress. This development has pushed USD/JPY lower by 0.8% and EUR/USD higher by 0.6% in today's session. Technical indicators point to further dollar weakness, with the DXY index breaking below the 104.50 support level. Traders should monitor upcoming US employment data closely, as disappointing figures could accelerate the current dollar selloff and prompt even more aggressive Fed easing expectations.
EURUSD
USDJPY
Sentiment:
Very Negative
Source: Finnhub
The US dollar remains under pressure across major pairs as traders position ahead of Friday's crucial Non-Farm Payrolls report, with markets firmly pricing in a 25 basis point Federal Reserve rate cut in September. Recent weak US labor market indicators have intensified concerns about economic slowdown, pushing the dollar index down 0.2% in early trading. Market sentiment reflects growing conviction that the Fed will begin its easing cycle this month, with CME FedWatch tool showing over 70% probability of a September cut. Asian and European currencies have gained ground against the greenback, with EUR/USD testing 1.1100 resistance and GBP/USD holding above 1.3150. The upcoming NFP report is expected to show job growth of 165,000, down from 187,000 previously, with any significant miss likely to accelerate dollar weakness. Technical analysis shows the DXY approaching key support at 101.50, with a break below potentially triggering further declines toward the 101.00 psychological level.
EURUSD
GBPUSD
DXY
Sentiment:
Negative
Source: Marketaux
GBP/USD is trading in a tight range around 1.3150, showing cautious consolidation ahead of Friday's pivotal US Non-Farm Payrolls release. The pair has gained 0.1% in quiet trading, supported by broad dollar weakness following disappointing US employment indicators earlier this week. Wednesday's ADP employment data showed private payrolls increased by only 99,000, well below the 145,000 forecast, heightening concerns about labor market deterioration. Sterling remains resilient despite mixed UK economic data, with services PMI holding above the 50 expansion threshold at 53.7. Technical indicators show GBP/USD trapped between resistance at 1.3180 and support at 1.3120, with a breakout likely following the NFP release. A weaker-than-expected jobs report could propel the pair toward 1.3200, while strong data might trigger a pullback to test the 1.3100 support zone. Implied volatility has increased, suggesting traders expect significant movement post-NFP.
GBPUSD
Sentiment:
Neutral
Source: Marketaux
USD/CAD has declined 0.4% to 1.3540, pressured by growing concerns about US labor market weakness that have strengthened Federal Reserve rate cut expectations for September. The Canadian dollar has outperformed despite mixed domestic data, benefiting from stable oil prices near $71 per barrel and broad-based US dollar selling. Markets are now pricing in a 75% probability of a 25 basis point Fed cut this month, up from 65% last week, following a series of disappointing US employment indicators. Bank of Canada is also expected to cut rates next week, but the diverging economic outlooks favor CAD strength. Technical analysis shows USD/CAD breaking below the 50-day moving average at 1.3565, opening the path toward 1.3500 psychological support. The pair faces immediate resistance at 1.3580, with a break above needed to neutralize the bearish momentum. Traders await Friday's NFP data, which could accelerate the downtrend if it confirms labor market deterioration.
USDCAD
Sentiment:
Very Negative
Source: Marketaux
GBP/USD is trading sideways around 1.2750, showing minimal movement as traders adopt a cautious stance before key US economic releases. The pair has consolidated in a tight 20-pip range during the European session, reflecting market uncertainty about the direction of both currencies. Sterling's resilience comes despite ongoing concerns about UK economic growth, while dollar movements remain muted ahead of critical US data that could shape Federal Reserve policy decisions. Technical analysis shows immediate resistance at 1.2780 (50-day moving average) and support at 1.2720 (previous week's low). The pair's neutral stance suggests traders are awaiting clearer signals from upcoming US employment and inflation figures, which could trigger a breakout from the current range. A positive surprise in US data could push the pair below 1.2700, while disappointing numbers might propel cable toward the 1.2850 resistance zone.
GBPUSD
Sentiment:
Neutral
Source: Marketaux
USD/CAD is trading sideways near the 1.3550 level as traders adopt a cautious stance before Friday's pivotal US Non-Farm Payrolls release. The pair has consolidated within a tight 30-pip range over the past 24 hours, reflecting market uncertainty about the Federal Reserve's next policy moves. Analysts expect the US economy to have added 185,000 jobs in August, with the unemployment rate holding at 4.3%. Any significant deviation from these forecasts could trigger substantial volatility in the dollar pairs. The Canadian dollar remains supported by steady oil prices around $68 per barrel and expectations that the Bank of Canada will maintain its current pause after aggressive rate hikes. Technical indicators suggest USD/CAD faces immediate resistance at 1.3580 and support at 1.3520. A strong jobs report exceeding 200,000 could propel the pair toward 1.3600, while disappointing data might see it test the 1.3500 psychological support.
USDCAD
Sentiment:
Neutral
Source: Marketaux
