US retail sales fell 0.6% and sentiment slid to 51.0, cutting Fed hike bets. Gold neared $4,400, GBP/USD hit 1.3560 and EUR/USD topped 1.15.
GBPUSD
Source: Marketaux
GBP/USD has surged approximately 0.50% during Thursday's session, breaking through multiple key technical levels to reach its highest point since May 2026. The pair climbed decisively above the 100-hour moving average and the critical 50% retracement of the 2026 trading range at 1.3503, signaling strengthening bullish momentum. The advance has also extended beyond the July high of 1.35573, establishing new multi-month highs and opening the door for further upside. The breakaway from the 50% Fibonacci retracement is a significant technical development, as this level had previously served as a resistance ceiling. Traders should now watch the 1.3503 level as potential support on any pullback, while the next resistance zone lies near the 61.8% Fibonacci retracement of the 2026 range. With the price trading above both the moving average and the midpoint retracement, the technical bias remains firmly bullish. A sustained hold above the July high could attract additional buying pressure and momentum-driven flows toward higher targets.
GBPUSD
Sentiment:
Very Positive
Source: Finnhub
Global market sentiment has turned cautious on Thursday as escalating tensions in the Middle East and a sharp spike in crude oil prices weigh on risk appetite across asset classes. The geopolitical uncertainty is driving demand for traditional safe-haven currencies such as the Japanese yen, Swiss franc, and US dollar, while commodity-linked and risk-sensitive currencies face headwinds. Rising crude oil prices are adding inflationary pressures, which could complicate central bank rate decisions in the near term, particularly for energy-importing economies. Mixed corporate earnings updates and forward guidance have further dampened investor confidence, contributing to the risk-off tone. Currency traders should monitor USD/JPY and USD/CHF for safe-haven flows, while pairs like AUD/USD and NZD/USD may face downward pressure in this environment. Oil-sensitive currencies such as the Canadian dollar could see increased volatility as energy markets react to the geopolitical developments. Near-term direction will depend on whether Middle East tensions escalate further or diplomatic efforts ease market concerns.
USDJPY
USDCHF
AUDUSD
NZDUSD
USDCAD
Sentiment:
Negative
Source: Marketaux
The US dollar edged lower during the European session amid a mixed market mood, with safe-haven gold staging a rebound. The greenback faced broad-based selling pressure as multiple macro developments weighed on sentiment. The Bank of Japan is reportedly preparing for a September rate hike with an accelerated pace of tightening, bolstering the yen and pressuring USD/JPY. In Europe, French inflation re-accelerated in July with core prices also moving higher, while German wholesale prices bounced back as energy tax cut effects lapsed — both factors supportive of a firmer euro. The Swiss economy posted solid quarterly growth of 1.5% in Q2, lending support to the franc. Meanwhile, China's new bank loans contracted again in July for the second time, signaling persistent economic weakness in the world's second-largest economy and dampening risk appetite. Bitcoin lost the critical $64,000 support level, adding to the cautious market tone. Traders should monitor upcoming US data releases and BOJ communications for further directional cues on dollar pairs.
USDJPY
EURUSD
USDCHF
USDCNY
XAUUSD
Sentiment:
Negative
Source: Finnhub
The US dollar is seeing supportive flows during the Asia-Pacific session as President Trump announced new tariffs of up to 100% on drone imports, escalating trade tensions and boosting safe-haven demand for the greenback. Oil prices edged marginally higher on the news, reflecting concerns over potential supply chain disruptions and geopolitical risk premiums. The tariff announcement adds to an already protectionist trade agenda, which has historically supported USD strength against risk-sensitive currencies such as AUD and NZD, while weighing on commodity-linked pairs. The broader Asia-Pacific session saw muted price action, with markets digesting the implications of the latest trade policy escalation. Traders should monitor USD/CNH and AUD/USD for potential volatility as retaliatory measures from affected trading partners could materialize. Near-term, the dollar index may find support from sustained risk aversion, though prolonged trade conflicts could introduce stagflationary pressures that complicate the Federal Reserve's policy outlook. Key resistance for the DXY sits near recent highs, while commodity currencies face downside risk on deteriorating trade sentiment.
AUDUSD
NZDUSD
USDCNH
Sentiment:
Positive
Source: Finnhub
EUR/USD faces renewed downside pressure as geopolitical risk in Eastern Europe intensified following Latvia's shootdown of a drone over its territory, marking a significant escalation beyond the routine alert-and-clear incidents seen throughout 2026. The event required a NATO air defence mission to neutralize the threat over sovereign NATO territory, raising concerns about broader regional destabilization along the Russia-NATO frontier. Safe-haven flows are likely to benefit the US dollar, Swiss franc, and Japanese yen at the expense of the euro and other European currencies. Traders should monitor EUR/USD for potential tests of nearby support levels as risk sentiment deteriorates. EUR/CHF may also see selling pressure as Swiss franc demand increases on haven flows. The escalation adds a geopolitical risk premium to European assets and could weigh on ECB policy expectations if economic uncertainty deepens. Near-term, traders should watch for official NATO and EU responses, which could either calm markets or further amplify volatility across EUR pairs and broader risk assets.
EURUSD
EURCHF
EURJPY
USDJPY
USDCHF
Sentiment:
Negative
Source: Finnhub
