NZD/USD is trading 0.4% higher at 0.5835, benefiting from strength in AUD/USD which surged following the Reserve Bank of Australia's hawkish policy decision. The RBA maintained its cash rate at 4.35% but shifted to a more aggressive tone on inflation concerns, boosting risk sentiment across commodity currencies. The kiwi's advance has been choppy during US trading hours, encountering resistance near 0.5850. Technical indicators show the pair testing its 50-day moving average at 0.5840, with immediate support at 0.5810. The correlation between AUD/USD and NZD/USD remains strong at 0.85, suggesting further gains are possible if the aussie maintains momentum. Traders are monitoring upcoming New Zealand Q3 GDP data and any spillover effects from RBA's stance on RBNZ policy expectations. A sustained break above 0.5850 could target the November high at 0.5880.
NZDUSD
AUDUSD
Sentiment:
Positive
Source: Finnhub
USDCAD has recovered 0.4% (55 pips) to 1.4280 after Friday's sharp 1.2% decline triggered by Canada's surprisingly strong employment data. The pair plummeted following Canada's second consecutive month of better-than-expected job gains, with employment rising by 51,000 positions against forecasts of 25,000. This robust labor market performance has shifted market sentiment, reducing expectations for aggressive Bank of Canada rate cuts. Technical indicators show the pair finding resistance near 1.4315 (38.2% Fibonacci retracement), with sellers actively defending this level. The 50-day moving average at 1.4290 is providing immediate resistance, while support lies at 1.4220 (Friday's low). Traders are closely monitoring whether this rebound represents a dead-cat bounce or the start of a more sustained recovery. The strength of Canadian employment data suggests further downside risks for USDCAD if US data disappoints this week.
USDCAD
Sentiment:
Negative
Source: Finnhub
Global futures markets are trading flat as investors exercise caution ahead of Wednesday's Federal Open Market Committee (FOMC) monetary policy decision. The lack of directional conviction reflects widespread uncertainty about the Fed's rate trajectory for 2025. Market participants are closely watching for any shifts in the dot plot projections and Powell's commentary on inflation progress. Oracle's upcoming earnings report adds another layer of complexity to market sentiment, potentially influencing tech sector flows that could impact risk appetite. Currency markets remain range-bound, with major pairs consolidating near recent levels. The dollar index holds steady as traders avoid significant positioning before the Fed announcement. Implied volatility has increased across FX options, suggesting expectations for larger moves post-FOMC. Traders should prepare for potential volatility spikes Wednesday afternoon as the Fed's decision could reshape currency market dynamics heading into year-end.
EURUSD
GBPUSD
USDJPY
Sentiment:
Negative
Source: Marketaux
Currency markets are experiencing heightened anxiety as Wednesday's Federal Open Market Committee decision approaches, with traders reluctant to establish significant positions. The dollar remains range-bound against major currencies as uncertainty prevails over whether the Fed will signal a pause in its easing cycle. Market sentiment is dominated by concerns about persistent inflation and its impact on future rate cuts. Recent economic data has been mixed, complicating the Fed's decision-making process. Currency implied volatilities have risen sharply, indicating expectations for substantial moves following the announcement. Major pairs like EUR/USD and USD/JPY are consolidating in tight ranges, awaiting directional catalysts. The Fed's updated economic projections and dot plot will be crucial for determining dollar strength into 2025. Traders are positioning defensively, with stop-losses clustered around key technical levels across major currency pairs ahead of what could be a market-moving event.
EURUSD
USDJPY
GBPUSD
Sentiment:
Neutral
Source: Marketaux
USDJPY is consolidating near 150.50, showing indecision ahead of Wednesday's Federal Reserve decision and Friday's Bank of Japan meeting. The pair has formed a symmetrical triangle pattern on the 4-hour chart, suggesting an imminent breakout. Technical indicators point to resistance at 151.00 and support at 149.80, with momentum oscillators remaining neutral. The DAX index is testing crucial resistance at 20,000, supported by expectations of ECB rate cuts and improving German economic sentiment. GBPUSD remains range-bound between 1.2700-1.2750, while AUDUSD struggles below 0.6450 amid China concerns. Traders are positioning for potential volatility spikes as central bank decisions loom. A hawkish Fed could propel USDJPY toward 152.00, while dovish surprises might trigger a breakdown toward 149.00. Risk sentiment remains fragile, with safe-haven flows ready to accelerate on any policy disappointments.
USDJPY
GBPUSD
AUDUSD
Sentiment:
Neutral
Source: Marketaux
EURUSD is trading in a tight range near 1.0580, down 0.1% intraday, as markets await Wednesday's Federal Reserve policy decision. The pair has formed a bullish pennant pattern on the daily chart, suggesting potential for an upside breakout if the Fed delivers a dovish surprise. Current positioning shows the pair compressed between support at 1.0540 (200-day MA) and resistance at 1.0620 (descending trendline). Market participants are pricing in a 25 basis point Fed rate cut with 85% probability, but focus remains on forward guidance and dot plot projections. A dovish tilt acknowledging slowing inflation could trigger a surge toward 1.0700 and potentially the mentioned 1.1700 level longer-term. However, French political uncertainty continues to cap euro gains, with government stability concerns weighing on sentiment. Technical momentum indicators remain neutral, awaiting a catalyst for directional conviction.
EURUSD
Sentiment:
Neutral
Source: Marketaux
Major currency pairs are experiencing heightened volatility ahead of the Federal Reserve's anticipated rate decision, with markets increasingly concerned about a potential 'hawkish cut' scenario. EURUSD has dipped 0.2% to 1.0570, struggling below the 1.0600 resistance as traders position defensively. GBPUSD remains pressured at 1.2720, down 0.15%, amid UK growth concerns. USDJPY shows relative strength at 150.60, supported by rising US yields and safe-haven flows. AUDUSD continues to underperform at 0.6430, weighed by China's economic slowdown and commodity weakness. The Fed is expected to cut rates by 25 basis points, but hawkish rhetoric emphasizing pause thereafter could strengthen the dollar across the board. Market positioning suggests vulnerability in risk-sensitive pairs if the Fed signals fewer cuts in 2025 than currently priced. Technical levels show USDJPY targeting 151.50 on hawkish outcomes, while AUDUSD risks breaking below 0.6400 support.
EURUSD
GBPUSD
USDJPY
AUDUSD
Sentiment:
Negative
Source: Marketaux
The US dollar index gained 0.2% following President-elect Trump's comments on potential tariff adjustments to combat inflation and his intention to prioritize immediate interest rate cuts when selecting the next Federal Reserve chair. Trump's policy signals suggest a more accommodative monetary stance ahead, which could initially weaken the dollar but may strengthen it if tariff policies effectively reduce import costs. His comments on Ukraine acknowledging Russia's stronger position and criticism of European handling added geopolitical uncertainty, supporting safe-haven dollar flows. The prospect of extended military operations in Latin America for anti-drug efforts could impact regional currencies, particularly the Mexican peso and Colombian peso. Technical indicators show USD index testing resistance at 106.50, with support at 105.80. Traders are positioning for increased volatility as Trump's policy framework becomes clearer, with particular focus on the intersection of tariff and monetary policy impacts on dollar strength.
USDMXN
USDCOP
Sentiment:
Positive
Source: Finnhub
EURUSD is trading flat at 1.0575, constrained by renewed French political turmoil and pre-FOMC positioning. The pair briefly touched 1.0600 in early European trading before retreating as French government instability concerns resurfaced, with Prime Minister Barnier facing no-confidence votes. Short-term US Treasury yields have risen 3 basis points to 4.25%, providing additional support for the dollar. Technical analysis reveals strong resistance at 1.0620 (50-day MA) and 1.0650 (November high), while support holds at 1.0550 (ascending trendline). The pair remains trapped in a 100-pip range as traders await Wednesday's Federal Reserve decision. Market dynamics suggest limited upside potential unless the Fed delivers an unexpectedly dovish message. French political uncertainty adds another layer of euro weakness, with potential government collapse threatening fiscal stability. Momentum indicators show bearish divergence on the 4-hour chart, suggesting further consolidation or mild downside ahead.
EURUSD
Sentiment:
Neutral
Source: Marketaux
GBP/USD is trading in a narrow 20-pip range around 1.2750, showing limited volatility as markets await Wednesday's Federal Reserve policy decision. The pair has gained 0.2% this week, supported by broad dollar weakness and improving UK economic sentiment. Recent UK data showed services PMI at 53.4, maintaining expansion territory and reducing recession fears. Markets are pricing in a 75% probability of a 25bp Fed rate cut, which could provide additional upside for cable. Technical analysis shows strong support at 1.2700 (psychological level and 20-day moving average), while resistance sits at 1.2800. The pair's implied volatility has dropped to monthly lows, suggesting range-bound trading until the Fed announcement. Traders should watch for any hawkish surprises from the Fed that could trigger dollar strength and pressure sterling lower.
GBPUSD
Sentiment:
Positive
Source: Marketaux
EUR/USD gained 0.1% to 1.0565 following Germany's stronger-than-expected October trade data, with the trade surplus expanding to €16.9 billion versus €15.6 billion forecast. The improvement was driven by resilient exports which rose 0.1% month-over-month against expectations of a 0.5% decline, while imports contracted 1.2%, more than the anticipated 0.5% drop. This marks a notable shift from September's robust 1.4% export growth and 3.1% import surge. Despite the positive surprise, the data is unlikely to alter the European Central Bank's monetary policy trajectory, with markets still pricing in potential rate cuts amid broader eurozone economic weakness. Technical resistance for EUR/USD remains at 1.0600, while support holds at 1.0500. The modest reaction suggests traders are awaiting more significant catalysts, including upcoming ECB policy meetings and US economic releases that could drive more substantial moves in the pair.
EURUSD
Sentiment:
Neutral
Source: Finnhub
AUD/USD surged 0.8% to 0.6635 after breaking above the critical 0.6605 resistance level, confirming a major bullish trendline breakout ahead of Tuesday's Reserve Bank of Australia policy meeting. The pair's technical indicators strongly support further upside, with MACD showing firm positive momentum and RSI rebounding sharply from near-oversold conditions below 30 to current levels near 55. The breakout above the descending trendline that capped gains since October signals a potential trend reversal. Immediate resistance lies at 0.6680 (November high), while the 0.6605 breakout level now serves as key support. Market participants are positioning for a hawkish RBA stance, with inflation remaining elevated at 3.5% year-over-year, well above the central bank's 2-3% target range. A hold at 4.35% with hawkish forward guidance could propel AUD/USD toward 0.6700, while any dovish surprise might trigger a retest of 0.6605 support.
AUDUSD
Sentiment:
Very Positive
Source: Marketaux
USD/JPY faces downward pressure as Japanese Prime Minister Takaichi signals readiness for foreign exchange intervention, emphasizing the government will take "appropriate actions if necessary." The yen has weakened significantly in recent sessions, prompting increased concern from Japanese officials despite expectations of an upcoming Bank of Japan rate hike. Takaichi stressed the importance of currency stability reflecting fundamentals and confirmed authorities are "watching market moves closely." The intervention rhetoric intensifies as USD/JPY trades near multi-month highs, with the 150.00 psychological level acting as a key resistance. Market participants now face heightened intervention risk above this threshold, potentially limiting further yen weakness. Technical indicators suggest immediate support at 148.50, while a break below could accelerate yen strength toward 147.00. Traders should monitor Japanese official comments and any unusual price action that might signal actual intervention, particularly during Asian trading hours.
USDJPY
Sentiment:
Negative
Source: Finnhub
USD/JPY advanced 0.4% to 155.85 during Asian trading, testing a key resistance level as dollar strength and yen weakness converge. The pair has gained over 250 pips from last week's 153.30 low, driven by widening US-Japan yield differentials with the 10-year spread expanding to 365 basis points. Technical momentum remains bullish, with the pair trading above all major moving averages and RSI at 68, approaching overbought territory. A decisive break above 155.85 would open the path to 156.20, the November peak, while failure to clear resistance could trigger a pullback to 155.00 support. Bank of Japan officials have remained notably quiet despite the yen's weakness, suggesting tolerance for current levels ahead of next week's policy meeting. Market positioning data shows speculative shorts in yen remain elevated, indicating potential for further USD/JPY gains if US economic data continues to support dollar strength.
USDJPY
Sentiment:
Positive
Source: Marketaux
The US Dollar Index dropped 0.8% to 105.20 during the week ending December 5, with USD weakness accelerating across major pairs as markets priced in a 95% probability of a 25 basis point rate cut at the December 10 FOMC meeting. EUR/USD gained 120 pips to 1.0580, while GBP/USD rose 0.9% to 1.2740, and USD/JPY retreated to 149.50. The dollar's decline reflects growing consensus that the Fed will ease monetary policy amid cooling inflation data and moderating labor market conditions. Technical indicators show the DXY breaking below its 50-day moving average at 105.80, opening the path toward 104.50 support. Traders are particularly focused on Fed Chair Powell's forward guidance, which could signal the pace of future rate cuts in 2024. A dovish tone could accelerate USD selling pressure, potentially pushing EUR/USD toward 1.0650 resistance.
EURUSD
GBPUSD
USDJPY
Sentiment:
Negative
Source: Marketaux
Risk sentiment has shifted to cautious mode as forex markets await Wednesday's FOMC decision, with implied volatility rising across major USD pairs. EUR/USD consolidated near 1.0570, while GBP/USD held steady at 1.2720, as traders reduced position sizes ahead of the high-impact event. Market participants are nearly unanimous in expecting a 25bp rate cut, but uncertainty surrounds Fed Chair Powell's forward guidance for 2024 monetary policy. Options markets show elevated demand for USD hedges, with one-week implied volatility for EUR/USD jumping to 8.5% from 6.2% last week. Asian session flows remained subdued, with USD/JPY trading in a tight 149.30-149.70 range. The key focus will be the Fed's dot plot projections and Powell's comments on the pace of future easing. A hawkish surprise limiting 2024 cuts could spark a USD rally, while confirmation of multiple cuts would likely extend recent dollar weakness.
EURUSD
GBPUSD
USDJPY
Sentiment:
Neutral
Source: Marketaux
US Dollar futures extended their decline for the 10th session in 11 trading days, with March 2024 DXY futures dropping 0.4% to 104.85 as markets fully price in Wednesday's expected Fed rate cut. The persistent selling pressure has pushed the dollar to two-week lows against major currencies, with EUR/USD futures advancing to 1.0590 and GBP/USD futures climbing above 1.2750. Technical momentum indicators show oversold conditions on the daily RSI at 28, suggesting a potential bounce if the Fed delivers a hawkish surprise. However, fund flow data reveals continued USD liquidation by institutional investors positioning for a dovish Fed pivot. Currency futures positioning data shows record short USD positions among leveraged funds. The sustained weakness reflects growing conviction that the Fed's tightening cycle has peaked, with markets now pricing in 100 basis points of cuts through 2024.
EURUSD
GBPUSD
Sentiment:
Very Negative
Source: Marketaux
The US Dollar Index is testing critical support at 98.5 as markets position ahead of the Federal Reserve's expected rate cut decision. The dollar has weakened 0.2% against major currencies, with EUR/USD rising to 1.0580 and USD/JPY pulling back to 149.80. Market consensus points to a 25 basis point rate cut at the upcoming FOMC meeting, with futures pricing in an 85% probability. Technical indicators show the DXY struggling to maintain momentum above the 98.5 level, which represents the 50-day moving average and a key psychological threshold. A breakdown below this support could accelerate dollar selling toward 97.80, while successful defense might trigger a rebound to 99.20 resistance. Traders are closely monitoring US economic data releases this week, including inflation figures that could influence the Fed's dovish stance and determine whether the dollar's recent strength can be sustained.
EURUSD
USDJPY
DXY
Sentiment:
Negative
Source: Marketaux
EUR/USD has gained modest ground following the release of better-than-expected Eurozone Sentix investor confidence data for December, which came in at -6.2 versus the -7.0 forecast and improved from November's -7.4 reading. This marks the fourth consecutive monthly improvement in sentiment readings for some regions, suggesting ongoing stabilization in the Eurozone economy despite the overall index remaining in negative territory. The data provides mild support for the euro as investors interpret the trend as a potential bottoming in economic conditions. While the improvement is encouraging, the negative reading still reflects cautious investor sentiment toward Eurozone growth prospects. Near-term resistance for EUR/USD likely sits around 1.0600-1.0650, while support could be found near 1.0500. Traders should monitor upcoming ECB communications and US economic data releases for clearer directional cues, as the pair remains range-bound amid mixed economic signals from both regions.
EURUSD
Sentiment:
Neutral
Source: Finnhub
USD/CHF remains unchanged at 0.8815 following Switzerland's November SECO consumer confidence data, which improved to -34 from October's -37, matching market expectations. The index has remained deeply negative since 2022 but continues its gradual recovery from the October 2023 trough of -52.5. The marginal improvement in consumer sentiment reflects ongoing economic challenges in Switzerland, though conditions are slowly stabilizing. The Swiss National Bank (SNB) is not expected to alter its monetary policy stance in the near term, maintaining its current interest rate levels. Technical analysis shows USD/CHF trading within a narrow range, with immediate resistance at 0.8850 and support at 0.8780. The lack of market reaction to this data release underscores its limited impact on forex trading decisions, with traders focusing more on major central bank policies and global risk sentiment for directional cues in the Swiss franc pairs.
USDCHF
Sentiment:
Positive
Source: Finnhub
