EUR/USD trades defensively at 1.0610, down 0.1% in early European trading after touching a two-week high of 1.0650 on Monday. The pair consolidates ahead of crucial Eurozone HICP inflation data expected to show 2.3% year-over-year growth, up from 2.0% previously. German employment figures due simultaneously could influence ECB policy expectations, with unemployment rate forecast steady at 6.0%. The euro found support from yesterday's better-than-expected Eurozone manufacturing PMI at 45.2, though readings remain in contraction territory. Technical analysis reveals strong resistance at 1.0650 (two-week high), while the 1.0600 psychological level provides immediate support. The 200-day moving average at 1.0585 marks a critical level for maintaining bullish momentum. Traders await inflation data for clues on ECB's December meeting stance, with higher readings potentially supporting euro strength despite broader economic headwinds.
EURUSD
Sentiment:
Neutral
Source: Marketaux
The US Dollar Index (DXY) weakens 0.3% to 105.80 as selling pressure persists across major currency pairs. EUR/USD gains 0.2% to 1.0620, while USD/JPY drops 0.4% to 151.20, reflecting broad-based dollar weakness. Market participants increasingly price in Federal Reserve rate cuts for Q1 2025, with futures showing 65% probability of a 25-basis-point reduction by March. Recent US economic data disappointments, including ISM Services PMI falling to 52.1 from 54.5, fuel concerns about economic momentum. Technical analysis of DXY shows breakdown below 106.00 support, with next target at 105.50 (November low). EUR/USD eyes resistance at 1.0650, while USD/JPY support emerges at 151.00. The dollar's vulnerability stems from shifting Fed expectations, elevated US fiscal deficits, and improving global risk sentiment reducing safe-haven demand. Continued weakness likely unless upcoming US data significantly exceeds expectations.
EURUSD
USDJPY
Sentiment:
Negative
Source: Marketaux
EUR/USD is trading in a narrow range ahead of today's Eurozone Flash CPI release, with markets expecting headline inflation to remain steady at 2.1% year-over-year and core CPI unchanged at 2.4%. The data, scheduled for release during the European session, is unlikely to materially impact European Central Bank policy decisions as officials maintain their data-dependent stance while monitoring broader economic developments. Current inflation levels remain above the ECB's 2% target, supporting the central bank's cautious approach to further rate cuts. Technical indicators suggest EUR/USD continues to consolidate within recent ranges, with immediate resistance at 1.0600 and support around 1.0520. Traders should note that while the CPI print may cause short-term volatility, the ECB's well-telegraphed policy stance limits the potential for significant directional moves unless the data substantially deviates from expectations.
EURUSD
Sentiment:
Neutral
Source: Finnhub
The US Dollar Index (DXY) faces a critical juncture as bullish technical patterns clash with deteriorating macroeconomic fundamentals. Price action shows the DXY testing the 106.50 resistance level, up 0.4% on the day, driven by short-covering and year-end positioning. However, underlying macro data paints a grimmer picture with US Manufacturing PMI remaining in contraction territory at 49.0 and consumer confidence sliding to six-month lows. Technical indicators suggest immediate resistance at 106.80, coinciding with the 50-day moving average, while support holds at 105.20. EUR/USD has retreated to 1.0480 (-0.35%) as dollar strength persists, while USD/CHF advances to 0.8850 (+0.28%). The divergence between price action and fundamentals creates uncertainty for traders, with many awaiting this week's ISM Services data and Friday's Non-Farm Payrolls for clearer directional cues.
EURUSD
USDCHF
DXY
Sentiment:
Neutral
Source: Marketaux
USD/JPY has pulled back to 155.65, declining 0.8% (125 pips) from last week's multi-month high of 156.90, raising questions about whether this represents a healthy correction or the beginning of a trend reversal. The retreat comes amid profit-taking activities and verbal intervention concerns from Japanese officials, with Finance Minister Suzuki warning against excessive yen weakness. Technical analysis reveals the pair has broken below the ascending trendline support at 155.80, with the next major support level at 154.50 (38.2% Fibonacci retracement). The Dollar Index has simultaneously weakened to 106.20 (-0.3%), adding pressure to USD/JPY. RSI indicators have cooled from overbought territory above 70 to a more neutral 58, suggesting room for further downside. Traders are closely monitoring the 155.00 psychological level, where significant buying interest emerged during previous corrections. A sustained break below could accelerate losses toward 153.50.
USDJPY
DXY
Sentiment:
Negative
Source: Marketaux
Historical seasonality data suggests the US Dollar typically weakens in December, with analysis of the past 20 years showing negative returns in 65% of December periods. EUR/USD historically gains an average of 0.8% during December, currently trading at 1.0485 with potential to test 1.0600 if seasonal patterns hold. GBP/USD shows even stronger December performance, averaging +1.2% gains, with current levels at 1.2650 targeting 1.2800. USD/JPY typically declines 0.6% in December, already showing signs of seasonal weakness at 155.65. AUD/USD demonstrates the strongest seasonal gains, averaging +1.5% in December, currently positioned at 0.6480 with upside potential to 0.6600. The seasonal weakness is attributed to year-end portfolio rebalancing, reduced liquidity, and profit-taking in dollar longs. However, traders should note that 2025's unique macro environment, including persistent inflation concerns and Federal Reserve policy uncertainty, could override traditional seasonal patterns.
EURUSD
GBPUSD
USDJPY
AUDUSD
Sentiment:
Negative
Source: Marketaux
NZD/USD reached a 4-week high of 0.5751 earlier today, marking its strongest level since October 30, before retreating to test crucial support between 0.5723-0.5731 during the US session. The pair's rally was initially supported by buyers defending this key swing area during Asian trading, which provided a solid foundation for the upward move. However, momentum has shifted as the pair rotated lower, bringing it back to this critical decision zone. The 0.5723-0.5731 range now acts as a pivotal technical level where traders must decide whether to defend the support or allow further downside. A successful hold above this area could reinforce bullish sentiment and potentially trigger another attempt at recent highs. Conversely, a break below would signal weakness and could accelerate losses toward 0.5700. Traders should closely monitor price action at these levels for directional cues in the coming sessions.
NZDUSD
Sentiment:
Neutral
Source: Finnhub
The US dollar is gaining momentum against major currencies, driven by a sharp rise in US Treasury yields. The 10-year yield has jumped 7.3 basis points, while the 2-year yield reached session highs at 3.534%, up 4.3 basis points. This yield surge reflects growing market expectations of sustained higher interest rates and potentially less aggressive Fed easing in 2025. The dollar index has responded positively to the yield movements, with USD pairs showing broad strength across the board. Technical indicators suggest continued upward pressure on the dollar as bond markets price in a more hawkish monetary policy outlook. The yield curve dynamics indicate investors are reassessing inflation risks and economic growth prospects. Traders should monitor key resistance levels on major USD pairs as the greenback tests recent highs amid this yield-driven rally.
EURUSD
GBPUSD
USDJPY
USDCHF
AUDUSD
USDCAD
NZDUSD
Sentiment:
Very Positive
Source: Finnhub
Global bond markets are experiencing sharp weakness to start December, with the selloff effectively erasing last week's Thanksgiving rally. Market participants point to concerns about potential Bank of Japan policy shifts as a key catalyst for the volatility. The rapid unwinding of positions highlights the fragility of recent market gains during the typically thin Thanksgiving trading period. US Treasury yields are climbing across the curve, pressuring risk assets and supporting the US dollar. The correlation between bond weakness and currency movements suggests a broader risk-off sentiment developing in markets. Technical analysis shows bonds breaking below key support levels established during November's rally. This morning's price action reflects heightened uncertainty about global monetary policy divergence, particularly between the Fed and BoJ. Forex traders should expect increased volatility in JPY crosses and safe-haven flows.
USDJPY
EURJPY
GBPJPY
Sentiment:
Negative
Source: Marketaux
Hawkish comments from Bank of Japan officials regarding potential interest rate increases have tempered the positive sentiment previously driven by Federal Reserve rate cut expectations. The diverging monetary policy outlook between the BoJ and Fed is creating significant volatility in currency markets, particularly affecting yen crosses. Market participants are reassessing positions as Japan signals readiness to normalize policy while the Fed maintains its easing bias. The contrast in central bank stances has led to sharp movements in USDJPY and other yen pairs. Risk sentiment has deteriorated as traders balance Fed dovishness against potential BoJ tightening. This policy divergence could mark a significant shift in global FX dynamics heading into 2025. Traders should monitor upcoming BoJ communications closely as any confirmation of rate hike timing could trigger substantial yen appreciation across the board.
USDJPY
EURJPY
GBPJPY
AUDJPY
CADJPY
Sentiment:
Negative
Source: Marketaux
Global risk assets including stocks and cryptocurrencies are sliding amid growing concerns about hawkish Bank of Japan policy shifts. Bitcoin's sharp decline is serving as a leading indicator of risk-off sentiment, with spillover effects visible across forex markets. The correlation between crypto weakness and traditional currency movements highlights interconnected market dynamics. Safe-haven currencies like the Japanese yen and Swiss franc are benefiting from the risk aversion, while commodity currencies face selling pressure. The rapid shift in market sentiment underscores how BoJ policy expectations can trigger broad-based deleveraging. Technical indicators suggest further downside potential if risk sentiment continues deteriorating. Forex traders should expect increased volatility in risk-sensitive pairs and potential continuation of safe-haven flows. The market's reaction demonstrates the significant impact of central bank policy divergence on cross-asset correlations.
USDJPY
EURJPY
GBPJPY
AUDUSD
NZDUSD
USDCHF
AUDJPY
Sentiment:
Very Negative
Source: Marketaux
USD/CAD is experiencing a bearish reversal as market participants increasingly price in a Bank of Canada rate pause at the upcoming policy meeting. The Canadian dollar has strengthened against the greenback, with the pair retreating from recent highs near 1.4100. Growing expectations that the BoC will hold rates steady after aggressive cuts this year are supporting CAD strength. Oil price stability above $68 per barrel provides additional support for the commodity-linked currency. Technical analysis reveals a clear bearish reversal pattern, with the pair breaking below the 50-day moving average at 1.3950. Immediate support lies at 1.3900, with further downside potential toward 1.3850 if bearish momentum continues. The diverging monetary policy outlook between the Fed and BoC could extend this move, particularly if Canadian economic data remains resilient ahead of the policy decision.
USDCAD
Sentiment:
Negative
Source: Marketaux
The US Dollar has experienced deepening weakness across major pairs as markets increasingly price in Federal Reserve rate cuts for early 2026. EUR/USD has benefited from the dollar's broad decline, while USD/JPY faces downward pressure as safe-haven demand supports the yen. Market participants are reassessing the Fed's monetary policy trajectory, with futures markets now indicating higher probability of easing by 2026. This shift in rate expectations has triggered significant dollar selling, pushing key currency pairs toward critical technical levels. Oil markets are also reacting, with both Brent and WTI futures showing volatility as dollar weakness typically supports commodity prices. Technical analysis reveals major support and resistance levels are being tested across multiple pairs, creating potential breakout opportunities. The evolving rate cut narrative could continue pressuring the dollar if upcoming economic data reinforces expectations for future Fed easing, making these technical levels crucial for near-term direction.
EURUSD
USDJPY
Sentiment:
Negative
Source: Marketaux
The US Dollar weakened significantly against major currencies over the past week as markets renewed expectations for Federal Reserve rate cuts. Growing speculation about potential monetary easing has pressured the greenback, with traders repositioning ahead of upcoming economic data releases. The shift in sentiment reflects concerns about US economic momentum and the Fed's ability to maintain its current hawkish stance. Major pairs including EUR/USD, GBP/USD, and others have capitalized on dollar weakness, posting gains as investors reduce long dollar positions. Market participants are closely monitoring Fed officials' comments and economic indicators for clues about the timing and magnitude of potential rate adjustments. Technical levels across major pairs suggest further dollar weakness possible if rate cut expectations solidify. The evolving monetary policy outlook remains the primary driver for forex markets, with any hawkish surprises potentially reversing recent dollar losses.
EURUSD
GBPUSD
Sentiment:
Negative
Source: Marketaux
The US Dollar Index hovers near 106.50 as forex markets brace for pivotal economic releases that could determine the Federal Reserve's hawkish stance. EUR/USD remains range-bound around 1.0560, showing minimal movement amid pre-data caution. USD/JPY continues consolidating near 149.80, with traders awaiting clearer directional cues from upcoming US economic indicators. This week's US ISM Manufacturing PMI and Friday's Non-Farm Payrolls report represent potentially the final opportunity for dollar bulls to justify expectations of sustained Fed hawkishness. Technical analysis shows the Dollar Index testing crucial support at 106.30, with resistance at 107.00. A break below support could trigger broader dollar weakness, potentially pushing EUR/USD toward 1.0650 and USD/JPY below 149.00. Market positioning remains cautiously bullish on the dollar, though conviction appears to be waning ahead of key data releases.
EURUSD
USDJPY
DXY
Sentiment:
Neutral
Source: Marketaux
EUR/JPY declined 0.2% to 157.85 as Spain's Manufacturing PMI disappointed, coming in at 51.5 versus 52.4 expected, down from 52.1 previously. While the reading remains above 50, indicating expansion, the slower pace of growth raised concerns about eurozone economic momentum. Spanish industrial output and new orders continued expanding at a solid pace, maintaining positive business sentiment. The data adds to mixed eurozone signals ahead of this week's ECB meeting, where policymakers face balancing growth concerns with persistent inflation. Technical indicators show EUR/JPY testing support at 157.70, with resistance at 158.20. The pair's direction will likely depend on broader eurozone PMI releases and ECB communication. Traders should monitor the 157.50 level as key support, where the 50-day moving average converges with horizontal support from November lows.
EURJPY
Sentiment:
Neutral
Source: Finnhub
EUR/USD trades in a tight range near 1.0560 during Monday's European session, maintaining its multi-week consolidation pattern as traders await Tuesday's crucial Eurozone inflation data. The pair shows limited movement, trading within a 20-pip range as markets position cautiously ahead of the November CPI release, expected to show inflation rising to 2.3% year-over-year from 2.0% previously. The European Central Bank's recent dovish pivot continues to cap euro gains, with markets pricing in 100 basis points of rate cuts through 2025. Technical indicators suggest continued consolidation, with immediate resistance at 1.0600 and solid support at 1.0500. The 50-day moving average at 1.0580 acts as a pivot point, with price action remaining constrained by declining trading volumes. A decisive break above 1.0600 could target 1.0670, while failure to hold 1.0500 support may accelerate declines toward 1.0450.
EURUSD
Sentiment:
Neutral
Source: Marketaux
Major cross pairs including AUD/USD, USD/CAD, NZD/USD, and AUD/CHF are positioned for increased volatility entering December, with commodity currencies showing particular vulnerability. AUD/USD trades near 0.6480, facing headwinds from China growth concerns and RBA policy uncertainty. NZD/USD hovers around 0.5920, pressured by RBNZ's dovish stance and soft domestic data. USD/CAD maintains strength at 1.4020, supported by oil price weakness and diverging monetary policies between the Fed and BoC. AUD/CHF shows relative stability at 0.5740, benefiting from SNB's negative rates versus RBA's hawkish tilt. Technical analysis reveals AUD/USD approaching critical support at 0.6450, while NZD/USD risks breaking below 0.5900. Traders should prepare for heightened volatility as year-end positioning, central bank meetings, and thin holiday liquidity converge to create potentially sharp moves in cross pairs.
AUDUSD
USDCAD
NZDUSD
AUDCHF
Sentiment:
Negative
Source: Marketaux
USD/JPY jumped 0.5% to 150.25 after Bank of Japan Governor Kazuo Ueda provided the clearest signal yet of a potential December rate hike. Ueda's hawkish comments surprised markets, suggesting the BOJ is seriously considering ending its ultra-loose monetary policy stance sooner than expected. The yen initially strengthened but quickly reversed as traders reassessed the implications for carry trades and yield differentials. Market pricing now shows a 65% probability of a 25 basis point hike at the December 19 meeting, up from 40% previously. Technical analysis shows USD/JPY breaking above the 150.00 psychological resistance, with next targets at 150.80 and 151.50. Support has formed at 149.50, coinciding with the 20-day moving average. The development marks a significant shift in BOJ communication and could trigger broader yen strength if confirmed by subsequent policy actions.
USDJPY
Sentiment:
Very Positive
Source: Marketaux
Major currency pairs remain locked in tight consolidation patterns as the US Dollar Index stabilizes near 106.50 following last week's volatility. EUR/USD continues trading within its 1.0500-1.0600 range, while GBP/USD tests resistance at 1.2650 amid ongoing UK economic concerns. USD/JPY holds steady near 149.50, with the Bank of Japan's policy uncertainty keeping yen traders cautious. USD/CHF demonstrates relative strength, maintaining levels above 0.8850 as safe-haven flows support the Swiss franc. Technical analysis reveals coiling price action across all majors, suggesting an imminent breakout as trading ranges compress. Key support and resistance levels remain intact: EUR/USD (1.0500/1.0600), GBP/USD (1.2580/1.2700), USD/JPY (149.00/150.50). This week's economic calendar, featuring US ISM data and European inflation figures, could provide the catalyst for directional moves after extended consolidation.
EURUSD
GBPUSD
USDJPY
USDCHF
DXY
Sentiment:
Neutral
Source: Marketaux
