GBP/USD continues to face selling pressure, trading below the crucial 1.3340 level following four consecutive days of losses. The pair has shed approximately 120 pips from recent highs as dollar strength persists ahead of upcoming US CPI data. Sterling weakness reflects growing concerns about UK economic momentum and diverging monetary policy expectations between the Bank of England and Federal Reserve. Technical analysis reveals immediate resistance at 1.3340, which now acts as a key pivot point, while support emerges near 1.3280 (50-day moving average). The upcoming US inflation report could prove decisive for near-term direction, with higher-than-expected CPI potentially pushing the pair toward 1.3200 psychological support. Traders are also monitoring UK economic indicators for signs of resilience that could limit sterling's downside. A break above 1.3340 would need to clear 1.3380 to signal potential trend reversal.
GBPUSD
Sentiment:
Negative
Source: Marketaux
EUR/USD gained 0.25% to 1.0875 following stronger-than-expected Eurozone PMI data that reinforced the ECB's decision to maintain current policy rates. October's flash Services PMI jumped to 52.6 from 51.3, significantly exceeding the 51.1 forecast, while Manufacturing PMI held steady at 50.0 versus 49.8 expected. The Composite PMI climbed to 52.2, well above the anticipated 51.0, driven primarily by German economic outperformance. The robust services sector expansion and resilient employment conditions support the ECB's pause stance, though moderating inflation pressures remain insufficient to trigger policy easing. Technical indicators show EUR/USD testing resistance at 1.0900, with momentum building on the PMI beat. Support lies at 1.0830 (previous session low). Traders should monitor upcoming ECB communications for any shifts in policy guidance, as sustained economic resilience could delay future rate cuts and provide additional euro support.
EURUSD
Sentiment:
Positive
Source: Finnhub
Gold prices declined 0.8% to $2,725 per ounce as the US dollar gained strength ahead of crucial CPI inflation data. The DXY index rose 0.3% to 106.20, pressuring the precious metal lower despite escalating geopolitical tensions in Eastern Europe and the Middle East. Markets are pricing in a 25 basis point Fed rate cut for December with 65% probability, though stronger-than-expected CPI data could reduce these expectations. Technical analysis shows immediate support at $2,710, with the 50-day moving average at $2,695 providing stronger backing. Resistance stands at $2,750, last week's high. Bitcoin's surge above $75,000 is also diverting some safe-haven flows from gold. Traders should monitor the CPI release closely, as a reading above the 2.3% forecast could trigger further gold selling while geopolitical developments may provide underlying support.
XAUUSD
DXY
EURUSD
BTCUSD
Sentiment:
Negative
Source: Marketaux
The US dollar index consolidated near 106.15 as forex markets adopted a wait-and-see approach before today's CPI inflation report. Analysts expect the data to show core CPI at 3.3% year-over-year, unchanged from September, potentially making it a non-event for currency traders. EUR/USD trades sideways at 1.0535, while USD/CAD holds firm at 1.3950. The Federal Reserve has already telegraphed a gradual easing cycle, with markets fully pricing in 50 basis points of cuts by March 2025. Technical indicators suggest the dollar is in a neutral range, with DXY support at 105.80 and resistance at 106.50. The lack of major economic surprises recently has led to decreased volatility across major pairs. Traders should prepare for potential range-bound trading unless CPI delivers a significant surprise above 3.5% or below 3.1%.
EURUSD
USDCAD
DXY
Sentiment:
Neutral
Source: Marketaux
EUR/USD remains trapped in a tight consolidation pattern around 1.0540, with technical indicators suggesting potential downside momentum building. The pair has failed to break above the 1.0580 resistance level for three consecutive sessions, while the DXY maintains strength above 106.00. European economic data continues to disappoint, with German industrial production falling 2.5% month-over-month, worse than the -1.0% forecast. The ECB's dovish stance contrasts with the Fed's measured approach to rate cuts, creating a fundamental headwind for the euro. Technical analysis reveals a descending triangle pattern forming on the 4-hour chart, targeting 1.0480 if support at 1.0520 breaks. The 200-day moving average at 1.0615 caps upside potential. Traders should watch for a decisive break below 1.0520, which could accelerate losses toward the yearly low at 1.0450.
EURUSD
DXY
Sentiment:
Negative
Source: Marketaux
Global forex markets are experiencing unusually low volatility as traders await the US CPI release, with major pairs confined to narrow ranges. EUR/USD hovers near 1.0540, USD/JPY consolidates around 152.80, while the S&P 500 futures edge 0.2% higher. The data blackout period has left markets directionless, with Fed rate cuts for December already 70% priced in at 25 basis points. The DXY trades sideways at 106.10, reflecting the market's neutral stance. Implied volatility measures have dropped to three-month lows across major currency pairs, suggesting traders expect limited market movement even after the CPI release. Technical patterns show most pairs trading within established ranges, with EUR/USD between 1.0520-1.0580 and USD/JPY bounded by 152.00-153.50. The calm before potential storm conditions warrant caution, as any CPI surprise could trigger outsized moves.
EURUSD
USDJPY
DXY
Sentiment:
Negative
Source: Marketaux
USD/CAD has staged a strong rebound, climbing 0.5% to 1.3970 as the Canadian dollar weakened on declining oil prices and dovish Bank of Canada expectations. WTI crude fell 2.1% to $71.20 per barrel, pressuring the commodity-linked loonie. Technical momentum has turned bullish after the pair bounced from support at 1.3910, with the RSI rising above 50 and MACD showing a bullish crossover. The next resistance target sits at 1.4080, the October high, with intermediate resistance at 1.4020. Canadian inflation data due next week could provide further directional catalyst, with expectations for a continued cooling to 1.9% year-over-year. The BoC has already cut rates by 75 basis points this cycle and markets price in another 25bp reduction in December. A sustained break above 1.4080 would open the path toward 1.4150, the year-to-date high.
USDCAD
Sentiment:
Positive
Source: Marketaux
USD/JPY declined 1.1% to 149.80 while USD/CHF fell 0.9% to 0.8650 as the US dollar weakened following disappointing inflation data. The softer CPI reading has triggered a significant repricing in interest rate expectations, with the yield curve steepening as traders position for potential Fed easing. The Dollar Index futures dropped to 104.50, testing critical support levels. Safe-haven currencies JPY and CHF are benefiting from both dollar weakness and increased market uncertainty. Technical analysis shows USD/JPY breaking below the 150.00 psychological level and approaching the 200-day moving average at 149.20. USD/CHF has violated its ascending trendline support, with next major support at 0.8600. Market positioning data suggests leveraged funds are increasingly bearish on the dollar, potentially accelerating the downward momentum if key support levels fail to hold.
USDJPY
USDCHF
Sentiment:
Very Negative
Source: Marketaux
Major USD currency pairs experienced heightened volatility as US equity indices reversed earlier gains, with the S&P 500 falling 1.2% and Nasdaq dropping 1.5%. EUR/USD consolidated around 1.0920 after reaching intraday highs of 1.0950, while GBP/USD pulled back to 1.2200 from 1.2240. USD/JPY found support at 149.50 as risk-off flows benefited the yen. The Russell 2000's 2.1% decline highlighted concerns about small-cap vulnerability in a slowing growth environment. Fresh long positions established after the CPI release are being unwound as traders reassess the sustainability of the dollar's weakness. Technical indicators suggest short-term oversold conditions in the dollar, potentially setting up a relief bounce. However, the broader trend remains bearish for USD pairs unless upcoming economic data significantly beats expectations. Traders should watch for any stabilization in equity markets as a potential catalyst for USD recovery.
EURUSD
GBPUSD
USDJPY
Sentiment:
Negative
Source: Marketaux
USD/JPY traded cautiously around 151.80 following Japanese Prime Minister Takaichi's commitment to responsible fiscal policy, marking a shift from her previously hawkish stance. The PM emphasized an 'economy first, then fiscal policy' approach, pledging to reduce Japan's debt-to-GDP ratio while maintaining market confidence. Her announcement includes plans to compile economic measures and submit a supplementary budget to parliament. This more moderate fiscal stance could ease pressure on the Bank of Japan to normalize policy aggressively, potentially limiting yen strength. Market participants note Takaichi's rhetoric appears more restrained now that she holds office, suggesting a pragmatic approach to balancing growth and fiscal sustainability. Technical resistance for USD/JPY remains at 152.20, with support established at 151.40. Traders await concrete policy details to gauge the actual impact on the yen's trajectory.
USDJPY
Sentiment:
Neutral
Source: Finnhub
GBP/USD is trading sideways around 1.2160, caught between opposing forces as hawkish Fed rhetoric supports the dollar while growing Bank of England rate cut expectations weigh on sterling. The Dollar Index has recovered to 105.20 from earlier lows, aided by Fed officials pushing back against aggressive easing expectations. UK 2-year gilt yields fell 8 basis points to 4.15% as markets price in a 70% chance of a BoE rate cut by February, up from 55% last week. US 2-year Treasury yields remain elevated at 4.35%, maintaining the interest rate differential in favor of the dollar. Technical analysis shows GBP/USD trapped in a narrow 1.2140-1.2180 range, with a break below potentially targeting 1.2100 support. The pair awaits fresh catalysts from upcoming UK inflation data and Fed meeting minutes, with downside risks mounting as BoE dovishness increasingly outweighs Fed easing expectations.
GBPUSD
Sentiment:
Neutral
Source: Marketaux
USD/CHF has declined 0.25% to trade at 0.7966, breaking back below the critical 200-hour moving average at 0.79659 after failing to sustain earlier gains. The pair reached a session high of 0.7986, precisely testing the lower boundary of key swing-area resistance between 0.7986-0.7994, before sellers emerged to push prices lower. This marks the second consecutive day that bulls have failed to overcome the 200-hour MA resistance, highlighting its significance as a technical barrier. The rejection at this level suggests growing selling pressure and potential for further downside momentum. Immediate support lies at 0.7950, followed by the 0.7930 zone. Traders should watch for any sustained break below current levels, which could accelerate the decline toward 0.7900. The inability to clear the 200-hour MA resistance indicates bearish sentiment is strengthening, with sellers defending key technical levels effectively.
USDCHF
Sentiment:
Negative
Source: Finnhub
US equity futures remain unchanged in early trading as crude oil prices surge 2.8% to $72.50/barrel, creating mixed signals for USD pairs. The oil spike follows renewed geopolitical tensions in the Middle East, raising concerns about supply disruptions and potential inflationary pressures. The dollar index (DXY) holds steady at 103.20, showing resilience despite energy market volatility. Major forex pairs are consolidating, with EUR/USD trading in a tight range around 1.0825 and USD/JPY hovering near 149.75. Traders are cautious ahead of upcoming US economic data releases, particularly Thursday's GDP figures and Friday's PCE inflation data. The oil surge could strengthen commodity currencies like CAD and NOK while potentially weighing on oil-importing nations' currencies. Technical indicators suggest a wait-and-see approach, with most pairs trading within established ranges until clearer directional catalysts emerge.
EURUSD
USDJPY
USDCAD
Sentiment:
Very Positive
Source: Marketaux
GBP/USD is challenging critical resistance at 1.2980, rising 0.2% (26 pips) as traders position for a potential breakout above the multi-week consolidation range. The pair has been building momentum following better-than-expected UK retail sales data showing a 0.3% monthly increase versus -0.2% forecast. Sterling strength is supported by Bank of England officials maintaining a hawkish stance on inflation, with Governor Bailey suggesting rates may need to remain elevated longer than previously anticipated. Technical analysis shows the pair forming an ascending triangle pattern, with immediate resistance at 1.2980-1.3000 zone. A decisive break above 1.3000 could trigger acceleration toward 1.3050 and potentially 1.3100. Support remains firm at 1.2940 (50-day moving average). RSI indicators are approaching overbought territory at 68, suggesting some consolidation may occur before any sustained breakout attempt.
GBPUSD
Sentiment:
Positive
Source: Marketaux
The US dollar strengthened 0.4% against major currencies as escalating US-China trade tensions dampened risk appetite across global markets. New US tariff threats on $300 billion of Chinese imports sent safe-haven flows into USD and JPY, with USD/JPY declining 0.3% to 149.45. Simultaneously, fresh US sanctions on Russian oil giants Rosneft and Lukoil triggered a 3.2% surge in WTI crude to $73.80/barrel, the highest level in six weeks. EUR/USD fell 0.35% to 1.0790 as European currencies weakened on growth concerns linked to China exposure. AUD/USD dropped sharply by 0.8% to 0.6520, reflecting Australia's vulnerability to Chinese economic slowdown. The combination of trade uncertainties and energy price spikes creates a challenging environment for risk assets. Traders are monitoring whether oil's surge will translate into broader inflationary pressures, potentially influencing central bank policies globally.
EURUSD
USDJPY
AUDUSD
Sentiment:
Negative
Source: Marketaux
EUR/USD is approaching key resistance at 1.0850, gaining 0.25% (27 pips) as improving European equity sentiment supports the single currency. The FTSE 100 index rose 0.8% to 8,215, leading European markets higher on strong corporate earnings and easing energy concerns. The euro's advance comes despite the dollar index holding above 103.00, suggesting specific EUR strength rather than broad USD weakness. Technical analysis reveals EUR/USD forming a bullish flag pattern on the 4-hour chart, with momentum indicators favoring upside continuation. A break above 1.0850 could target 1.0880 (October high) and potentially 1.0920. Support is established at 1.0810 (daily pivot) and 1.0780 (200-hour moving average). WTI crude's stabilization around $72.00/barrel after earlier spikes has reduced immediate inflation concerns, allowing risk assets to recover. Traders await Thursday's ECB meeting minutes for additional directional cues.
EURUSD
Sentiment:
Positive
Source: Marketaux
AUD/USD continues to trade within a well-defined range, providing traders with clear tactical opportunities for range-based strategies. The pair has been oscillating between key support at 0.6650 and resistance at 0.6750, reflecting balanced market forces amid mixed global economic signals. Technical indicators suggest the range remains intact, with RSI hovering near neutral territory at 48. The Australian dollar's performance against major crosses including EUR/AUD and GBP/AUD indicates relative stability, while the US Dollar Index shows consolidation around 103.50. Traders are monitoring upcoming Australian inflation data and Federal Reserve commentary for potential range breakout catalysts. The current setup favors range trading strategies with tight stops beyond established boundaries. A decisive break above 0.6750 could target 0.6800, while failure below 0.6650 might expose 0.6600 psychological support.
AUDUSD
EURAUD
GBPAUD
Sentiment:
Neutral
Source: Marketaux
Crude oil inventory data set for release at 14:30 GMT could influence USD pairs as energy prices affect inflation expectations and Fed policy outlook. Market expects crude oil inventories to rise by 1.205 million barrels, contrasting with yesterday's private API data showing a 3.0 million barrel drawdown. Distillates expected to decline by 1.933 million barrels while gasoline inventories forecast to drop 0.809 million. The divergence between API and consensus forecasts creates uncertainty in oil markets. Higher crude inventories typically pressure oil prices lower, potentially easing inflation concerns and reducing pressure on the Fed to maintain restrictive policy. This could weaken USD against major currencies. Conversely, if actual data aligns with API's larger drawdown, oil prices may spike, supporting USD through inflation expectations. Key USD pairs to watch include EURUSD near 1.0850 resistance and USDJPY testing 150.00 psychological level.
EURUSD
USDJPY
Sentiment:
Negative
Source: Finnhub
GBPUSD faced selling pressure following disappointing UK economic data, though specific figures weren't detailed in the source material. The pair's weakness reflects growing concerns about UK economic momentum ahead of Friday's crucial UK CPI release, which will provide insights into Bank of England's rate trajectory. Market participants are also positioning ahead of next week's Federal Open Market Committee meeting, where the Fed is expected to maintain its hawkish stance given persistent US inflation. The dual event risk creates a challenging environment for sterling bulls. Technical analysis suggests GBPUSD testing support levels, with traders awaiting CPI data for directional clarity. A softer-than-expected UK inflation reading could accelerate GBPUSD losses, potentially pushing the pair toward 1.2600 support. Conversely, hot CPI data might provide temporary relief, though Fed policy expectations continue to favor USD strength medium-term.
GBPUSD
Sentiment:
Negative
Source: Marketaux
UK inflation data came in cooler than forecast, fueling expectations for a December Bank of England rate cut and lifting the FTSE 100 index. The softer CPI reading suggests easing price pressures in the UK economy, giving the BoE more flexibility to support growth through monetary easing. This development weakened GBP across major pairs as rate cut expectations increased. GBPUSD likely extended losses on the data, while GBPJPY faced additional pressure given yen's safe-haven appeal. The cooler inflation also supported UK equities, as lower rates typically boost stock valuations. Gold prices mentioned in the analysis suggest broader market risk dynamics, with precious metals potentially benefiting from dovish central bank expectations. For forex traders, the shift in BoE rate expectations creates a bearish GBP environment, particularly against currencies with more hawkish central bank outlooks like USD.
GBPUSD
GBPJPY
USDJPY
Sentiment:
Negative
Source: Marketaux
