EUR/USD and GBP/USD are gaining momentum as markets increasingly price in the possibility of a 50 basis point Federal Reserve rate cut in September. The dollar index has weakened 0.4% as traders reassess Fed policy expectations following softer inflation data and cooling labor market conditions. EUR/USD has pushed above 1.0950, testing key resistance at 1.1000, while GBP/USD approaches 1.2800. Gold prices have surged 1.2% to $2,425/oz, benefiting from the weaker dollar and lower real yield expectations. Fed fund futures now show a 35% probability of a 50bp cut, up from 20% last week. Technical indicators suggest further dollar weakness if EUR/USD breaks above 1.1000 decisively. The shift in rate cut expectations could accelerate dollar selling pressure, particularly if upcoming US economic data continues to disappoint.
EURUSD
GBPUSD
XAUUSD
Sentiment:
Very Positive
Source: Marketaux
NZD/USD has rallied 0.8% to approach the critical 0.6000 psychological level after bouncing strongly from support at 0.5920. The kiwi dollar's recovery follows a successful test of the 200-day moving average, which has acted as a solid floor for the pair. Technical momentum indicators, including RSI moving above 50 and MACD turning positive, suggest building bullish pressure. The bounce coincides with improved risk sentiment in Asian markets and a softer US dollar ahead of key US inflation data. Immediate resistance sits at 0.6000-0.6020, representing the confluence of psychological level and previous swing highs. A sustained break above this zone could open the path toward 0.6080. However, failure to clear resistance may see the pair retreat to test 0.5950 support. Traders are closely watching upcoming RBNZ commentary for additional directional cues.
NZDUSD
Sentiment:
Positive
Source: Marketaux
GBP/USD is trading under pressure ahead of the UK Q2 GDP release, expected to show a sharp deceleration to 0.1% q/q growth from Q1's stronger performance. The anticipated slowdown reflects the reversal of export frontloading that boosted Q1 figures ahead of Trump's reciprocal tariffs, combined with deteriorating manufacturing conditions. Sterling traders are bracing for disappointing data that would contrast sharply with the government's earlier optimism about Q1 results. The manufacturing sector's weakness and fading export surge suggest limited upside potential for the pound. Technical levels show GBP/USD testing support near 1.2750, with resistance at 1.2820. A weaker-than-expected GDP print could accelerate sterling's decline toward 1.2700, while any positive surprise might offer temporary relief. The data's implications for Bank of England policy remain crucial, as persistent economic weakness could delay further rate normalization.
GBPUSD
Sentiment:
Negative
Source: Finnhub
USD/JPY surged during Asian trading as Treasury Secretary nominee Bessent's policy comments created significant FX market volatility. The pair gained momentum despite broader dollar weakness against other majors, highlighting yen-specific selling pressure. Bessent's remarks suggested a more hawkish fiscal stance than markets anticipated, supporting dollar strength against safe-haven currencies. Major investment banks including Citigroup and Goldman Sachs have revised their USD/JPY forecasts higher, citing diverging monetary policies between the Fed and BoJ. The Dollar Index futures showed mixed signals, declining 0.2% while USD/JPY advanced, indicating selective dollar strength. Technical analysis shows the pair breaking above the 150.00 psychological level, with next resistance at 151.50. Traders should watch for any BoJ intervention signals as the pair approaches historically sensitive levels. Near-term momentum remains bullish pending further policy clarifications.
USDJPY
Sentiment:
Very Positive
Source: Marketaux
USD/JPY has fallen 0.6% to 146.40, marking three-week lows after US Treasury Secretary Scott Bessent publicly urged the Bank of Japan to raise interest rates. The yen strengthened across the board following Bessent's unusual intervention in Japanese monetary policy, which traders interpreted as potential US administration support for a stronger yen. The comments have reignited speculation about BOJ policy normalization, with markets now pricing in higher probability of rate hikes in coming meetings. Technical analysis shows USD/JPY breaking below key support at 147.00, with immediate targets at 146.00 and potentially 145.50. The Nikkei index has also reacted negatively to yen strength, declining as exporters face headwinds. Traders are monitoring whether Japanese officials will respond to Bessent's remarks and any shifts in BOJ communication regarding their ultra-loose monetary stance.
USDJPY
Sentiment:
Negative
Source: Marketaux
The Japanese yen has surged across all major pairs during Thursday's Asian session following US Treasury Secretary Bessent's call for BOJ rate hikes. USD/JPY led declines, dropping to 146.40, while cross-yen pairs also weakened significantly. The Nikkei 225 index fell sharply as yen appreciation pressured export-oriented stocks. Bessent's comments mark unusual US government intervention in Japanese monetary policy, suggesting Trump administration preference for a stronger yen to address trade imbalances. Asian FX markets showed mixed reactions, with risk-sensitive currencies underperforming amid the shift in sentiment. Technical indicators suggest further yen strength possible, with USD/JPY eyeing 145.00 support. The development raises questions about future US-Japan monetary policy coordination and potential BOJ response. Traders are repositioning for possible acceleration in BOJ policy normalization timeline.
USDJPY
EURJPY
GBPJPY
Sentiment:
Very Positive
Source: Marketaux
USD/JPY faces continued selling pressure after US Treasury Secretary Scott Bessent publicly criticized the Bank of Japan's monetary policy stance, explicitly calling for immediate rate hikes. The unprecedented intervention by a US Treasury Secretary in Japanese monetary affairs has triggered sharp yen appreciation, with USD/JPY testing multi-week lows. Markets interpret Bessent's comments as reflecting Trump administration's desire for a stronger yen to address bilateral trade issues. The remarks have increased speculation about accelerated BOJ policy normalization, potentially ending Japan's negative interest rate policy sooner than anticipated. Technical analysis shows USD/JPY breaking below crucial support levels, with momentum indicators signaling further downside potential toward 145.00. The development marks a significant shift in US-Japan monetary dynamics, with traders now closely monitoring BOJ officials' response and any policy guidance adjustments.
USDJPY
Sentiment:
Very Negative
Source: Marketaux
GBP/USD has climbed 0.5% to 1.2850 as diverging central bank expectations drive sterling strength against the dollar. Markets are pricing in a hawkish Bank of England stance with inflation remaining elevated at 4.2%, well above the 2% target, while weak US economic data has increased Federal Reserve rate cut probabilities to 75% for September. The pound found strong support at 1.2800 (50-day moving average) before breaking through resistance at 1.2830. Technical indicators show bullish momentum with RSI at 65, suggesting further upside potential toward 1.2900. The divergence in monetary policy outlook between the UK and US is expected to continue supporting GBP/USD in the near term. Traders should watch Wednesday's UK CPI data and Thursday's US retail sales for potential catalysts that could either reinforce or challenge the current bullish trend.
GBPUSD
Sentiment:
Very Positive
Source: Marketaux
The US Dollar has weakened broadly across major pairs as markets price in imminent Federal Reserve rate cuts amid mounting political pressure on the central bank's independence. The dollar index has declined 0.5% in early trading, with EUR/USD climbing to 1.1050 and GBP/USD advancing to 1.2950. Market participants are increasingly concerned about the Fed's ability to maintain policy independence, with futures markets now pricing in a 75% probability of a rate cut at the next FOMC meeting. The weakness in USD has provided a boost to commodity currencies, with AUD/USD rising 0.6% and NZD/USD gaining 0.4%. Gold prices have surged to $2,450/oz as investors seek safe-haven assets. Geopolitical tensions surrounding the upcoming US-Russia peace summit are adding to market uncertainty, potentially accelerating the dollar's decline if diplomatic efforts fail.
EURUSD
GBPUSD
AUDUSD
NZDUSD
DXY
Sentiment:
Negative
Source: Marketaux
European markets closed higher as EUR/USD gained 0.4% to 1.0920, driven by optimism surrounding Friday's Trump-Putin meeting in Alaska and expectations of reduced tariff impacts. President Trump's diplomatic outreach to European leaders and Ukraine's Zelenskiy ahead of the summit has boosted risk appetite, weakening the safe-haven dollar. The euro strengthened against major peers as investors anticipate potential de-escalation in geopolitical tensions and more favorable trade conditions. Market participants are positioning for a possible breakthrough in peace negotiations, which could further support European assets and the common currency. Technical indicators show EUR/USD breaking above the 1.0900 resistance level, with next target at 1.0950. The positive sentiment in European equities, particularly in export-heavy sectors, reinforces the euro's strength as traders price in reduced trade friction and improved economic prospects for the eurozone.
EURUSD
Sentiment:
Very Positive
Source: Finnhub
The dollar index dropped 0.8% to 103.20 as markets dramatically repriced Federal Reserve rate cut expectations following softer-than-expected US inflation data. Market-implied probability for a September rate cut jumped to 95%, with fed funds futures now pricing in 75 basis points of cuts by year-end. The shift in monetary policy expectations triggered broad USD selling, with EUR/USD rising to 1.0975 and GBP/USD advancing to 1.2850. Asian currencies also benefited, with USD/JPY falling below 150.00 for the first time in three weeks. Treasury yields tumbled, with the 2-year note dropping 15 basis points to 4.35%, further pressuring the greenback. Technical analysis shows the dollar index breaking below its 50-day moving average at 103.50, opening the path toward 102.80 support. Traders are now closely watching upcoming Fed speeches for confirmation of the dovish pivot.
EURUSD
GBPUSD
USDJPY
Sentiment:
Very Negative
Source: Marketaux
AUD/USD climbed 1.2% to 0.6580, reaching a two-week high as softer US inflation data undermined dollar strength and boosted commodity currencies. US CPI rose 2.9% year-over-year in July, below the 3.0% forecast, while core CPI decelerated to 3.2% from 3.3%. The Australian dollar outperformed majors as risk sentiment improved, with iron ore prices also supporting at $105 per tonne. RBA's hawkish stance contrasts sharply with the Fed's expected easing cycle, creating a favorable interest rate differential for the Aussie. Technical momentum turned bullish with RSI breaking above 60, while the pair cleared resistance at 0.6550. Next targets lie at 0.6620 (July high) and 0.6650 (200-day MA). Support has formed at 0.6530, with stronger backing at 0.6500 psychological level. Traders anticipate continued AUD strength if Chinese economic data improves and commodity prices remain elevated.
AUDUSD
Sentiment:
Very Positive
Source: Marketaux
GBP/USD advanced 0.9% to 1.2865 following weaker-than-expected US inflation data that virtually guaranteed a Federal Reserve rate cut in September. US CPI decelerated to 2.9% annually while core inflation eased to 3.2%, both missing estimates and pushing market-implied probability of a September cut to 98%. Sterling found additional support from relatively hawkish Bank of England positioning, with UK rates expected to remain higher for longer compared to US rates. The pair broke through key resistance at 1.2850, opening the path toward 1.2920 (August high). Technical indicators turned bullish with MACD crossing above signal line and RSI entering overbought territory at 68. Immediate support sits at 1.2820, coinciding with the broken resistance level. The widening UK-US rate differential could propel cable toward 1.3000 if US data continues disappointing and the BoE maintains its cautious stance on rate cuts.
GBPUSD
Sentiment:
Very Positive
Source: Marketaux
Currency markets are experiencing subdued volatility today with major pairs trading in tight ranges following yesterday's US CPI-driven moves. The dollar index remains defensive near 102.50 after losing 0.4% yesterday when traders fully priced in a 25 basis point Fed rate cut for September. Today's economic calendar is notably light, featuring only Spain's final CPI revision and US MBA Mortgage Applications data, neither expected to impact market positioning. The main focus shifts to Fed Governor Goolsbee's speech at 17:00 GMT/13:00 ET. As a voting FOMC member with neutral-to-dovish leanings, his comments on inflation trajectory and monetary policy could provide fresh directional cues. Technical analysis shows EUR/USD consolidating above 1.0950, while USD/JPY holds support at 147.50. Traders should watch for any hints about the Fed's comfort with current market pricing for September's meeting.
EURUSD
USDJPY
Sentiment:
Neutral
Source: Finnhub
The forex market shows minimal movement today after yesterday's significant dollar selloff triggered by US CPI data. Major currency pairs are consolidating with changes under 0.1%, as traders digest the implications of a fully priced 25 basis point Fed rate cut for September. The dollar index hovers near 102.40, maintaining yesterday's losses of approximately 0.5%. The standout mover is cryptocurrency, with Ethereum surging above $4,600 to reach four-year highs, representing a 12% gain in the past 24 hours. This crypto rally reflects risk-on sentiment following the softer inflation print. EUR/USD trades sideways near 1.0960, while GBP/USD maintains gains around 1.2780. Asian currencies show mixed performance, with USD/JPY edging higher toward 148.00. Near-term dollar direction depends on upcoming Fed communications and whether officials validate market expectations for September easing.
EURUSD
GBPUSD
USDJPY
Sentiment:
Negative
Source: Finnhub
USD/JPY has climbed back above the 148.00 psychological level during Asian trading, gaining 0.3% (45 pips) from overnight lows of 147.55. The yen's weakness follows Japan's softer-than-expected wholesale inflation data released earlier, which showed producer prices rising at a slower pace, reducing pressure on the Bank of Japan for immediate policy tightening. The pair's recovery also reflects a modest dollar bounce after yesterday's post-CPI selloff. Technical indicators suggest the 148.00 level now acts as immediate support, with resistance emerging at 148.50 (50-day moving average). Asian equity markets show mixed performance, with the Nikkei up 0.2% while Chinese indices remain flat. Traders are monitoring cross-yen pairs, with EUR/JPY testing 162.30 and GBP/JPY approaching 189.00. Further yen direction depends on upcoming BoJ communications and global risk sentiment shifts.
USDJPY
EURJPY
GBPJPY
Sentiment:
Positive
Source: Marketaux
USD/JPY has pushed above the key 148.00 level, currently trading at 148.15, representing a 0.35% gain in the Asian session. The move higher follows Japan's wholesale inflation data that came in below expectations, suggesting less pressure on the Bank of Japan to accelerate policy normalization. The softer PPI reading contrasts with recent speculation about potential BoJ rate hikes, providing relief for yen bears. Dollar strength is returning after yesterday's CPI-induced selloff, with the greenback finding support across Asian currencies. Technical analysis shows the pair breaking above the 148.00 resistance that had capped gains since Monday. The next resistance target sits at 148.75 (weekly high), while support has formed at 147.50. Traders should monitor upcoming Japanese economic data and any BoJ official comments that could impact the yen's trajectory in coming sessions.
USDJPY
Sentiment:
Positive
Source: Marketaux
USD/CNY remains stable near 7.2350 following news that US and Chinese trade officials will meet within three months to discuss economic relations. Treasury Secretary Bessent confirmed the 90-day tariff truce extension, preventing immediate duty escalations between the world's two largest economies. The agreement temporarily removes a major risk factor for emerging market currencies and global trade flows. Bessent revealed that President Xi has invited Trump for a meeting, though no date is set and acceptance remains pending. Crucially, existing tariffs will remain until China demonstrates progress on fentanyl control, maintaining some pressure on the yuan. The offshore yuan (CNH) shows limited reaction, trading flat at 7.2380. Asian currencies broadly benefit from reduced trade war risks, with USD/KRW down 0.2% and USD/SGD slipping 0.1%. Markets await concrete policy details from the upcoming trade discussions.
USDCNY
USDKRW
USDSGD
Sentiment:
Neutral
Source: Finnhub
USD/JPY consolidated near 150.20 during Asian hours as traders positioned ahead of Japan's Producer Price Index release, expected to show 2.8% year-over-year growth. The yen found modest support from expectations that rising wholesale inflation could prompt more hawkish Bank of Japan rhetoric, potentially accelerating their gradual policy normalization. However, broad dollar weakness following soft US CPI data continues to weigh on the pair, which has declined 1.5% from last week's high of 152.40. Technical analysis shows USD/JPY testing the 150.00 psychological level, with a break below targeting 149.50 (61.8% Fibonacci retracement). Resistance stands at 150.80 (previous support turned resistance). Market participants remain cautious as any PPI surprise could trigger volatility, particularly if the data strengthens the case for BoJ action. Australian and New Zealand data releases are expected to have minimal impact on major pairs during the session.
USDJPY
Sentiment:
Negative
Source: Finnhub
AUD/USD has recovered strongly from its post-RBA decision low, climbing 0.8% to test last week's highs near 0.6520. The pair initially dropped below its 200-hour moving average at 0.6487 following the Reserve Bank of Australia's 25 basis point rate cut, but buyers quickly stepped in to reverse the decline. Volatility surrounding the US CPI report propelled the pair to the 100-hour moving average at 0.6514, where sellers initially defended the level before retreating to 0.6490. However, this pullback proved short-lived as renewed buying pressure emerged. The RBA's dovish stance signals potential for further easing as Australian inflation and growth continue to slow. Technical indicators suggest bullish momentum is building, with immediate resistance at 0.6520 and strong support established at the 200-hour MA. A sustained break above weekly highs could open the path toward 0.6600.
AUDUSD
Sentiment:
Positive
Source: Finnhub
