GBP/USD has jumped significantly to reclaim the 1.3400 handle following the Bank of England's latest monetary policy decision, defying expectations with its resilient performance despite the rate cut. The pound's strength suggests markets had already priced in the BOE's dovish move, with traders focusing instead on the central bank's forward guidance and economic projections. The pair's ability to maintain gains above this key psychological level indicates underlying sterling support, potentially driven by relative dollar weakness and improved UK economic sentiment. Technical analysis shows immediate resistance at 1.3450, while the reclaimed 1.3400 level now acts as crucial near-term support. The unexpected pound strength following a typically bearish catalyst demonstrates complex market dynamics, with traders weighing the BOE's policy stance against broader dollar weakness and UK economic resilience. Short-term outlook remains constructive above 1.3400, though sustained moves higher will require continued fundamental support.
GBPUSD
Sentiment:
Positive
Source: Marketaux
USD/JPY experienced significant intraday volatility, swinging from 147.05 to 147.70 before stabilizing around 147.40 as confusion emerged over US-Japan tariff negotiations. Japanese Prime Minister Ishiba is requesting amendments to US executive orders, asserting that both nations agreed the 15% tariff rate should serve as a ceiling rather than an additional levy on existing duties. The yen's sharp weakening earlier reflected market uncertainty about whether new tariffs would stack on current ones, potentially damaging Japan's export competitiveness. This diplomatic friction adds complexity to USD/JPY positioning, with traders monitoring both monetary policy divergence and trade relations. Technical levels show immediate resistance at 147.70 (session high) and support at 147.05 (pre-confusion level). Resolution of the tariff interpretation could provide directional clarity, with yen strength likely if Japan secures favorable amendments, while continued uncertainty may keep the pair range-bound near current levels.
USDJPY
Sentiment:
Neutral
Source: Finnhub
EUR/USD advanced 0.4% to 1.0925 as geopolitical tensions eased on reports of potential Ukraine ceasefire negotiations. The euro strengthened across the board, with EUR/GBP gaining 0.2% to 0.8465, as risk sentiment improved markedly. Safe-haven flows reversed, pressuring USD/CHF down 0.5% to 0.8875 as Swiss franc demand waned. GBP/USD also benefited from dollar weakness, climbing 0.3% to 1.2680. The shift in market dynamics reflects reduced geopolitical risk premium, encouraging traders to unwind defensive positions. European currencies are outperforming as regional stability prospects improve. Technical analysis shows EUR/USD breaking above the 1.0900 resistance, targeting 1.0950 next. Support levels for the pair sit at 1.0880. Sustained de-escalation could further support risk-on positioning, potentially pressuring the dollar and yen while boosting commodity currencies.
EURUSD
GBPUSD
USDCHF
EURGBP
Sentiment:
Positive
Source: Marketaux
USD/CHF dropped 0.5% to 0.8675 while EUR/USD surged 0.6% to 1.0920 as disappointing US economic data prompted traders to reassess Federal Reserve policy expectations. Recent US manufacturing data came in weaker than anticipated, with ISM PMI falling to 47.8, indicating continued contraction. Additionally, dovish signals from Fed officials suggested a potential pause in the tightening cycle, weighing heavily on dollar sentiment. The US Dollar Index declined 0.7% to 103.20, marking its sharpest daily drop in three weeks. Technical indicators show USD/CHF breaking below the 0.8700 support level, with next target at 0.8650, while EUR/USD cleared resistance at 1.0900 and could test 1.0950. Traders are now positioning for potentially softer Fed rhetoric at upcoming meetings, which could further pressure the greenback against major counterparts.
USDCHF
EURUSD
Sentiment:
Negative
Source: Marketaux
GBP/USD declined 0.4% to 1.2650 ahead of Thursday's crucial Bank of England monetary policy meeting, with markets pricing in a 65% probability of a 25 basis point rate hike. Sterling weakness reflects growing concerns about the UK's economic outlook, as recent GDP data showed quarterly growth of just 0.1%, below the 0.3% forecast. Inflation remains stubbornly high at 7.8%, forcing the BoE to balance growth concerns against price stability mandates. Technical analysis reveals GBP/USD testing support at the 50-day moving average (1.2645), with a break below potentially accelerating losses toward 1.2600. Resistance sits at 1.2700, which has capped rallies for the past week. Market positioning suggests cautious sentiment, with traders reducing long sterling positions ahead of the BoE announcement, anticipating potential dovish surprises despite inflation pressures.
GBPUSD
Sentiment:
Negative
Source: Marketaux
USD/CHF has jumped 1.2% (120 pips) to 0.9180 as Switzerland faces severe trade headwinds following the failure of its delegation to secure a meeting with Trump administration officials. The Swiss Federal Council convened an extraordinary session after their trade team returned empty-handed, with Trump's 39% reciprocal tariffs now taking effect on Swiss exports. This dramatic development has pressured the Swiss franc as markets price in significant economic disruption to Switzerland's export-dependent economy. The tariff impact could force the Swiss National Bank to adopt a more dovish stance to support growth, further weakening CHF. Technical indicators show USD/CHF breaking above the 0.9150 resistance level with momentum indicators turning bullish. The next resistance sits at 0.9220, while support has formed at 0.9100. Traders should monitor any Swiss government response measures and potential SNB intervention as volatility remains elevated.
USDCHF
Sentiment:
Very Negative
Source: Finnhub
Asian currencies faced selling pressure during Thursday's session as renewed tariff discussions sparked risk-off sentiment across regional markets. AUD/USD fell 0.3% to 0.6480, while NZD/USD dropped 0.4% to 0.5920, as traders worried about potential trade disruptions impacting export-dependent economies. USD/JPY remained relatively stable at 149.50, with safe-haven yen flows offsetting dollar strength. Chinese yuan weakened modestly against the greenback, with USD/CNH rising to 7.2850 amid concerns about escalating trade tensions. Regional equity markets declined 0.8% on average, further pressuring risk-sensitive currencies. Technical levels show AUD/USD approaching critical support at 0.6470, while resistance remains firm at 0.6520. Market participants await Friday's Asian manufacturing PMI releases, which could provide clarity on regional economic resilience amid growing trade uncertainties.
AUDUSD
NZDUSD
USDJPY
USDCNH
Sentiment:
Negative
Source: Marketaux
USD/SAR has gained momentum following Saudi Arabia's decision to raise September crude prices for Asian markets, marking the second consecutive monthly increase. The Kingdom lifted Arab Light crude prices by $1 to $3.20 per barrel above the Oman/Dubai benchmark, aligning with market expectations amid tightening global oil supplies. This move particularly impacts oil-importing Asian currencies, with USD/INR expected to face additional upward pressure as India anticipates increased purchases of Saudi crude following new U.S. sanctions on Russian oil. The price adjustment reflects OPEC+'s production discipline and robust regional demand, supporting the dollar against commodity-importing currencies. Technical indicators suggest USD/SAR could test recent highs if oil prices maintain their upward trajectory. Traders should monitor crude oil futures and Asian currency pairs for correlated movements, as sustained high energy costs typically weaken oil-importing nations' currencies while strengthening petrodollar flows.
USDSAR
USDINR
Sentiment:
Positive
Source: Finnhub
The US Dollar Index declined 0.37% to a one-week low as EUR/USD surged to its highest level in seven days following contrasting central bank rhetoric. ECB Governing Council member Holzmann delivered hawkish comments, stating he sees no need for further ECB rate cuts, which strengthened the euro and pressured the dollar. The diverging monetary policy outlook between the Federal Reserve and European Central Bank has become increasingly apparent, with markets pricing in potential Fed easing while the ECB maintains a more restrictive stance. Technical indicators show the Dollar Index breaking below its 20-day moving average at 104.50, with next support at 104.00. EUR/USD has cleared resistance at 1.0950 and could target 1.1000 if momentum continues. Traders should monitor upcoming economic data releases and central bank communications for further directional cues in the dollar pairs.
EURUSD
DXY
Sentiment:
Negative
Source: Marketaux
USD/CAD has declined 0.4% to 1.3760 in Tuesday's session, extending yesterday's reversal from the 100-day moving average resistance. The pair failed to sustain gains above this key technical level, prompting renewed selling pressure that pushed prices back into the 1.3700-1.3800 consolidation zone that dominated trading from early June through late July. The current level coincides with the 38.2% Fibonacci retracement at 1.3762 of the rally from July 23 lows, adding significance to this support area. Technical indicators suggest the pair may continue ranging within this familiar zone unless a catalyst emerges to break the equilibrium. Immediate resistance remains at the 100-day MA near 1.3840, while support is found at the consolidation range bottom around 1.3700. Traders are monitoring upcoming Canadian employment data and oil price movements for directional cues.
USDCAD
Sentiment:
Negative
Source: Finnhub
GBP/USD has regained the psychologically important 1.3300 level during Wednesday's trading session, rising approximately 0.2% as traders position ahead of the Bank of England's imminent monetary policy decision. The pound's recovery comes amid growing speculation that the BoE may maintain its current stance or signal a more gradual approach to future rate adjustments, contrasting with earlier hawkish expectations. Sterling found support near 1.3250 earlier in the week before mounting its recovery. Technical indicators suggest the pair faces immediate resistance at 1.3350, with a break above potentially opening the path toward 1.3400. Support remains firm at the 1.3250 area. Market participants are closely watching for any shifts in the BoE's inflation outlook and forward guidance, which could significantly impact sterling's trajectory. A hawkish surprise could propel the pair higher, while a dovish tilt may pressure the pound back below 1.3300.
GBPUSD
Sentiment:
Positive
Source: Marketaux
The New Zealand Dollar strengthened against the US Dollar following robust labour market data that could prompt the Reserve Bank of New Zealand to reconsider its easing cycle. New Zealand's employment figures exceeded expectations, showing resilience in the job market despite global economic headwinds. This development contrasts with the RBNZ's recent dovish stance and market expectations for aggressive rate cuts through 2025. The strong employment data suggests inflationary pressures may persist, potentially forcing the central bank to maintain a more hawkish approach than previously anticipated. NZD/USD has broken above the 0.6100 psychological level, with immediate resistance at 0.6150. A sustained move above this level could open the path toward 0.6200. Traders are now reassessing their positions ahead of the next RBNZ policy meeting, where any shift in tone regarding future rate cuts could significantly impact the kiwi dollar's trajectory.
NZDUSD
Sentiment:
Positive
Source: Marketaux
EUR/USD trading dynamics are shifting from tariff-focused narratives to broader geopolitical power considerations, creating new volatility patterns in the currency pair. Recent developments suggest that strategic political maneuvering between major economies is becoming a more significant driver than traditional trade concerns. The euro has shown resilience despite ongoing economic challenges in the eurozone, while the dollar's safe-haven appeal fluctuates with changing geopolitical tensions. Market participants are closely monitoring diplomatic relations and their potential impact on currency flows. Technical analysis shows EUR/USD consolidating near 1.0900, with a symmetrical triangle pattern suggesting an imminent breakout. The 10-year US Treasury yield movements continue to influence dollar strength, adding another layer of complexity to the pair's direction. Traders should prepare for increased volatility as geopolitical uncertainties may overshadow traditional economic indicators in driving short-term price action.
EURUSD
Sentiment:
Neutral
Source: Marketaux
US mortgage applications increased 3.1% for the week ending August 1, reversing the previous week's 3.8% decline as mortgage rates eased. The Market Index rose to 253.4 from 245.7, with the Purchase Index climbing to 158.0 from 155.6 and the Refinance Index jumping to 777.4 from 739.3. The 30-year mortgage rate declined to 6.77% from 6.83%, providing relief to prospective homebuyers. While this data typically has minimal direct impact on forex markets, improving housing sector conditions can signal broader economic resilience, potentially supporting USD strength. The inverse correlation between mortgage applications and rates remains intact, with lower borrowing costs stimulating demand. For forex traders, sustained improvements in US housing data could reinforce expectations of economic stability, though this single data point is unlikely to significantly influence major currency pairs in the near term.
USDJPY
EURUSD
GBPUSD
Sentiment:
Neutral
Source: Finnhub
GBP/USD's attempted recovery faces significant technical resistance as the pair struggles to break above crucial moving averages. The currency pair has been unable to sustain momentum above these key technical levels, suggesting the recent bounce may lack conviction. Technical indicators point to continued selling pressure, with the pair trading below both its 50-day and 200-day moving averages, typically bearish signals for trend followers. Market participants remain cautious on sterling's prospects amid ongoing concerns about UK economic growth and Bank of England policy uncertainty. The failure to breach these technical barriers increases the likelihood of renewed downward pressure, with immediate support seen at recent lows. Traders are closely monitoring whether GBP/USD can establish a base above current levels or if the pair will resume its broader downtrend. A decisive break above the moving averages would be needed to confirm a genuine recovery rather than a temporary correction.
GBPUSD
Sentiment:
Negative
Source: Marketaux
GBP/USD's recent rebound is displaying characteristics of a dead cat bounce, suggesting the recovery may be short-lived and lacking fundamental support. The pair's upward movement appears to be a technical correction within a broader downtrend rather than a sustainable reversal. Volume analysis indicates weak buying interest during the bounce, while selling pressure remains evident at higher levels. Technical patterns suggest the pair could resume its decline once the temporary relief rally exhausts itself. Market sentiment toward sterling remains fragile due to persistent UK economic headwinds and dovish Bank of England expectations. Key resistance levels overhead continue to cap gains, with sellers emerging on any strength. Traders should remain cautious about chasing the rally, as dead cat bounces typically lead to renewed selling once momentum fades. The absence of strong fundamental catalysts supporting GBP appreciation reinforces the technical view that this may be a temporary pause in the downtrend.
GBPUSD
Sentiment:
Negative
Source: Marketaux
The US Dollar Index is experiencing notable pressure as shifting market dynamics challenge the greenback's recent strength. Multiple currency pairs including EUR/USD, NZD/USD, and USD/CNY are showing movements that collectively weaken the dollar's position. The index faces technical and fundamental headwinds as traders reassess Federal Reserve policy expectations and global economic conditions. EUR/USD has found support amid improving European data, while NZD/USD benefits from risk-on sentiment. USD/CNY movements reflect ongoing China trade dynamics and policy adjustments. The convergence of these factors creates a challenging environment for dollar bulls, with the DXY struggling to maintain recent gains. Technical analysis of the index suggests potential for further weakness if key support levels fail. Traders are monitoring whether this represents a temporary correction or the beginning of a more sustained dollar retreat across major and emerging market pairs.
EURUSD
NZDUSD
USDCNY
DXY
Sentiment:
Negative
Source: Marketaux
USD/CAD has bounced from crucial support levels as the Canadian dollar demonstrates unexpected resilience against its US counterpart. The pair found buying interest at significant technical support, preventing a deeper decline and suggesting potential for near-term consolidation or recovery. The US Dollar Index's broader movements are influencing the pair's dynamics, while CAD strength reflects improving commodity prices and stable Canadian economic fundamentals. Oil price movements continue to play a crucial role in CAD valuation, with recent stability supporting the loonie. Technical indicators suggest the bounce may extend if support holds firm, with immediate resistance targeted at recent highs. However, the sustainability of this move depends on broader USD strength and commodity market trends. Traders are watching for confirmation of whether this represents a genuine reversal or merely a pause in CAD appreciation, with key economic data from both countries likely to provide direction.
USDCAD
DXY
Sentiment:
Neutral
Source: Marketaux
EUR/USD remains range-bound near 1.0800 levels as traders navigate through a sparse economic calendar Wednesday. The European session features only low-impact releases including Eurozone Retail Sales and Construction PMIs, which are unlikely to influence ECB policy decisions or trigger significant market movements. The American session offers similarly limited catalysts, with only Canadian PMI data scheduled for release. This lack of high-tier economic events suggests continued consolidation for major pairs as markets await more substantial drivers later in the week. Technical indicators show EUR/USD trading within a tight 30-pip range between 1.0785 support and 1.0815 resistance. The absence of meaningful data releases typically results in reduced volatility and choppy price action, with traders likely to focus on positioning ahead of Thursday's more significant economic releases.
EURUSD
USDCAD
Sentiment:
Positive
Source: Finnhub
USD/JPY has declined 0.5% to 149.20 as disappointing US economic data weighs on dollar sentiment. The US ISM Services PMI dropped to a weaker-than-expected reading, compounding concerns after Friday's poor labor market report showed unemployment rising to 4.3%. This string of weak data has traders pricing in more aggressive Fed rate cuts, with markets now expecting 125 basis points of easing by year-end. The timing is particularly challenging for USD bulls as risk sentiment deteriorates globally. Technical indicators show USD/JPY breaking below the 150.00 psychological support, with next support at 148.50 (50-day moving average). The yen is finding additional support from expectations of further BOJ rate hikes. A sustained break below 148.50 could accelerate selling toward 147.00, while any recovery faces strong resistance at 150.50.
USDJPY
Sentiment:
Very Negative
Source: Finnhub
