GBP/USD faces potential volatility around the 1.2650 level as markets prepare for a series of high-impact UK economic releases and the Bank of England's policy decision on Thursday. The pair has been trading in a 1.2600-1.2700 range, with sterling's direction dependent on upcoming UK CPI, retail sales, and employment data. Current market pricing suggests a 15% probability of a BoE rate cut, but weaker-than-expected inflation data could significantly increase dovish bets. November's CPI is forecast to rise to 2.6% from 2.3%, while retail sales are expected to show modest growth. Technical indicators show GBP/USD testing the 50-day moving average at 1.2645, with support at 1.2580 and resistance at 1.2720. A break below support could accelerate declines toward 1.2500, while stronger UK data might push the pair back above 1.2700.
GBPUSD
Sentiment:
Neutral
Source: Marketaux
The Japanese yen strengthened significantly against the dollar, with USD/JPY falling 0.9% to 151.10 as traders positioned for a potential Bank of Japan policy shift. The decline accelerated after breaking below the 152.00 technical support level, reaching a two-week low. Market participants are increasingly confident about a December rate hike, with overnight index swaps pricing in a 68% probability of a 25-basis-point increase. Recent comments from BoJ board members have reinforced hawkish expectations, while improving wage dynamics and steady inflation provide the central bank with room to normalize policy. Technical analysis shows USD/JPY targeting the 150.50 support zone, with momentum indicators suggesting further downside potential. Resistance is now established at 152.00-152.50. The yen's appreciation extends beyond the dollar, with crosses like EUR/JPY and GBP/JPY also declining sharply.
USDJPY
EURJPY
GBPJPY
Sentiment:
Very Negative
Source: Marketaux
USD/JPY has retreated to 151.20, down 0.4% (60 pips) as markets price in a potential Bank of Japan rate hike at the upcoming December meeting. Growing speculation about the BoJ ending its ultra-loose monetary policy has renewed focus on unwinding yen carry trades, which could trigger significant volatility. Japan's 10-year bond yields have risen to multi-year highs, reflecting changing rate expectations. The Nikkei 225 has declined 1.2% amid concerns about the impact on exporters. Technical indicators show USD/JPY approaching critical support at 150.80, with a break below potentially accelerating losses toward 149.50. Resistance sits at 152.00, coinciding with the 50-day moving average. Traders are closely monitoring BoJ Governor Ueda's comments and upcoming inflation data, which could determine whether the central bank moves away from negative rates, potentially strengthening the yen further against the dollar.
USDJPY
Sentiment:
Negative
Source: Marketaux
AUD/USD remains under pressure at 0.6645, down 0.2% (15 pips) following disappointing Chinese economic indicators that dampened risk sentiment. China's November retail sales grew only 3.0% year-over-year, missing the 4.6% forecast, while industrial production rose 5.4%, below expectations of 5.8%. The weak data from Australia's largest trading partner has weighed heavily on the commodity-linked Aussie dollar. Fixed asset investment also disappointed at 3.3% versus 3.4% expected, raising concerns about China's economic recovery trajectory. Technical analysis shows AUD/USD facing immediate resistance at 0.6680, with strong support established at 0.6620. The pair's failure to break above the 0.6700 psychological level suggests continued bearish momentum. Traders await Tuesday's RBA meeting minutes and Thursday's Australian employment data, which could provide fresh directional catalysts for the currency pair amid China's economic headwinds.
AUDUSD
Sentiment:
Negative
Source: Marketaux
Market sentiment shifts in technology stocks are creating ripple effects across forex markets, with the US Dollar Index fluctuating near 106.50 as investors reassess AI-driven equity valuations. The Nasdaq 100's 0.8% decline amid profit-taking in tech giants has prompted flows into safe-haven assets, benefiting gold which rose to $2,650/oz and silver advancing to $31.20/oz. The S&P 500's more modest 0.3% decline reflects broader market resilience outside tech sectors. This rotation has implications for dollar strength, as reduced risk appetite typically supports the greenback against higher-yielding currencies. However, concerns about overvaluation in US equities could limit dollar gains if international investors reduce exposure. Technical analysis shows DXY facing resistance at 107.00, with support at 106.20. The ongoing tech sector reassessment may continue influencing currency flows, particularly affecting risk-sensitive pairs as markets navigate year-end positioning adjustments.
DXY
Sentiment:
Neutral
Source: Marketaux
European markets face a light data calendar today, with only Swiss PPI and Eurozone Industrial Production scheduled for release. These low-tier indicators are unlikely to significantly impact currency movements or alter central bank policies. The Swiss National Bank held rates unchanged last week as expected, while slightly downgrading 2026-2027 inflation forecasts, suggesting a cautious outlook for the Swiss franc. EUR/CHF continues to trade near recent ranges around 0.9350, while USD/CHF hovers near 0.8850 levels. With no major economic catalysts, both pairs are expected to see limited volatility during the European session. Traders may look to position ahead of next week's more substantial data releases, including key inflation figures from both regions. Technical traders should monitor established support and resistance levels for potential range-bound trading opportunities in the absence of fundamental drivers.
EURCHF
USDCHF
Sentiment:
Negative
Source: Finnhub
USD/CNY strengthened 0.4% to 7.2850 following disappointing Chinese economic data that reinforced concerns about the world's second-largest economy. November retail sales grew only 1.3% year-over-year, significantly below the 2.9% forecast, marking a sharp deceleration in consumer spending. Industrial production also underperformed at 4.8% versus expectations of 5.0%. Most concerning was the property sector, with investment plummeting 15.9% in the first 11 months of 2024, accelerating from the previous decline. This data suggests China's economic recovery remains fragile despite recent stimulus efforts by the People's Bank of China. The weak data is likely to pressure the PBOC to implement further monetary easing, potentially through rate cuts or liquidity injections. Technical indicators show USD/CNY approaching the 7.30 resistance level, with momentum indicators suggesting further yuan weakness if Chinese authorities don't intervene to support their currency.
USDCNY
Sentiment:
Negative
Source: Finnhub
The US Dollar Index declined 0.4% following the Federal Reserve's third consecutive 25 basis point rate cut, bringing the federal funds rate to 4.25-4.50%. The anticipated move weighed on USD pairs, with EUR/USD gaining 0.3% to 1.0520 and GBP/USD advancing 0.2% to 1.2680. USD/JPY retreated 0.5% to 152.30 as the yen strengthened on risk-off sentiment. Stock markets delivered mixed signals, with the S&P 500 closing flat while the Nasdaq dropped 0.3%, reflecting uncertainty about the pace of future Fed cuts. Fed Chair Powell's comments suggested a more cautious approach to further easing in 2025, citing persistent inflation concerns. Technical analysis shows USD/JPY approaching key support at 152.00, while EUR/USD faces resistance at 1.0550. Traders should monitor upcoming US inflation data and Fed member speeches for directional cues on dollar positioning.
EURUSD
GBPUSD
USDJPY
Sentiment:
Negative
Source: Marketaux
USD/CAD trading at 1.4250 shows vulnerability as energy market analysis highlights structural transitions in oil and natural gas markets heading into 2026. The pair has weakened 0.2% (28 pips) as traders anticipate how evolving energy dynamics will impact the commodity-linked Canadian dollar. With Canada's economy heavily dependent on energy exports, the structural shifts in both oil and natural gas markets suggest potential CAD strength against the greenback. Trade tensions and geopolitical uncertainties that dominated 2025 energy markets are expected to continue influencing the pair's volatility. Technical indicators show immediate support at 1.4220, with resistance at 1.4300. Energy market transitions could provide fundamental tailwinds for CAD appreciation, particularly if oil prices stabilize above key levels. Traders should monitor energy sector developments closely as they may trigger significant moves in USD/CAD throughout early 2026.
USDCAD
Sentiment:
Negative
Source: Marketaux
Crude oil futures closed the week at $57.44, declining $0.16 or 0.28%, which typically supports the Canadian dollar against its US counterpart. The modest decline in oil prices reflects ongoing market consolidation after recent volatility. As Canada's primary export commodity, oil price movements directly impact CAD strength, with lower oil prices generally weighing on the currency. However, the relatively small percentage decline suggests limited immediate impact on USD/CAD. The pair has been trading in a tight range, with oil prices providing marginal directional bias. Technical indicators show USD/CAD holding above key support levels despite the oil weakness. Traders should monitor the $57.00 psychological level in crude oil, as a break below could accelerate CAD weakness and push USD/CAD higher. The upcoming week's oil inventory data and OPEC commentary will be crucial for determining whether this decline marks the beginning of a larger correction or merely represents end-of-week profit-taking.
USDCAD
Sentiment:
Neutral
Source: Finnhub
USD/CHF declined following the Swiss National Bank's decision to keep interest rates unchanged at 0.0%, with sellers defending key technical resistance levels. SNB Chairman Martin Schlegel emphasized the central bank's continued "expansive" monetary policy stance, designed to support economic growth. The chairman noted that midterm inflation pressures remain essentially unchanged, suggesting no immediate need for policy tightening. The combination of dovish SNB commentary and technical resistance has pressured the pair lower, with traders now monitoring key support levels. The SNB's commitment to maintaining accommodative policy contrasts with other major central banks' tightening cycles, potentially limiting CHF strength. However, the franc's safe-haven status continues to provide underlying support during periods of market uncertainty. Near-term technical outlook suggests further downside potential if current resistance holds, with traders watching for any shifts in global risk sentiment that could impact the pair's trajectory.
USDCHF
Sentiment:
Negative
Source: Finnhub
The US dollar weakened against major currencies as futures retreated from record highs, with markets interpreting Federal Reserve policy as supportive of risk assets through what analysts term "QE Lite." This accommodative stance has set up expectations for a potential Christmas rally in equity markets, typically negative for the dollar's safe-haven appeal. The Fed's continued balance sheet management and liquidity provisions are maintaining favorable financial conditions despite official rate levels. Currency traders are repositioning ahead of year-end flows, with the dollar index showing signs of topping after recent strength. Risk-sensitive currencies like AUD and NZD could benefit from improved sentiment, while traditional safe havens JPY and CHF may see reduced demand. The setup suggests potential dollar weakness through year-end as investors rotate into higher-yielding assets. Technical indicators point to key support levels being tested across major dollar pairs.
EURUSD
GBPUSD
USDJPY
AUDUSD
NZDUSD
USDCHF
USDCAD
Sentiment:
Negative
Source: Marketaux
USD/JPY has climbed 0.26% to 156.00, leading major currency pairs as the dollar stabilizes following two days of declines. The move comes as Treasury yields rebound, with the 10-year yield rising 3.7 basis points, reversing last week's similar decline. Bank of Japan officials are signaling that their rate-hiking cycle will likely extend beyond 0.75%, providing fundamental support for the yen's longer-term outlook. However, the immediate price action favors dollar strength as markets position ahead of the North American session. Technical analysis shows EUR/USD and GBP/USD setting the directional tone, with traders closely monitoring these pairs for broader market sentiment. The combination of rising US yields and BoJ policy expectations creates a complex trading environment, suggesting increased volatility ahead as central bank divergence remains a key theme.
USDJPY
EURUSD
GBPUSD
Sentiment:
Neutral
Source: Finnhub
EUR/USD continues its upward trajectory, testing the European Central Bank's dovish stance as markets position ahead of crucial US employment data. The pair's strength reflects growing speculation about potential Fed policy adjustments, with traders increasingly betting on a less aggressive US monetary stance. The dollar's recent weakness across major pairs, including USD/CHF and USD/CAD, underscores shifting market dynamics. Dollar Index futures indicate broader uncertainty about the greenback's near-term direction. Technical indicators suggest EUR/USD faces immediate resistance near recent highs, while support has consolidated around key moving averages. The upcoming US jobs report remains the primary catalyst, with potential to either validate the euro's recent gains or trigger a sharp reversal. Market positioning appears stretched, suggesting heightened sensitivity to any data surprises that could influence central bank policy trajectories.
EURUSD
USDCHF
USDCAD
Sentiment:
Positive
Source: Marketaux
The US dollar has found stability following recent declines, with traders carefully digesting Federal Reserve policy communications. EUR/USD and GBP/USD show consolidation patterns as market participants reassess rate differential expectations between major central banks. Dollar Index futures reflect the currency's attempt to establish a base after testing support levels. The stabilization comes amid mixed signals from Fed officials regarding the pace of future policy adjustments. Technical analysis reveals the dollar trading near pivotal levels against both the euro and pound, with momentum indicators suggesting a potential pause in the recent selling pressure. Market sentiment remains cautious, with traders awaiting additional economic data to confirm the Fed's policy trajectory. The current price action suggests a period of range-bound trading may emerge as markets seek clearer directional catalysts from upcoming economic releases and central bank communications.
EURUSD
GBPUSD
Sentiment:
Positive
Source: Marketaux
USD/CAD has tumbled to its lowest level in three months, reflecting significant Canadian dollar strength amid supportive commodity prices and shifting market dynamics. The pair's sharp decline accelerated through key technical support levels, triggering stop-loss orders and momentum-based selling. Oil prices remain elevated, providing fundamental support for the commodity-linked Canadian currency. The move also reflects broader US dollar weakness, with traders reassessing Fed rate expectations following recent economic data. Technical indicators show USD/CAD approaching oversold conditions, though momentum remains firmly bearish. The 3-month low marks a significant psychological level, with potential for either a technical bounce or continued decline depending on commodity trends and upcoming economic releases. Traders are closely monitoring oil market developments and Canadian economic data for signs of whether this CAD strength can sustain or if a reversal might emerge.
USDCAD
Sentiment:
Very Negative
Source: Marketaux
GBP/USD trades cautiously near 1.2750 ahead of UK October GDP data, expected to show 0.1% monthly growth versus -0.1% previously, with annual growth forecast at 1.4% compared to 1.1% prior. The improved growth outlook could provide modest support for sterling, though market impact may be limited as the Bank of England remains data-dependent amid persistent inflation concerns. European markets await final inflation readings from Germany, France, and Spain, though these confirmatory figures are unlikely to alter ECB policy trajectory. EUR/GBP hovers around 0.8350 as traders balance UK growth prospects against eurozone inflation dynamics. Technical resistance for GBP/USD sits at 1.2800, while support holds at 1.2700. The session's data releases are expected to generate limited volatility, with traders maintaining positions ahead of next week's Federal Reserve and ECB meetings for clearer policy direction.
GBPUSD
EURGBP
Sentiment:
Neutral
Source: Finnhub
EUR/USD has surged toward the 1.1750 level, displaying robust bullish momentum as traders position for continued euro strength. The pair has gained approximately 0.5% (60 pips) in recent sessions, breaking through multiple resistance levels. The rally is driven by a combination of dollar weakness reflected in the declining US Dollar Index and improving risk sentiment across global markets. Technical indicators suggest strong buying pressure, with the RSI entering overbought territory above 70, while the pair trades well above its 50-day and 200-day moving averages. The psychological 1.1750 level represents a key resistance zone that hasn't been tested since early 2024. A decisive break above this level could open the path toward 1.1800 and potentially 1.1850. Traders should monitor upcoming US inflation data and ECB policy signals for potential catalysts that could either accelerate the uptrend or trigger profit-taking at these elevated levels.
EURUSD
Sentiment:
Very Positive
Source: Marketaux
The US dollar index (DXY) has declined 2.8% year-to-date, extending losses across major forex pairs after years of sustained appreciation. Scotiabank analysts predict this represents the early stages of a prolonged dollar bear market, citing shifting Federal Reserve policy expectations and improving global growth dynamics. EUR/USD has gained 3.2% to trade near 1.0950, while GBP/USD advanced 2.5% toward 1.2800. The weakening trend accelerated after recent US economic data showed moderating inflation and softer labor market conditions, reducing expectations for aggressive Fed tightening. Technical indicators suggest DXY support at 101.50 is vulnerable, with a break potentially triggering moves toward the 100.00 psychological level. Currency strategists highlight that positioning data shows speculators reducing dollar longs, indicating momentum shift. For forex traders, this environment favors long positions in major pairs against USD, particularly on pullbacks to key support levels.
EURUSD
GBPUSD
USDJPY
USDCHF
AUDUSD
USDCAD
NZDUSD
Sentiment:
Very Negative
Source: Finnhub
XAG/USD has skyrocketed approximately 3.2% ($2.00) to trade above $64.00 per ounce, marking a new all-time high and capping an extraordinary 120% year-to-date rally. The precious metal's parabolic move is fueled by a chronic supply deficit entering its fifth consecutive year, with global demand significantly outpacing production. Industrial consumption, particularly from solar panel manufacturing and electronics sectors, continues to surge while mine supply remains constrained. The gold-silver ratio has compressed dramatically, suggesting further upside potential as investors rotate into the historically undervalued metal. Technical indicators show extremely overbought conditions, with immediate resistance at $65.00 psychological level and support forming at $62.50. The explosive rally in silver is creating ripple effects across commodity currencies, particularly benefiting AUD/USD and NZD/USD pairs. Traders should monitor potential profit-taking at these elevated levels while the fundamental supply-demand imbalance suggests sustained bullish momentum.
XAGUSD
XAUUSD
AUDUSD
NZDUSD
Sentiment:
Very Positive
Source: Finnhub
