Sharp drop in US Dollar (USD) has scope to extend against Japanese Yen (JPY), but any decline may not break below 145.80, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Pound Sterling (GBP) reached a marginal new short term high in overnight trade as Asian markets caught up to the hawkish turn of events at yesterday’s BoE policy decision, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
The Euro (EUR) is trading a little lower overall on the day but is holding a net gain on the week, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Strong momentum suggests further Pound Sterling (GBP) strength; the major resistance at 1.3515 is likely out of reach for now. In the longer run, rapid increase in momentum could lead to GBP rising to 1.3515, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) may retest, and potentially edge above 1.1700; it does not appear to have enough momentum to threaten 1.1720. In the longer run, EUR is likely to trade with an upward bias; it is unclear for now if it can reach 1.1720, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Donald Trump nominated Stephan Miran as the new Fed governor on social media yesterday evening, weakening the US dollar, at least in the short term. Miran replaces Adriana Kugler, who resigned unexpectedly and prematurely last week.
President Trump nominated Stephen Miran to fill the vacant FOMC seat until the end of January, pending Senate confirmation in September, ING's FX analyst Francesco Pesole notes.
USD/JPY consolidated this week, in absence of fresh catalyst as markets await US CPI next Tuesday. Pair was last at 14784 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
After an initial positive spillover on the euro from news of Trump meeting with Putin next week, markets now need to assess how realistic a truce is, ING's FX analyst Francesco Pesole notes.
US Dollar (USD) slipped in reaction to Trump nominating Stephen Miran to temporarily serve as Fed Governor (seat vacated by Kugler). DXY was last at 98.24 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after two days of losses and trading around 98.20 during the early European hours on Friday.
The EUR/CAD cross attracts some sellers to around 1.6000 during the early European trading hours on Friday. All eyes will be on the Canadian employment report for July, which is due later on Friday. Canada is expected to show moderate job growth and a higher Unemployment Rate in July.
The EUR/JPY cross loses traction to around 171.60 during the early European session on Friday. The Japanese Yen (JPY) edges higher against the Euro (EUR) after the Japanese trade envoy’s comments.
The EUR/USD turned flat late on Thursday, spurred by rumors that the White House is considering Federal Reserve Governor Christopher Waller as the top candidate to be the next Fed Chair, succeeding Jerome Powell.
Gold price reverses its course and registers solid gains on Thursday as the latest round of jobs data in the United States (US) points to a weakening labor market. Consequently, investors increased their dovish bets as the Federal Reserve (Fed) is expected to resume its easing cycle in September.
USDCAD remains directionless amidst a tug of war between key moving averages, signaling indecision in the market. Trade tactically within the established range until a clear breakout occurs.
The GBP/USD surges during the North American session, though trading below an eight-day high reached at 1.3436 after the Bank of England (BoE) decided to cut interest rates on a close vote split, signaling that policymakers remained worried about inflation.
Gold (XAU/USD) continues to consolidate within this week’s established range, trading near $3,380 at the start of the American trading session following mixed US labor market data.
The Euro (EUR) has made a little progress on the US Dollar (USD) over the course of the session but has backed off of its earlier highs just under 1.17, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
The Pound Sterling (GBP) was steady, holding near session highs on the soft USD ahead of the BoE, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
US Dollar (USD) is expected to consolidate in a range of 7.1780/7.1980. In the longer run, USD appears to have moved into a 7.1600/7.2240 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The current price movements still appear to be part of a consolidation phase, likely between 146.90 and 148.00. In the longer run, sharp drop in USD has scope to extend, but any decline may not break below 145.80, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New Zealand Dollar (NZD) could advance further but is unlikely to be able to reach 0.5960. In the longer run, NZD is expected to range trade, most likely between 0.5860 and 0.5960, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
There is scope for Australian Dollar (AUD) to test 0.6520 before a pullback can be expected. In the longer run, the current price movements are likely part of a 0.6450/0.6555 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Overbought advance in Pound Sterling (GBP) could extend against US Dollar (USD), but a clear break above 1.3385 is unlikely. In the longer run, GBP has likely entered a 1.3285/1.3425 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
US Dollar (USD) extended its slippage overnight. Fedspeaks this week from officials, including Lisa Cook, Kashkari and Mary Daly have also been on a slightly dovish tilt, adding to USD softness. DXY was last at 98.10, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Developments this week are unfolding rapidly across three key areas: tariffs, geopolitics, and the Federal Reserve. The first two are somewhat interconnected when it comes to India, which has faced a tariff hike to 50% in response to its economic ties with Russia.
EUR/JPY holds ground after registering gains in the previous two consecutive sessions, trading around 171.90 during the European hours on Wednesday. The technical analysis of the daily chart suggests the ongoing neutral market bias as the currency cross remains within the rectangular pattern.
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