Forex

The timing of Moody’s U.S. downgrade couldn’t be worse for a dollar already looking shaky. With EUR/USD and USD/JPY testing key levels and gold extending its bounce, traders will be watching trade and tax headlines closely to kick off the new week.

Traders searching for clues in Moody’s downgrade may find little from past episodes. But in a market questioning U.S. credibility, USD/JPY could start to reflect that doubt.

Over the past three trading sessions, EUR/USD has remained in a state of neutral consolidation, with price movement limited to just 0.3%, reducing the bullish momentum that had begun to build earlier in the week.

A bullish break above this week’s high near 1.3360 would confirm a breakout and set the stage for a rally to 3+ year highs into at least the mid-1.3400s in GBP/USD.

This US-China trade truce has only had a limited influence on the dollar, with the greenback held back by soft data. Against this backdrop, the EUR/USD forecast remains modestly positive in the near-term outlook.

After stalling below a key Fib retracement, USD/CHF has slipped back to familiar ground. With no clear momentum signal and limited data ahead, traders may need to watch support levels closely for clues on the next swing.

Big downside surprises in US producer prices, retail sales, and factory output fuelled hopes the Fed could cut sooner, knocking yields and lifting equities. Gold loved it, crude didn’t—but FX markets stayed aloof, clinging to the charts over fundamentals.

USD/MXN has started to post a gain of around 0.7% in favor of the U.S. dollar, mainly as the market positions ahead of the Bank of Mexico’s upcoming monetary policy decision.

The greenback catches a bid on reports that currencies are not the focus of U.S. trade negotiations. Focus now shifts to Australian jobs data, US inflation inputs, and gold’s precarious technical break.

EUR/USD snapped back after breaking key support at 1.1200, but with bond yields climbing and Fed cut pricing slipping, it’s tough to back the move without confirmation from rates.

AUD/USD surged as US–China trade optimism and yuan strength boosted sentiment. But with resistance near and risk appetite fading, Aussie bulls may face hurdles ahead.