The euro (EUR) has been one of the strongest performers this spring, rising 10% over the past two months. A major tailwind has come from the European Union’s announcement of a €500 billion defense spending package—equivalent to 3.8% of Eurozone GDP. This fiscal push, alongside improved manufacturing data and capital inflows from the U.S., has fueled optimism for the euro. In the near term, expect the USD to consolidate its recent losses—with a continued bias toward mild depreciation. Sterling is pressing higher, with GBP/USD climbing to $1.3404 after slicing through $1.3366 resistance. The pair’s uptrend remains clean and well-supported by the 50 EMA at $1.3252, while the 200 EMA sits well below at $1.3075.

  • A major tailwind has come from the European Union’s announcement of a €500 billion defense spending package—equivalent to 3.8% of Eurozone GDP.
  • While the long-term trajectory for the yen remains upward amid global uncertainty, the next move will likely be driven by bond market trends and risk sentiment.
  • However, core and headline inflation are expected to hold steady on an annualized basis.
  • The PBoC is expected to ease monetary policy further in 2025, and while USD/CNY is likely to remain range-bound, the bias is toward the lower end of its recent range as the USD weakens.
  • However, a failure to hold below these levels would indicate a false breakdown, allowing buyers to regain momentum.

The GBP, on the other hand, got under pressure mainly because of the risk-off sentiment and the US Dollar strength. If we go back into risk-on, we should see the greenback losing ground against the Pound again.

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On the daily chart, we cansee that GBPUSD is approaching a key resistancezone around the 1.29 handle. That’s where we can expect the sellers to step inwith a defined risk above the level to position for a drop into the 1.26handle. The buyers, on the other hand, will want to see the price breakinghigher to increase the bullish bets into new highs. This gave the greenback a boost although Fed Chair Powell backpedalled on the projections making them a bit less worrying as the central bank remains very data dependent. Moreover, the US Dollar found further support yesterday as the market went into risk-off mode for unclear reasons.

Pound Sterling markets will be waiting until Thursday for the latest batch of UK Gross Domestic Product (GDP) growth figures for the first quarter. Median market forecasts are expecting an upswing in QoQ GDP, anticipating Q1 GDP to rise to 0.6% QoQ versus the previous quarter’s 0.1%. On an annualized basis, forecasts expect last year’s GDP slump to still impact the data, forecasting QoY GDP fxchoice review to ease to 1.2% from 1.5%. The UK unemployment rate edged up and wage growth softened in the first quarter ahead of the rise in payroll taxes, official data revealed on Tuesday. The unemployment rate rose to 4.5 percent in the three months to March, in line with expectations, from 4.4 percent in the three months to February, the Office for National Statistics reported.

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On the 2-hour chart, the dollar sliced through key support at $98.38 (pivot), exposing it to further downside. Immediate resistance now rests at $99.02, followed by a stronger ceiling near $99.70. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

April 2021

The recent strength in the GBP/USD pair was also driven by a weaker US Dollar (USD), which came under pressure following softer-than-expected US inflation data. Attention now shifts to upcoming US economic releases, including the Producer Price Index (PPI) and the University of Michigan’s Consumer Sentiment Survey, both due later this week. Despite the greenback’s slide, downside pressure may be partially limited by recent comments from Federal Reserve officials. Chair Jerome Powell warned that rising tariffs could “intensify inflation while slowing economic growth,” making future policy moves less straightforward. The US Dollar Index (DXY) fell to around $98.30, its weakest level since March 2022, as uncertainty surrounding U.S. trade policy intensified. The decline reflects growing market anxiety following President Trump’s proposal of broad “reciprocal tariffs” on dozens of trading partners.

Forex market sentiment can be measured using various tools and indicators. One of the most popular methods of measuring sentiment is using sentiment indicators. These fxcm canada review indicators provide insights into market sentiment , such as the percentage of traders who are bullish or bearish on a particular currency. Economies.com provides the latest technical analysis of the GBP/USD (British Pound Sterling/Dollar).

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  • One of the most popular methods of measuring sentiment is using sentiment indicators.
  • Permanent staff appointments declined further amid reports of weak employer confidence and tighter hiring budgets.
  • One of the main advantages of using forex sentiment analysis is that it can help traders make more informed trading decisions.
  • However, the figure still wasn’t as good as March’s -16.9K contraction in the number of newly-unemployed workers.

The Myfxbook GBPUSD Sentiment Indicator is a very important tool for traders. It helps you make better decisions by looking at the most recent market patterns and identifying where the market is likely to change direction. The EUR/USD is one of the most widely traded currency pairs in the Forex market, where the Euro serves as the base currency and the US Dollar as the counter currency. It accounts for more than half of the total trading volume in the Forex market, making gaps almost inexistent, let alone sudden reversals caused by breakaway gaps. The Bank of England is responsible for maintaining the UK’s economic stability.

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Yesterday, the US PPI report missed expectations by a big margintriggering a selloff in the US Dollar as the market started to position into apotentially soft US CPI release today. Founded in 1694, the Bank of England (BoE) is the central bank of the United Kingdom (UK). Known as ‘The old lady of Threadneedle Street’, the bank’s mission is “to promote the good of the people of the United Kingdom by maintaining monetary and financial stability”.

You may find the analysis on a daily basis with forecasts for the global daily trend. You may also find live updates around the clock if any major changes occur in the currency pair. The NZD similarly faced volatility, dropping to a five-year low before recovering on improved U.S. trade sentiment. With the RBNZ expected to cut rates again, the NZD may struggle to hold gains without stronger economic support. While the long-term trajectory for the yen remains upward amid global uncertainty, the next move will likely be driven by bond market trends and risk sentiment.

Today we conclude the week with the University of Michigan Consumer Sentiment survey where the data is expected to show an increase to 72.0 vs. 69.1 prior. April’s US Consumer Price Index (CPI) rose 2.3% year-over-year, slightly below March’s 2.4% gain and market forecasts. Core CPI, excluding food and energy, increased by 2.8% annually, in line with both the previous month and expectations. If price stumbles, immediate support is now at $1.3366, with $1.3302 acting as a firmer floor.

The Canadian dollar (CAD) held firm against binance canada review the backdrop of rising U.S. protectionism. USD/CAD declined by 4% in April, supported by improving domestic sentiment and resilient export demand—even as U.S. tariffs weighed on Canadian manufacturing. Canada’s unemployment rate rose to 6.7% in March, and the Bank of Canada is considering a rate cut in June. Further moves in USD/CAD will depend largely on progress in U.S.-Canada trade negotiations. Arslan is a finance MBA and also holds an MPhil degree in behavioral finance.

Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. On the 1 hour chart, we can see that the price is near the lower level of the average daily range. This is where we might see a bounce as the price generally doesn’t extend beyond the level without a strong catalyst. The buyers, on the other hand, will likely step in here at the 1.27 support zone with a defined risk below it to position for a rally into new highs. The USD was sold across the board on Wednesday following the soft US CPI report.

All told, unless we see a sharp volume drop or reversal candle, this cable breakout still looks like it has room to run. On the flip side, if $98 fails to hold, we’re likely looking at the next support zones around $97.78 and $97.27. In recent days, U.S. tariffs on Chinese imports surged from 54% to 125%, while China retaliated by increasing duties on all U.S. goods to 84%. The author has not received compensation for writing this article, other than from FXStreet.