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Global markets opened the week with a firmer US Dollar as fading global rate-cut expectations shifted sentiment toward safety and yield stability. The Greenback strengthened across major pairs, supported by resilient US data and persistent uncertainty around economic momentum in Europe, the UK, and China. Risk currencies such as the NZD, GBP, and EUR faced renewed pressure, while commodity-linked FX lagged amid softer oil prices. With central banks turning more cautious and investors dialing back aggressive easing bets, the USD continues to draw steady demand heading into the mid-week session.
NZD/USD trades around 0.5670, struggling to extend last week’s recovery as renewed USD safe-haven demand pressures the pair. The Kiwi remains below its one-week high as investors shift toward the Greenback amid softer risk sentiment and fading Fed rate-cut expectations.
Geopolitical Risks: Global geopolitical uncertainty continues to support the USD, limiting upside for risk-sensitive currencies like the NZD.
US Economic Data: Steady US data has reinforced USD demand, contrasting with subdued New Zealand activity indicators.
FOMC Outcome: Reduced expectations for early Fed rate cuts weigh on NZD as the yield gap favors the USD.
Trade Policy: Mixed Chinese trade signals weaken Kiwi outlook given New Zealand’s export dependency.
Monetary Policy: The RBNZ’s on-hold stance offers little support compared to a more resilient Federal Reserve.
Trend: Momentum has turned slightly bearish after failing to break above 0.5700.
Resistance: Initial resistance lies at 0.5700, followed by 0.5740.
Support: Key support rests at 0.5630, with deeper support at 0.5600.
Forecast: NZD/USD may remain under pressure unless risk sentiment improves or the USD eases.
Market Sentiment: Risk appetite remains soft, favoring defensive USD positioning.
Catalysts: Upcoming US retail sales and Chinese activity data could determine short-term direction.
EUR/USD has declined toward 1.1600 as markets scale back expectations for aggressive Fed easing, supporting a broader USD recovery. The Euro remains fragile after weak Eurozone data reinforced concerns about slowing regional growth.
Geopolitical Risks: Persistent risks in Europe and Middle East tensions continue to impact the Euro’s stability.
US Economic Data: Stronger US data widens divergence and supports further downside in EUR/USD.
Trade Policy: Global trade moderation weighs on Eurozone export momentum.
Trend: Structure remains bearish below the 50-day SMA.
Forecast: EUR/USD may extend losses unless economic data from Europe improves.
Market Sentiment: Bearish sentiment persists with traders favoring USD strength.
Catalysts:Eurozone GDP and US inflation expectations are key upcoming drivers.
GBP/USD trades near 1.3150, extending losses as weak UK data fuels expectations of earlier BoE rate cuts. The pair remains under pressure as the USD strengthens and investors reduce risk exposure.
Geopolitical Risks: UK-specific political and fiscal uncertainties weigh further on Sterling.
US Economic Data: A resilient US backdrop boosts USD demand at the expense of GBP.
FOMC Outcome: Reduced Fed easing bets widen yield differentials against the Pound.
Trend: Momentum remains bearish after repeated failures to reclaim 1.3200.
Resistance: Resistance at 1.3200, then 1.3250.
Support: Next supports lie at 1.3100 and 1.3050.
Market Sentiment: Traders favor short GBP positions amid soft economic projections.
Catalysts: UK CPI, BoE commentary, and US data points.
The PBOC set the USD/CNY reference rate at 7.0816, slightly stronger than the previous fix of 7.0825. The adjustment signals the central bank’s continued intention to stabilize the Yuan amid moderate economic signals from China.
Geopolitical Risks: Ongoing regional tensions remain a background factor influencing capital flows.
US Economic Data: Firm US data keeps USD/CNY supported despite PBOC stabilization efforts.
FOMC Outcome: Less aggressive Fed easing expectations maintain upward pressure on the pair.
Trend: USD/CNY maintains a stable but slightly upward trajectory.
Resistance: Resistance forms at 7.0900, then 7.1000.
Support: Key support at 7.0700, followed by 7.0600.
Forecast: Pair likely stays range-bound unless China’s data significantly improves.
Market Sentiment: Neutral–cautious as traders assess China’s economic momentum.
Catalysts: Chinese industrial production and US macro releases.
USD/CAD holds firm near 1.4050, benefiting from a stronger USD and declining crude oil prices. The softer oil backdrop limits CAD upside, keeping the pair anchored to weekly highs.
Geopolitical Risks: Middle East and supply-chain uncertainties continue to weigh on oil-linked currencies.
US Economic Data: Steady US prints reinforce USD demand, supporting USD/CAD.
FOMC Outcome: Moderating Fed cut expectations maintain USD strength relative to CAD.
Trade Policy: Reduced global trade momentum affects Canada’s export outlook.
Trend: Bias remains bullish above the 1.4000 psychological mark.
Resistance: Immediate resistance at 1.4080, then 1.4120.
Support: Support lies at 1.4000 and 1.3960.
Forecast: USD/CAD may attempt further gains if oil prices remain under pressure.
Market Sentiment: USD-positive as investors seek stability in a cautious environment.
Catalysts: Oil inventory data, Canadian jobs releases, and US consumer sentiment.
The US Dollar maintains the upper hand as markets reassess global monetary trajectories and brace for slower policy easing across major economies. Weak UK and Eurozone data, along with mixed Chinese signals, kept risk sentiment tepid and favored defensive flows into the Greenback. As traders monitor incoming US releases and central bank commentary, currency moves are likely to stay closely tied to shifting rate expectations and broader macro uncertainty. Stay tuned as the USD remains the key driver shaping market direction in the sessions ahead.
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