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Silver rises 0.39%, trading at $31.82 as buyers push prices above the opening level, reclaiming $31.50.
RSI hints at consolidation ahead, with a break above $32.30 needed to challenge the YTD high of $32.71.
A fall below $31.00 could lead to a deeper pullback, with key support levels at $30.50 and the 100-DMA at $29.74.
Silver price recovered some ground on Wednesday, advanced some 0.39%, and reclaimed the $31.50 figure as buyers stepped in and pushed the grey’s metal price above its opening price. Higher US Treasury bond yields capped its advance, yet XAG/USD trades at $31.82 as Thursday’s Asian session begins.
XAG/USD Price Forecast: Technical outlook
Silver price has printed back-to-back bullish days, yet it failed to surpass the $32.00 figure, exposing the grey metal to selling pressure. The Relative Strength Index (RSI) hints that buyers remain in control, but it has turned flat, indicating that consolidation lies ahead.
If XAG/USD clears the October 2 peak of $32.30, it will resume its uptrend and challenge the year-to-date (YTD) high of $32.71. A breach of the latter will push Silver to $33.00 before testing on October 1, 2012, high at $35.40.
On the other hand, if XAG/USD dives beneath the October 2 daily low of $31.00, this would sponsor a leg-down to the psychological $30.50 figure, followed by the 100-day moving average (DMA) at $29.74, ahead of the 50-DMA at $29.32.
XAG/USD Price Action – Daily Chart
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Economists predict the ISM Services PMI will increase from 51.5 in August to 51.6 in September. A larger-than-expected increase would signal a robust US economy as the services sector accounts for nearly 80% of GDP. Conversely, a drop below 50 could reignite fears of a hard US landing, possibly pushing the USD/JPY below 145.
Short-term Forecast for USD/JPY
USD/JPY trends will likely hinge on the Services PMI from Japan and the US. Upbeat figures from Japan and a weaker ISM Services PMI could fuel expectations of monetary policy divergence favoring the Yen. This combination may send the USD/JPY below 145.
Traders should stay vigilant as this week’s data will impact trading USD/JPY strategies. Monitor real-time data, central bank views, and expert commentary to adjust your trading strategies accordingly. Stay ahead of the market with our expert insights.
USD/JPY Technical Analysis
Daily Chart
The USD/JPY hovers above the 50-day EMA while remaining below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.
A USD/JPY return to 147.5 could bring the 148.529 resistance level into play. Furthermore, a break above the 148.529 resistance level may signal a move toward the 200-day EMA.
The US and Japan’s Services PMIs and central bank commentary require consideration.
Conversely, a break below the 50-day EMA and the 145.891 support level could give the bears a run at the 143.495 support level.
The 14-day RSI at 58.20 suggests a USD/JPY climb to the 200-day EMA before entering overbought territory.
USD/JPY surges over 2%, rallying from a low of 143.42 following comments from Japan’s Prime Minister Ishiba.
The pair breaks significant resistance, including the 50-DMA at 145.53, now trading near 146.47.
For a bearish reversal, USD/JPY needs to drop below the 50-DMA, with 145.00 as the subsequent key support.
The Greenback recovered against the Japanese Yen on Wednesday, rallying over 2% after Japanese Prime Minister Ishiba commented the economic environment is not ready for additional rate hikes. Hence, the USD/JPY jumped off daily lows of around 143.42 and soared sharply toward current exchange rates. At the time of writing, the pair trades at 146.47.
USD/JPY Price Forecast: Technical outlook
The USD/JPY has broken key resistance levels and is descending toward the bottom of the Ichimoku Cloud (Kumo).
Firstly, it broke a resistance trendline drawn from around August 15 highs, which passed at around 144.00/10. Once this was cleared, it opened the door for further upside.
After that, the USD/JPY climbed above the October 1 high of 144.53, followed by the 145.00 figure. Once surpassed, there was not in the bull’s path as they exceeded the 50-day moving average (DMA) at 145.53, on its way toward the current exchange rates.
For a bearish resumption, the USD/JPY must clear the 50-DMA on the downside, which will expose the 145.00 mark.
USD/JPY Price Action – Daily Chart
Japanese Yen PRICE Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the British Pound.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
-0.02%
0.02%
-0.01%
0.02%
0.00%
-0.38%
-0.00%
EUR
0.02%
0.02%
-0.02%
0.03%
0.04%
-0.39%
0.02%
GBP
-0.02%
-0.02%
-0.06%
-0.02%
0.02%
-0.01%
0.01%
JPY
0.01%
0.02%
0.06%
0.04%
0.05%
-0.02%
0.05%
CAD
-0.02%
-0.03%
0.02%
-0.04%
0.00%
-0.09%
-0.00%
AUD
-0.00%
-0.04%
-0.02%
-0.05%
-0.01%
-0.02%
0.02%
NZD
0.38%
0.39%
0.00%
0.02%
0.09%
0.02%
0.01%
CHF
0.00%
-0.02%
-0.01%
-0.05%
0.00%
-0.02%
-0.01%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Geopolitical tensions in the Middle East undermined the market mood on Wednesday.
The US ADP report hinted at a resilient labor market, hints at modest interest rate cuts.
XAU/USD aims to resume its advance in the near term, resistance at around $2,670.
Spot Gold hovers around $2,650 a troy ounce on Wednesday, confined to a tight trading range amid a generally pessimistic market mood favoring both Gold and the US Dollar (USD). The Middle East conflict, with Israel and Iran launching back-and-forth attacks, weighs on investors’ mood. Fears of supply disruptions push crude oil prices higher and speculative interest into safe-haven assets. Stock markets traded mixed in Asia and Europe, as the massive Chinese stimulus announced last week partially offsets geopolitical tensions.
Wall Street opened mixed, with only the Dow Jones Industrial Average (DJIA) trading in positive territory, up a modest 0.02% at the time of writing. The Nasdaq Composite and the S&P500 trade in the red, albeit losses are modest. American traders are digesting United States (US) employment data, as the ADP report on private job creation showed 143,000 new positions were added in September, better than the 120,000 anticipated by market participants.
The encouraging figures back the Greenback ahead of the September Nonfarm Payrolls report to be released on Friday. Federal Reserve (Fed) officials expressed concerns about the employment situation, shifting the focus away from inflation. Generally speaking policymakers are confident about inflation moving towards their 2% goal. However, the once-hot job market has lost steam over the last few months, and softer-than-anticipated figures could prompt the Fed into more aggressive rate cuts. That’s not the case following the ADP release, one of the reasons US indexes stay afloat.
XAU/USD short-term technical outlook
The daily chart for XAU/USD shows it trimmed early losses and hover around its opening. Moving averages head firmly north, far below the current level, maintaining the long-term bullish trend alive. Technical indicators, in the meantime, turned lower, although they stand far above their midlines and with limited downward strength, falling short of suggesting a steeper decline.
In the near term, and according to the 4-hour chart, XAU/USD is aiming to resume its advance. The pair is trading just above a flat 20 SMA, while the 100 and 200 SMAs aim higher far below the shorter one, all supportive of a bullish extension. Finally, technical indicators resumed their advances and are currently crossing their midlines into positive territory, reflecting increased buying interest.
The West Texas Intermediate Crude Oil Market, or US oil, skyrocketed after initially falling during the trading session.
I think at this point in time, we are in the midst of forming some type of major bottoming pattern and that of course is something worth paying close attention to.
After all, the $66 level has been a major floor in the market for quite some time, at least two years, and I think that will continue to be something that you must pay attention to.
Furthermore, you also have to keep in mind that a lot of questions will be asked about the tensions and the combat in Lebanon. So, with all of that being said, the Middle East could continue to be a bit of a tinderbox. Furthermore, you have the Russians and the Ukrainians fighting still, so it does make a certain amount of sense that oil can only fall so far. Adding more credence to the move is the fact that the JOLTS job openings number in the United States came out hotter than anticipated, so while PMI numbers are starting to shrink, the job openings are still pretty robust and that suggests that there could be a bit of demand coming into the picture. And then finally you have a potential port strike throughout the United States which would pretty much cut off imports.
So, with that being said I think you’ve got a situation where we definitely favor the upside over the down but that doesn’t necessarily mean that we break out right away. I think short-term pullbacks continue to be buying opportunities. Why wouldn’t necessarily go so far as to say that this is a “one-way trade”, certainly it seems like it’s going to take a lot of effort to finally break down below the $66 level, and through the bottom of the consolidation range that we have been in over the last couple of years. All things being equal, I think the risks still seem to the upside more than anything else right now.
Gold price holds previous gains below record high, as traders digest Israel-Iran geopolitical risks.
The Dollar pauses recovery amid risk reset, ahead of US ADP data and Fedspeak.
The daily technical setup favors Gold buyers, as the RSI stays firm in the bullish zone.
Gold price is consolidating the previous recovery near $2,660 in Asian trading on Wednesday, aa buyers catch a breather amid the Iran-Israel geopolitical escalation while awaiting the key US ADP Employment Change data and a flurry of speeches from US Federal Reserve (Fed) policymakers.
Gold price keeps an eye on geopolitics, US events
Despite persisting fears of an Iran-Israel conflict turning into a wider regional war, the Asian markets have calmed down a bit, as they believe that Iran may not pursue a full-fledged war with Israel and that it would urge de-escalation in the same way as it did after the April missile strikes.
Iran’s Revolutionary Guard said early Wednesday that Iranian forces on Tuesday used hypersonic Fattah missiles for the first time and 90% of its missiles successfully hit their targets in Israel.
“Our action is concluded unless the Israeli regime decides to invite further retaliation. In that scenario, our response will be stronger and more powerful,” Iranian Foreign Minister Abbas Araqchi said in a post on X early Wednesday.
Tehran said this attack was in response to Israeli killings of militant leaders and aggression in Lebanon against the Iran-backed armed movement Hezbollah and in Gaza.
If Middle East geopolitical tensions dissipate on no further potential aggression from Israel, the traditional safe-haven, Gold price, will likely come under renewed selling pressure.
However, the US ADP Employment Change data and Fedspeak will be next of note for the US Dollar and Gold price, as the events could provide fresh hints on the size of the next Fed interest rate cut. The US private sector employment is expected to rise by 120K in September, up from a 99K job gain in August.
Tuesday’s mixed US ISM Manufacturing PMI and JOLTS Job Openings data failed to offer any clear signals on the direction of the Fed interest rate outlook. Meanwhile, Atlanta Fed President Raphael Bostic repeated that he is “open to another half-percentage point rate cut if the labor market shows unexpected weakness.”
Markets continue pricing in about a 37% chance that the Fed will lower rates by 50 basis points (bps) in November, down from 53.3% seen at the start of the week, according to CME Group’s FedWatch Tool.
Besides, the news of Iranian bombings on Israel dominated markets and triggered a broad risk-aversion wave, spiking up the safety bets in Gold price, the US Dollar and government bonds.
Gold price technical analysis: Daily chart
The daily technical setup for Gold price remains constructive as the 14-day Relative Strength Index (RSI) holds firm near 68.00, despite turning slightly lower.
Gold price needs to yield a daily candlestick closing above the static resistance near $2,670 for a renewed upside. The next resistance is aligned at the record high of $2,686.
Further up, buyers will target the $2,700 round level, followed by the rising trendline resistance at $2,730.
Alternatively, if Gold sellers flex their muscles, acceptance below the September 24 low of $2,623 is critical to unleashing further downside toward the $2,600 threshold.
Gold sellers could then challenge the September 20 low of $2,585, where the 21-day Simple Moving Average (SMA) hangs around.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
The EUR/USD exchange rate is poised to decline for the third consecutive day, driven by a decline in September’s Eurozone inflation figures and diverging communications between global central banks.
The EUR/USD pair has lost ground, reaching the nearest support level of 1.1045, threatening to break below the crucial 1.1000 level.
The pair had previously surrendered its strong gains at the end of last month, reaching a resistance level of 1.1214, at which point we recommended selling the pair, a recommendation that proved highly successful.
According to the results of the economic calendar, the inflation rate in the Eurozone reached 1.8% year-on-year in September, down from 2.2% in August, and is now comfortably below the European Central Bank’s target of 2.0%. Core inflation, which is a major concern for the ECB, fell to 2.7% from 2.8%. furthermore, the decline in September’s inflation figures increases the likelihood of an October rate cut by the European Central Bank and a large 50bp move in either October or December.
Commenting on the performance and influencing factors, Joe Touky, Head of Forex Analysis at Argentus, stated that annual inflation at 1.8% was in line with expectations and did nothing to change the current cautious outlook for European monetary policy. The EUR/USD pair remains weaker, capped by strong technical resistance at 1.12, and is heading towards technical chart support at 1.1015.
In an appearance before European lawmakers on Monday, ECB President Christine Lagarde indicated that an October rate cut was on the table because she was comfortable with the idea that inflation was now clearly on the downside and that upside risks were fading. Last week, the ECB was expected to cut rates again in December, opting to continue with a quarterly pace of rate cuts. Nevertheless, those expectations were undermined by the release of weak French and Spanish inflation data on Friday, which suggested today’s figure would surprise to the downside.
Francesco Pesole, a forex analyst at ING Bank, said that the swap rate continued to widen in favor of the US dollar, now at around -110 basis points, about 25 basis points below mid-September levels of -85 basis points. He added, “The idea that an inflation-concerned ECB will move more cautiously than the Fed on easing is falling apart. It seems increasingly likely that keeping rates on hold in October could mean a 50-basis point cut in December, which explains the market’s pricing of -52 basis points by year-end, with 22 basis points priced in for this month.”
While ECB President Lagarde was encouraging financial markets to bet on a faster pace of rate cuts, her counterpart at the Fed indicated a rejection of expectations for another 50-basis point cut in 2024. Jerome Powell was clear that he believed two more 25 basis point moves were sufficient, which is less than the 70 basis points currently expected by the market.
EUR/USD Technical analysis and forecast:
According to the analyst, the large moves in short-term interest rate differentials between the EUR and the USD are pointing to weakness in the EUR/USD pair now. Consequently, we believe that the EUR/USD pair could trade again below the 1.110 level in the next couple of days, testing the 1.100 level if the US unemployment rate does not rise on Friday.
According to reliable trading platforms, the EUR/USD pair continues to face downward pressure as the US dollar (USD) rises, following lower expectations of a large rate cut by the US Federal Reserve (Fed) in November. The US Dollar Index (DXY), which tracks the US dollar against six major currencies, rose above 101.00. According to the CME FedWatch tool, the probability of a 50-basis point rate cut by the Fed in November has fallen to 35.3%, down from 58% just a week ago.
Recent statements by Federal Reserve Chair Jerome Powell at the National Association for Business Economics conference played a key role in calming market expectations for a significant rate cut. Powell indicated that the Fed is likely to cut US interest rates by 25 basis points in both of the remaining meetings this year, resulting in a cumulative cut of 50 basis points. Powell’s comments emphasized a cautious approach, balancing inflation control with economic stability. However, some Fed officials, such as Atlanta Fed President Raphael Bostic, still support a more aggressive 50 basis point cut if labor market data shows signs of weakness. This places more attention on upcoming US jobs reports, including the ADP employment change data and the September non-farm payrolls data, scheduled to be released on Wednesday and Friday, respectively.
Silver price receives support from the safe-haven flows amid escalating Middle-East tensions.
Non-yielding Silver could be negatively impacted by prolonged high rates amid the diminishing likelihood of a big Fed rate cut.
A decline in China’s manufacturing activity might have restrained the positive impact of fiscal and monetary stimulus on Silver demand.
Silver price (XAG/USD) extends its gains for the second consecutive day, trading around $31.50 per troy ounce during the European hours on Wednesday. The upside of the Silver prices is attributed to the safe-haven flows amid escalating geopolitical tensions in the Middle East.
Iran launched over 200 ballistic missiles at Israel on Tuesday, shortly after the US had warned that a strike was imminent. The Israel Defense Forces reported that several of the missiles were intercepted, while reports indicated that one person was killed in the West Bank, according to Bloomberg.
Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against Iran following a missile attack on Tuesday. In response, Tehran warned that any counterstrike would lead to “vast destruction,” raising concerns about the potential for a broader conflict.
On Tuesday, the weaker-than-expected ISM Manufacturing PMI made room for the US Federal Reserve (Fed) to continue lowering rates. The index came at 47.2 for September, matching the reading with August’s print but came in below the market expectation of 47.5. However, Fed Chair Jerome Powell said on Monday the central bank is not in a hurry and will lower its benchmark rate gradually ‘over time.’
The CME FedWatch Tool indicates that markets are assigning a 62.7% probability to a 25 basis point rate cut by the Federal Reserve in November, while the likelihood of a 50-basis-point cut is 37.3%, down from 57.4% a week ago. Prolonged higher interest rates keep the opportunity cost higher of holding non-yielding assets like Silver, making it less appealing to investors who seek more attractive, yield-bearing alternatives.
Silver demand has been bolstered by China’s fiscal and monetary stimulus, particularly benefiting industrial applications in one of the world’s largest manufacturing hubs. However, weaker-than-expected demand growth in China, compounded by data indicating a decline in manufacturing activity, might have limited the upside potential of the grey metal.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
The US dollar is seeing increased demand at the start of the new month and quarter, buoyed by the latest guidance from Federal Reserve Chair Jerome Powell regarding US interest rates.
Powell indicated on Monday that the Fed anticipates implementing two more interest rate cuts by the end of 2024, which is fewer than the market had previously expected.
Consequently, this new guidance has exerted downward pressure on the GBP/USD currency pair, pushing it below its 2024 highs to 1.3242 at the time of writing on October 1st.
Commenting on the performance and influencing factors, Achilles Georgopoulos, investment analyst at XM.com, stated: “The US dollar has reacted positively to Powell’s comments and gained ground across the board.”
Prior to Powell’s statement, the market had been anticipating a more aggressive rate cut of up to 70 basis points for the remainder of the year. However, this new guidance from the Chair suggests that the financial markets should adjust their expectations to anticipate two additional 25 basis point moves. According to analysts at ING Bank, “Powell explicitly rejected a 50-basis point rate cut by the end of the year.”
Increasingly, financial markets have been bold in their thinking that the Fed will cut rates quickly now, which would boost the US economy, lower bond yields and pressure the US dollar. According to analysts, Powell said the base case was for two 25 basis points moves by year-end, an unusually specific guidance that suggests his displeasure with the market’s dovish pricing.
For their part, Goldman Sachs analysts say the US economy is still producing “relatively strong activity data” and “recent labor market news has been relatively encouraging.” Given this, Kamakshya Trivedi, Goldman Sachs FX analyst, says, “The recent trend of selling the US dollar on all sorts of news seems unsustainable.”
Nevertheless, Powell’s message is not entirely clear-cut, and it’s not unusual for markets to debate a 25-basis point rate cut given the broader evidence pointing to a larger interest rate cut in the coming months. Therefore, the comments do not represent a shift in the declining trend of the US dollar, and the path of least resistance for the GBP/USD remains higher, albeit likely at a slower pace with deeper pullbacks along the way.
Technical forecasts for the GPB/USD pair today:
Overall, the upcoming US jobs report on Friday will be crucial in this regard. A reading that exceeds consensus expectations could reinforce the notion that the Fed will need to proceed slowly with interest rate cuts. If this view becomes more entrenched, it could lead to a period of GBP/USD weakness. With the pair trading below the 1.3350 level, technical forecasts indicate a bearish bias in the near term, especially after failing to establish itself above the 1.3400 level. The 1.3145 support level will remain key to the bears’ dominance over the trend. In general, traders will be closely monitoring upcoming US data and Fed comments for potential shifts in sentiment. Decisively, the US dollar is likely to remain supported if the data confirms the Fed’s cautious but steady approach to monetary policy.
