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The US dollar is strengthening against the euro and the British pound, while weakening versus the Japanese yen.
The USD/JPY pair is correcting around 155.83 amid expectations of changes in the Bank of Japan’s monetary policy.
The GBP/USD pair is correcting around the 1.3257 level following the publication of the UK government budget plan by Chancellor of the Exchequer Rachel Reeves, which increases tax revenues by £26.0 billion to 38.0% of gross domestic product (GDP).
This week, the EUR/USD pair is correcting higher toward the medium-term downtrend as a possible divergence in the monetary policy paths of the European Central Bank (ECB) and the U.S. Federal Reserve plays out, with the price testing 1.1597 (Murrey level [2/8]).
Deutsche Bank believes the British Pound is positioned for a short-term relief rally on Wednesday, provided that the government’s budget avoids negative surprises related to gilt issuance, near-term deficit projections, and the amount of remaining fiscal headroom.
The US dollar is trading with near-flat dynamics against the Japanese yen around 156.63. The pair ended last week with moderate gains and also managed to обновить record January highs.
EUR/USD. The euro shows modest gains against the US dollar, correcting after the predominantly bearish movement of last week, which led to a renewal of the local lows from November 6. Market participants and forex traders are in no hurry to open new positions, waiting for fresh drivers to emerge.
EUR/USD. The euro is trading mixed against the US dollar in the EUR/USD pair, consolidating near 1.1530 as investors wait for the release of November business activity data from S&P Global and Hamburg Commercial Bank (HCOB) at 11:00 (GMT+2).
This week, the EUR/USD pair is moving lower, attempting to consolidate below 1.1536 (Murray level [1/8]) amid signs that the Federal Reserve is stepping back from further monetary easing.
Forex analysis helps traders figure out where a currency pair might move next and guides their trading decisions. It’s a daily tool for planning entries and exits, based on two main approaches. Fundamental analysis looks at the broader economy: growth, inflation, and especially central bank policy on interest rates. Technical analysis studies past price movements, chart patterns, and signals that tend to repeat over time. Together, these methods give traders a clearer picture of the market and improve decision-making.