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EUR/USD The European currency is consolidating around 1.1640 and local lows updated at the end of last week, as market participants assess key U.S. macroeconomic data released the day before.
Prospects for strengthening of the Japanese currency appear limited, despite the high level of public support for the new Prime Minister Sanae Takaichi.
United States. The U.S. dollar is losing ground against its major peers—the euro, the pound, and the yen.
The U.S. dollar is showing mixed dynamics against the Japanese yen, extending the bullish impulse formed last Friday, which acted as a catalyst for a fresh move to record highs not seen since January 2025. During the Asian session, USD/JPY is once again testing the 158.01 level for an upside breakout. Pressure on the yen is being amplified by rising geopolitical risks, primarily linked to the evolution of diplomatic relations between Japan and China. At the start of the year, Beijing introduced additional restrictions on exports of dual-use goods and strictly military products, affecting key components for electronics, sensors, shipping, and the aerospace sector. These measures could complicate the strategic plans of Prime Minister Sanae Takaichi’s government aimed at strengthening Japan’s defense capabilities. The situation is further exacerbated by persistent tensions around Taiwan and sharp statements from the Republican administration in the White House regarding strategic territories and economic interests in the Asia-Pacific region.
The EUR/USD pair is holding within a corrective trend near 1.1678. The euro remains in a neutral position even after last week’s macroeconomic data showed that the European economy is gradually emerging from the stagnation observed since early summer 2025, which had been driven by high uncertainty surrounding U.S. trade policy.
The USD/JPY pair is correcting within an upward trend near the 157.26 level amid weak Japanese macroeconomic data.
The euro-to-U.S. dollar exchange rate (EUR/USD) weakened on Monday, slipping below the 1.1700 level.
After an initial decline, the pound showed resilience on Monday, with the Pound-to-Euro (GBP/EUR) exchange rate reaching its best buying level in ten weeks, rising slightly above 1.1510 amid a weaker single currency across global markets.
The US dollar to Canadian dollar exchange rate (USD/CAD) appears to be losing momentum as investors refocus on Canada’s macroeconomic data.
During the first sessions of the new year, the USD/JPY pair has been trading within a narrow range of 157.00–156.25. Investors prefer to wait for clearer signals regarding the next steps of the US Federal Reserve and the Bank of Japan in monetary policy. For now, baseline expectations remain unchanged: the Japanese regulator is likely to continue tightening policy parameters, while the US central bank is expected to move toward interest rate cuts, possibly pausing in January.
United States. The U.S. dollar is losing ground against the yen, while showing mixed dynamics in pairs with the euro and the pound.
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.