The US dollar strengthened against the euro, sterling and yen ahead of Kevin Warsh’s Jackson Hole speech on August 28. The Australian dollar outperformed its major peers, while oil slipped as traders weighed Washington’s shift towards economic pressure on Iran.
The British pound has ended another tumultuous week against the US dollar, battered by pronounced volatility and a decisive pullback from four-year highs at $1.3789. A convergence of global macro risks—most notably escalating trade wars, deteriorating UK economic data, and the strengthening of the dollar as a preferred safe-haven asset—has driven GBP/USD below critical support levels, intensifying market anxiety.
The euro-dollar pair ended last week under renewed pressure, slipping below the 1.1700 mark and retreating further from the July highs near 1.1830. This pullback reflects the combined influence of escalating US trade policy, Federal Reserve uncertainty, mixed Eurozone macro data, and heightened caution among global investors.
The USD/JPY pair is consolidating its upward trajectory, trading near 146.86 as the market digests the ongoing tariff uncertainty from the US administration. Despite President Donald Trump’s decision to postpone the final tariff negotiation deadline from July 9 to August 1, the probability of a tariff hike from 10.0% to 25.0% on Japanese goods remains the central scenario. This has contributed to the neutral tone in yen trading, as investors await concrete outcomes from Washington-Tokyo negotiations.
Forex EUR/USD: The euro is under moderate selling pressure, retreating to the 1.1680 zone during the Asian session as the week winds down. Traders are digesting a fresh batch of inflation data out of Germany—the Eurozone’s economic engine. As expected, the consumer price index dropped from 0.1% to 0.0% month-on-month, and annual inflation slowed to 2.0%.
The EUR/USD pair is trading within a long-term upward channel, but this week has seen a correction from yearly highs, with the rate stabilizing around 1.1719 (Murray [4/8]). Market equilibrium persists as opposing forces shape the near-term forex forecast.
Forex analytics indicate the USD/JPY pair is experiencing moderate pressure, sliding from highs reached in late June and stabilizing near 146.27 in Asian trading. The underlying market backdrop remains little changed, but the currency forecast is dominated by tariff headlines and speculation around monetary policy direction from the Bank of Japan.
Forex EUR/USD. On the forex market, major currency pairs show mixed performance, while the euro remains rangebound against the dollar near 1.1736 during the Asian session.
On July 9, 2025, the US dollar continues to strengthen against the euro, with mixed performance versus the yen and British pound. The forex market remains highly reactive to trade policy headlines and global inflation data, as investors digest the latest signals from Washington and central banks worldwide.
Forex analytics for USD/CHF shows the pair trading in a corrective downtrend near 0.7971, as the Swiss franc continues to strengthen against major global currencies. Despite several attempts by the Swiss National Bank (SNB) to limit the rapid appreciation, the USD/CHF forecast remains bearish due to persistent geopolitical risks and the looming threat of a 31.0% U.S. tariff on Swiss exports—far higher than the potential 20.0% duties imposed on European products. According to leading forex analysts, the central bank’s shift to a neutral policy rate of 0.00% offered only short-term relief, and many now expect the SNB to move rates back into negative territory if the franc remains overvalued.
The USD/JPY pair is trending upward, currently trading around 147.06, as the market absorbs ongoing volatility in the US dollar and a continued bearish outlook for the Japanese yen. Despite President Donald Trump's decision to postpone new US tariffs on Japanese exports until August 1, the likelihood of a 25% levy remains high, with additional risks posed by a potential 50% tariff on steel, aluminum, and possibly copper. Although Japan's Prime Minister Shigeru Ishiba has reiterated intentions to keep talks open with Washington, consensus appears elusive, especially with the approaching deadline
The British pound continues to trade under pressure, with GBP/USD extending its bearish momentum from earlier in the week. The pair is currently testing the 1.3580 level as market participants prepare for the release of the June Bank of England (BoE) meeting minutes and a report from the Financial Policy Committee at 12:30 (GMT+2). These releases are highly anticipated, as investors look for new signals regarding the timing of future rate cuts—especially with expectations that the Federal Reserve could also adjust its policy in September.
The euro continues to trade under pressure, hovering near 1.1726 during the Asian session as traders brace for fresh market catalysts. Focus remains squarely on transatlantic trade policy after a new delay in the U.S. tariff timeline.
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