Dollar Slips and Oil Falls as Markets Reprice Fed and Iran Risks
United States. The US dollar is strengthening against the Japanese yen today while posting moderate losses against the euro and the British pound.
United States. The US dollar is strengthening against the Japanese yen today while posting moderate losses against the euro and the British pound.
EUR/USD. The euro is gaining ground against the US dollar, with the pair heading into the end of the week with solid momentum. EUR/USD is testing the 1.1650 level to the upside as traders wait for fresh catalysts to drive the next move.
The Australian dollar is trading mixed against the U.S. dollar, with the AUD/USD pair on track to finish the week with moderate gains. On Thursday, the pair briefly refreshed its October 30 local highs near 0.6580, but the bullish momentum faded toward the end of the session as sellers regained control.
During the morning session, the USD/TRY pair is testing the 42.3100 level on a potential breakout to the upside. Since March, the US dollar has barely seen any meaningful pullbacks, despite weakening against several major currencies.
United States. The US dollar is losing ground against the euro and the pound, while showing mixed performance against the yen.
The EUR/USD pair has been rising for the second week in a row and is currently attempting to hold above 1.1597 (Murray level [6/8]), supported by the middle line of the Bollinger Bands.
The USDX index is showing mixed performance during the morning session, holding near the 99.40 mark. Market activity remains muted as traders wait for the release of U.S. macroeconomic data following the end of the 43-day government shutdown.
During the morning session, WTI Crude Oil prices are consolidating near the October 22 low at 58.30. Investors are waiting for the U.S. government shutdown to end and reacting to the updated OPEC forecasts released yesterday, which pushed the asset down more than 3.0%. While earlier expectations pointed to a supply deficit in 2026, OPEC now anticipates that supply and demand will reach balance thanks to gradually rising production from both the cartel and non-OPEC countries, particularly the U.S., while demand estimates for 2025–2026 remain unchanged.
The U.S. dollar continues its strong upward move in the USD/JPY pair, testing the 154.80 level for a breakout during the Asian session. The yen is once again renewing nine-month lows, remaining under pressure following the release of October’s producer inflation data: on a yearly basis the indicator slowed from 2.8% to 2.7% (analysts expected 2.5%), while the monthly reading eased from 0.5% to 0.4%.
EUR/USD. The euro is posting moderate gains in the EUR/USD pair, updating the local highs from October 30. The instrument is supported by expectations that the U.S. government shutdown will finally end: federal agencies were closed for 43 days, and only at the beginning of this week did the Senate manage to approve a bill on temporary funding through the end of January 2026. The bill then passed the House of Representatives and was ultimately signed by President Donald Trump.
The USD/JPY pair is consolidating in a sideways trend around 154.65 amid uncertainty regarding the Bank of Japan’s future monetary policy.
During the morning session, the EUR/USD pair trades in a corrective trend around 1.1571. EU internal data remains too weak to shift market sentiment significantly, while the U.S. dollar’s decline is not strong enough to reverse the broader trend.
A pause in the Bank of England’s dovish cycle, which left the interest rate unchanged at 4.00%, may weaken the national currency. The U.S. dollar, meanwhile, will remain highly dependent on the Federal Reserve’s monetary policy through the end of the year: if the expected December rate cut takes place, the greenback could receive short-term support amid the government’s reopening.
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