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.
GBP/USD. The pound is trading higher on the Forex market in the GBP/USD pair during the morning session, recovering losses from the middle of last week. The instrument is testing 1.3465 for an upside breakout as investors discuss a potential U.S. government shutdown after lawmakers failed to agree on budget details.
The US dollar is weakening against the Japanese yen in Asian trading, extending its bearish streak and updating local lows from September 24. Market focus remains on business activity data.
During the morning session, the U.S. Dow Jones index is showing a slight decline, developing mixed dynamics in the ultra-short term while holding near the highs (46095.0) updated last week.
EUR/USD. The euro is strengthening against the U.S. dollar on Forex during the morning session, extending a short-term bullish trend. The pair is testing the 1.1760 mark for a potential breakout to the upside as traders await September inflation data from the eurozone, scheduled for release at 11:00 (GMT+2).
The U.S. dollar is losing ground on Forex today against major peers — the euro, pound, and yen.
This week, the GBP/USD pair resumed its upward momentum, regaining earlier losses and trading around 1.3440. The pound found moderate support after the release of Q2 UK GDP data, which showed growth slowing from 0.7% to 0.3% on a quarterly basis, while annual growth accelerated to 1.4%, beating forecasts of 1.2%. Overall, the UK economy delivered the strongest growth among the G7 in the first half of the year, though analysts note much of this was driven by temporary factors, such as a surge in exports ahead of U.S. import tariffs introduced by President Donald Trump. Looking ahead, economists warn that Q3 and Q4 could be weaker due to mounting global trade tensions and new taxes—potentially in the tens of billions of pounds—expected in the autumn budget.
The euro is showing mixed performance against the U.S. dollar during the Asian session, consolidating near 1.1720. Investors are focused on German retail sales data, which dropped from 2.9% to 1.8% year-over-year in August and from –0.5% to –0.2% month-over-month, missing expectations of 0.6% growth.
The U.S. dollar is weakening against the euro, pound, and yen.
Last week, Brent Crude Oil prices renewed two-month highs near 69.80, but today a correction has started under the pressure of several negative factors.
The USD/JPY pair is actively declining, holding around 148.68 after the release of Japan’s macroeconomic data last Friday. In September, Tokyo’s core consumer price index excluding fresh food came in at 2.5% YoY, below the median market forecast of 2.8%, while the indicator excluding both fresh food and fuel eased from 3.0% to 2.5%. The core reading without fresh food slowed from 7.4% to 6.9%, which may influence the Bank of Japan’s monetary policy decision at its October 29–30 meeting.
The British pound is showing modest gains against the U.S. dollar in Friday’s morning session, recovering after yesterday’s sharp decline that pushed the pair to fresh lows from September 3. GBP/USD is testing 1.3355 to the upside as investors await the U.S. Personal Consumption Expenditures (PCE) inflation report at 14:30 (GMT+2), a key gauge for the Federal Reserve in assessing inflationary pressures.
The EUR/USD pair is sliding toward 1.1670 as the U.S. dollar strengthens following the Federal Reserve’s first rate cut in eight months—by 25 basis points to 4.25%.
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