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02/06/2025

Forex Today: US Dollar weakens to start week as markets await PMI data

2 June 2025, 10:10

Here is what you need to know on Monday, June 2:

The US Dollar (USD) weakens against its major rivals on the first trading day of June. In the second half of the day, the US economic calendar will feature the ISM Manufacturing Purchasing Managers (PMI) data for May. Market participants will also pay close attention to comments from central bank officials.

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

The USD Index, which gauges the USD's performance against a basket of six major currencies, ended the previous week marginally higher. The data published by the US Bureau of Economic Analysis showed on Friday that the annual inflation in the United States (US), as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, declined to 2.1% in April from 2.3% in March.

Early Monday, the USD Index stays in negative territory slightly below 99.00. Meanwhile, US stock index futures were last seen losing between 0.5% and 0.7% on the day, reflecting a cautious market mood at the start of the week. Escalating geopolitical tensions on news of Ukraine carrying out a large scale drone attack against Russian military bombers in Siberia seem to be weighing on risk sentiment.

Japan’s Prime Minister Shigeru Ishiba reiterated early Monday that Japan will not back down in its request to reduce tariffs. On Thursday, Japan's Economy Minister Ryosei Akazawa is expected to hold discussions with US Treasury Secretary Scott Bessent. USD/JPY stays under bearish pressure early Monday and trades below 143.50.

EUR/USD gains traction in the European morning and trades near 1.1400. The European economic calendar will feature revisions to the Eurozone and Germany HCOB Manufacturing PMI data for May.

Following Friday's modest decline, GBP/USD turns north on Monday and trades comfortably above 1.3500. The Bank of England (BoE) will publish Mortgage Approvals data for April.

Gold benefits from the risk-averse market atmosphere and registers strong gains early Monday. XAU/USD was last seen trading slightly below $3,350, rising more than 1.5% on a daily basis.

The data from Switzerland showed on Monday that the Gross Domestic Product (GDP) expanded at an annual rate of 2% in the second quarter. This reading surpassed the market expectation of 1.5%. USD/CHF edges lower following the upbeat data and trades slightly below 0.8200.

Risk sentiment FAQs

What do the terms"risk-on" and "risk-off" mean when referring to sentiment in financial markets?

In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.

What are the key assets to track to understand risk sentiment dynamics?

Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.


Which currencies strengthen when sentiment is "risk-on"?

The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.

Which currencies strengthen when sentiment is "risk-off"?

The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.

HotForex is an award winning forex and commodities broker, providing trading services and facilities to both retail and institutional clients.

16/05/2025

Forex Today: US, Japan data gathers attention

15 May 2025, 21:57

The US Dollar resumed its downward trajectory on Thursday, weighed by another soft inflation print—this time from Producer Prices—and a mixed batch of US economic data. Meanwhile, doubts continue to build around the durability of the recently announced US–China trade agreement.

Here’s what to watch on Friday, May 16:

Sellers regained control and prompted the US Dollar Index (DXY) to resume its weekly downtrend, this time accompanied by declining US yields across the board. The day’s data slate includes Building Permits, Housing Starts, Import and Export Prices, the preliminary University of Michigan Consumer Sentiment index, and Net TIC Flows. Fed official Thomas Barkin is also scheduled to speak.

EUR/USD ended Thursday’s session barely changing from the previous day’s closing around 1.1180 after failing to sustain the earlier bull run to the 1.12430 zone. Focus now shifts to eurozone Inflation Rate, with the final print due on May 19.

GBP/USD rose strongly and reclaimed the area beyond the 1.3300 hurdle in response to auspicious results from UK fundamentals and the softer Greenback. The Inflation Rate release on May 21 will be the next key data on the UK calendar.

USD/JPY retreated for the third consecutive day, hitting weekly troughs around the 145.50 zone. Next on tap in Japan will be the flash Q1 GDP and Industrial Production. In addition, the BoJ's Nakamura is due to speak.

AUD/USD added to Wednesday’s downtick and flirted with the 0.6400 neighbourhood, where it seems to have met some decent contention. Market participants will look to the Reserve Bank of Australia’s (RBA) policy meeting on May 20 for direction.

WTI crude traded lower and approached the key $60.00 mark per barrel as speculation over a possible breakthrough in US–Iran nuclear negotiations weighed on prices and sentiment in the energy complex.

Gold rebounded to the area above the $3,200 mark per troy ounce, buoyed by the softer US Dollar and rising expectations of Fed easing later in the year. Silver prices followed suit, rebounding to the $32.50 zone per ounce after a brief drop the vicinity of $31.60 per ounce.

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04/06/2024

Forex Today: US data dominate the mood in the FX space

3 June 2024, 22:07

The loss of impetus in the US manufacturing sector sparked a deeper pullback in the Greenback and supported further the recovery of the risk-associated assets at the beginning of a week ruled by the ECB event and US Nonfarm Payrolls.

Here is what you need to know on Tuesday, June 4:

The USD Index (DXY) dropped markedly and flirted with three-week lows near the 104.00 neighbourhood. On June 4, Factory Orders take centre stage seconded by the JOLTs Job Openings and the RCM/TIPP Economic Optimism Index.

EUR/USD advanced for the third session in a row and challenged the key 1.0900 barrier amidst generalized Dollar weakness. The release of Germany’s labour market report and EMU’s Consumer Inflation Expectations will be at the centre of the debate on the domestic docket on June 4.

GBP/USD advanced to just pips away from the key 1.2800 hurdle, or multi-week highs, on Monday. The BRC Retail Sales Monitor is expected across the Channel on June 4.

The weaker Dollar and diminishing US yields prompted USD/JPY to recede to multi-session lows in the sub-156.00 region at the beginning of the week. In Japan, a JGB 10-year Auction is only due on June 4.

The increasing selling pressure in the Greenback motivated AUD/USD to advance to the proximity of the 0.6700 mark. On June 4, Business Inventories, Current Account and final Retail Sales are all due in Oz.

WTI prices receded for the third consecutive week and broke below the $77.00 mark per barrel on Monday, as traders digested the bearish tone from the OPEC+ meeting on Sunday.

Gold prices charted a strong advance to the $2,350 region on the back of the intense sell-off in the Dollar and declining US yields across the curve. By the same token, Silver followed suit and reversed three consecutive sessions of losses.

HotForex is an award winning forex and commodities broker, providing trading services and facilities to both retail and institutional clients.

29/05/2024

Forex Today: Fed rate cut bets dominate the scene

29 May 2024, 22:01

The Greenback extended its recovery and printed fresh multi-day highs amidst the persistent move higher in US yields and shrinking bets of a Fed rate cut in September.

Here is what you need to know on Thursday, May 30:

The USD Index (DXY) rose further and trespassed the key 105.00 barrier amidst multi-week tops in US yields. On May 30, another revision of the Q1 GDP Growth Rate is due, seconded by weekly Initial Jobless Claims, Goods Trade Balance, and Pending Home Sales. In addition, Fed’s Bostic, Williams, and Logan are due to speak.

EUR/USD traded well on the defensive and challenged the 1.0800 region despite the German flash CPI ticking higher in May.The EMU’s final Consumer Confidence, Economic and Industrial Sentiment and the Unemployment Rate will all be unveiled on May 30.

GBP/USD dropped to three-day lows and pierced the 1.2700 support on the back of the stronger Dollar. April’s Car Production will be the only release across the Channel on May 30.

Further gains in the Greenback and an extra advance in US yields prompted USD/JPY to climb to new highs around 157.70. In the Japanese calendar, the usual weekly Foreign Bond Investment figures are expected on May 30.

AUD/USD added to Tuesday’s pullback and put the 0.6600 contention zone to the test against the backdrop of further bearishness hurting the risk-associated assets. On May 30, Building Permits are due along with the speech by RBA’s Hunter.

The persevering march north in the Dollar prompted WTI prices to halt a three-session positive streak and return to the $79.00 region.

Gold prices succumbed to the Greenback’s sharp advance and the robust performance of US yields across the curve, revisiting once again the vicinity of $2,330 per troy ounce. Silver prices clung to the upper end of the range, receding marginally to the $32.00 zone per ounce.

HotForex is an award winning forex and commodities broker, providing trading services and facilities to both retail and institutional clients.

28/05/2024

Forex Today: Attention shifts to US PCE

28 May 2024, 22:14

The Greenback managed to regain some late traction and trimmed most of its daily losses amidst a decent bounce in US yields and diminishing expectations of a rate cut by the Fed in September.

Here is what you need to know on Wednesday, May 29:

The USD Index (DXY) rebounded from multi-day lows near 104.30 on the back of te strong comeback of US yields. On May 29, weekly Mortgage Applications are due seconded by the Fed’s Beige Book. In addition, Fed’s Williams is due to speak.

EUR/USD failed to sustain the early move to the vicinity of the 1.0900 region, eventually succumbing to the Dollar’s bounce. Germany’s Consumer Confidence tracked by GfK is expected on May 29 along with the flash Inflation Rate for the month of May.

GBP/USD retested the 1.2800 level for the first time since mid-March, although that move ran out of steam towards the end of the NA session. There are no data releases scheduled across the Channel on May 29.

The dollar’s late recovery and the decent bounce in US yields across the curve prompted USD/JPY to poke with multi-week tops beyond 157.00. IN Japan, the Consumer Confidence gauge will be released on May 29 seconded by the speech by BoJ Adachi.

AUD/USD ended Tuesday’s session with marginal losses after advancing to four-day highs near 0.6680. On May 29, the Westpac Leading Index is due along with the RBA’s Monthly CPI Indicator.

WTI prices rose further and surpassed the key $80.00 mark per barrel mainly on hopes that the OPEC+ would maintain its crude oil output cuts unchanged at the cartel’s meeting over the weekend.

Prices of Gold edged higher and broke above the $2,360 mark per troy ounce despite the bounce in the dollar and US yields, while prudence remained on the rise prior to the release of US PCE later in the week. Silver gathered extra pace and advanced for the third session in a row, this time surpassing the $32.00 mark per ounce.

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28/05/2024

Forex Today: The FX universe takes a breather

27 May 2024, 21:40

The Greenback came under extra selling pressure against the backdrop of marginal volatility in response to the US and UK holidays. Markets are expected to enter some consolidative phase ahead of the release of US PCE and EMU CPI, both due on Friday.

Here is what you need to know on Tuesday, May 28:

The USD Index (DXY) added to Friday’s pullback and revisited the 104.60-104.50 band on Monday. On May 28, the Conference Board’s Consumer Confidence takes centre stage, seconded by the FHFA’s House Price Index. In addition, Fed’s Mester, Kashkari and Cook are due to speak.

Further gains lifted EUR/USD to four-day highs around 1.0870 amidst a renewed selling bias in the US Dollar. Wholesale Prices in Germany are due on May 28 along with the ECB’s Schnabel speech.

GBP/USD accelerated its gains beyond the 1.2700 barrier and hit a new two-month tops following the weaker Greenback. The CBI Distributive Trades are expected on May 28.

Price action around USD/JPY remained flat near the 157.00 hurdle following a solid performance of JGB 10-year yields. There are no scheduled releases in “The Land of the Rising Sun” on May 28.

A solid session saw AUD/USD advance to three-day highs near 0.6660 amidst the softer Dollar and an improved tone in the commodity complex. Flash Retail Sales are next on tap in Oz on May 28.

Prices of WTI rose for the second session in a row, managing to reclaim the area above the $78.00 mark per barrel in response to the selling pressure hurting the greenback.

Gold prices edged higher and surpassed the $2,350 mark per troy ounce, adding to Friday’s small uptick. Silver followed suit and rose markedly more than 4% to surpass the $31.00 mark per ounce.

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09/10/2023

Forex Today: US data sustains Dollar strength, focus shifts to inflation

6 October 2023, 21:34

After the release of US labor data, the focus turns to inflation data and the FOMC minutes. These upcoming data points are expected to spur movements in the bond market and potentially challenge the dollar's strength.

Here is what you need to know for next week:

The US Dollar Index (DXY) continued its correction on Friday, despite the better-than-expected US employment report. The numbers triggered a rally in the Greenback, which was short-lived, suggesting some exhaustion of the rally. The DXY is set to end the week around 106.00, posting marginal losses and ending an 11-week positive streak. Although the trend remains upward, it has softened. Fundamentals still favor the Dollar, and the slide appears to be corrective in nature.

On Monday, the US market will be closed due to Columbus Day; it will also be a holiday in Canada.

The US will release wholesale inflation data on Wednesday. The Producer Price Index (PPI) is expected to rise by 0.4% in September. Later in the day, the Federal Reserve will release the minutes of its latest meeting, which will be closely watched.

Thursday will be a key day with the release of the US Consumer Price Index (CPI). The headline and core rates are expected to show a 0.3% monthly increase. A surprise with higher inflation would increase expectations of further tightening from the Federal Reserve and could lead to a stronger US Dollar and higher yields, potentially causing market concerns. Conversely, numbers below estimates could fuel risk appetite and weigh on the US Dollar. The weekly Jobless Claims report will also be closely watched, especially after the upbeat Nonfarm Payrolls.

Several Fed officials are scheduled to deliver remarks, including Vice Chair Jefferson and Logan on Monday, and Waller on Tuesday. The next FOMC decision is on November 1.

EUR/USD rose after falling for 11 consecutive weeks, gaining ground after the Nonfarm Payrolls release on Friday. The pair appears to be stabilizing, and a break above 1.0630 could strengthen the rebound. The European Central Bank (ECB) will release the minutes of its latest meeting on Thursday.

GBP/USD rose on Friday for the third day, approaching the 20-day Simple Moving Average (SMA) at 1.2260. The pair had its best week since early July. The UK's monthly GDP and Manufacturing Production data are due on Thursday.

USD/JPY remains near the critical area of 150.00, which is suspected of having triggered intervention from Japanese authorities to curb the yen's strength on Tuesday. The pair posted its highest weekly close in decades around 149.35 and remains supported by the divergence between US and Japanese bond yields.

Commodity-linked currencies were the worst performers during the week. Declines in crude oil prices, metals, and deteriorating market sentiment weighed on these currencies. However, they ended the week on a positive note, with a move that could continue into next week.

China will release trade data on Friday, which will be important for market sentiment and Antipodean currencies. The economic calendar for Australia and New Zealand is quiet for the week ahead.

AUD/USD finished the week slightly lower, hovering around 0.6390 but far from the monthly low it reached earlier. The pair returned to the previous range, and the recovery signals positive momentum for the Aussie. However, it needs to rise above 0.6500 to change the short-term outlook.

NZD/USD ended the week flat, slightly below 0.6000. It remains below the 20-day Simple Moving Average at 0.6050, an area that could be challenged next week.

Canadian data and the reversal in crude oil prices brought volatility to the Loonie. While the sharp decline in crude oil prices weighed on the currency, positive Canadian employment data boosted it. USD/CAD posted its highest weekly close since March, around 1.3660. The pair peaked at 1.3785 and pulled back sharply, increasing the risk of an extension to the downside.

Gold rebounded at the 200-week SMA and managed to stay above $1,800. On Friday, it staged a recovery, surging above $1,830. The trend is downward, but short-term momentum favors the yellow metal.



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04/10/2023

Forex Today: US Dollar stretches higher on surging bond yields ahead of key data

4 October 2023, 09:52

Here is what you need to know on Wednesday, October 4:

The US Dollar continues to outperform its rivals mid-week as US Treasury bond yields keep on climbing higher. The US Dollar Index holds at multi-month highs above 107.00 and the 10-year US yield closes in on 4.9% in the European morning. ADP private sector employment and ISM Services PMI data for September, alongside August Factory Orders, will be featured in the US economic docket in the second half of the day. Market participants will continue to keep a close eye on comments from central bankers as well.

The data from the US showed on Tuesday that the number of job openings on the last business day of August stood at 9.6 million. This reading came in much higher than the July's reading and the market expectation of 8.8 million, attracting hawkish Federal Reserve (Fed) bets. In turn, US T-bond yields gained traction, Wall Street's main indexes turned south and the USD held its strength in the American trading hours.


US Dollar price this week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Australian Dollar.

USD EUR GBP CAD AUD JPY NZD CHF
USD 0.99% 1.09% 1.01% 1.98% -0.23% 1.84% 0.75%
EUR -1.00% 0.08% 0.00% 1.01% -1.25% 0.85% -0.25%
GBP -1.10% -0.07% -0.08% 0.93% -1.34% 0.77% -0.33%
CAD -1.02% -0.01% 0.11% 0.97% -1.25% 0.83% -0.26%
AUD -2.02% -1.02% -0.94% -1.01% -2.28% -0.16% -1.29%
JPY 0.20% 1.23% 1.31% 1.25% 2.19% 2.06% 1.00%
NZD -1.86% -0.86% -0.77% -0.85% 0.16% -2.12% -1.11%
CHF -0.77% 0.24% 0.32% 0.25% 1.25% -1.01% 1.10%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).



Meanwhile, several Republicans in the House of Representatives sided with Democrats and ousted Speaker Kevin McCarthy with a 216-to-210 vote. Legislative activity in the House will pause until there is a new House Speaker. Republicans are set to meet on October 10 to discuss McCarthy's replacement. Markets remain risk-averse following this development with another government shutdown deadline coming in on November 17. Reflecting the sour mood, US stock index futures were last seen losing between 0.5% and 0.8%.

During the Asian trading hours on Wednesday, the Reserve Bank of New Zealand (RBNZ) announced that if left the policy rate unchanged at 5.5% as expected. “Committee agreed that interest rates may need to remain at a restrictive level for a more sustained period of time," the RBNZ said in its policy statement. NZD/USD came under bearish pressure and dropped below 0.5900.

After rising a few pips above 105.00 in the American session, USD/JPY fell sharply and lost more than 200 pips in a matter of minutes. This price action revived market chatter about a Bank of Japan intervention in the foreign exchange market. Japanese Finance Minister Shunichi Suzuki, however, said that he doesn’t want to “comment on whether Japan intervened in the FX market.” USD/JPY climbed back above 149.00 and stabilized there on Wednesday.

EUR/USD registered small losses on Tuesday but failed to stage a correction on Wednesday. At the time of press, the pair was trading within a touching distance of 1.0450. European Central Bank President Christine Lagarde will speak at the 2023 ECB Conference on Monetary Policy later in the day. Additionally, Eurostat will release August Retail Sales data.

GBP/USD rose a few pips above 1.2100 during the European session on Tuesday but lost its traction in the second half of the day. Early Wednesday, the pair trades modestly lower while holding slightly above 1.2050.

Pressured by surging US yields, Gold price closed the seventh consecutive day in negative territory on Tuesday. In the European morning, XAU/USD stays on the back foot below $1,820.

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03/10/2023

Forex Today: US Dollar shows its strength, RBA to keep rates unchanged

2 October 2023, 23:52

The key event in the Asian session will be the Reserve Bank of Australia meeting. Later in the day, Switzerland will report consumer inflation, and in the US, the JOLTS Job Openings data will be released.

Here is what you need to know on Tuesday, October 3:

The US Dollar opened the week on a strong note, resuming the rally that started on Friday. The US Dollar Index rose above 107.00, posting its highest daily close since November. Higher US yields, cautious market sentiment, and positive US data continue to support the Greenback's rally.

The US 10-year yield reached 4.70% for the first time since 2007. US data came in above expectations, with the ISM Manufacturing PMI at 49, surpassing the market consensus of 47.7. On Tuesday, the JOLTS Job Openings report is due. Later in the week, more US employment data will be released with the ADP report and the Nonfarm Payrolls.

Analysts at Wells Fargo on US data:

Manufacturing activity contracted at the slowest pace in nearly a year according to the September ISM. Recent data signal some relief in the sector, while higher oil prices point to potential upside risk ahead.

EUR/USD broke below 1.0500, reaching fresh year-to-date lows. The pair remains under pressure after sustaining the bearish trend. A potential support level lies around 1.0460. The strong US Dollar also weighed down GBP/USD, which broke below 1.2100, hitting three-month lows.

USD/JPY continues to gradually approach the 150.00 level amid higher yields. A break above 150.00 could trigger volatility and speculations about intervention from Japanese authorities.

AUD/USD extended its reversal from 0.6500 and dropped to 0.6360. The Reserve Bank of Australia (RBA) will announce its monetary policy decision on Tuesday, with no change expected. This will be the first meeting with Michele Bullock as governor.

The kiwi fell versus the US Dollar; however, it outperformed the AUD and CAD. NZD/USD pulled back to 0.5950 after failing to hold above 0.6000 but remained above the 20-day Simple Moving Average (SMA). The Reserve Bank of New Zealand (RBNZ) will hold its monetary policy meeting on Wednesday.

USD/CAD is back at September highs, slightly below the 1.3700 area, which is a key resistance level. A break higher would clear the way for more gains. Canada will report employment data on Friday.

Metals had another terrible day, with Gold falling more than $20 to $1,828, the lowest level since March, and Silver collapsing by more than 5% to $21.00. XAG/USD lost more than 10% from Friday's high.




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25/09/2023

Forex Today: Dollar holds firm, focus turns to inflation data

22 September 2023, 20:59

Next week, markets will continue to digest the outcomes of recent central bank meetings. Additionally, market participants will closely monitor the release of economic data, with a particular focus on inflation figures from the Eurozone and the US Core Personal Consumption Expenditure (PCE) index.

Here is what you need to know for next week:

The US Dollar Index recorded its tenth consecutive weekly gain, ending around 105.50. The DXY continues to trend upward, supported by US economic data and the recent Federal Reserve (Fed) meeting.

During the FOMC meeting, interest rates were left unchanged in the range of 5.25% to 5.50%. In terms of macroeconomic projections, most members still see the possibility of further rate hikes later this year. Economic data in the US showed mixed results, with housing data coming in weaker while Jobless Claims dropped to the lowest level since January.

Next week, the key focus in the US will be on Friday's release of the Fed's preferred measure of consumer inflation, the Core Personal Consumption Expenditure (PCE) Price Index. It is expected to show a decline from an annual rate of 4.2% to 3.9%. The third estimate of Q2 GDP will be released on Thursday.

The Japanese yen was among the worst-performing major currencies. The Bank of Japan (BoJ) left its monetary policy unchanged at the September meeting, with Governor Ueda stating that any change would only occur when the achievement of 2% inflation is in sight. Japan will release several economic indicators next Friday, including the Tokyo Consumer Price Index, Unemployment Rate, Industrial Production, Retail Sales, Consumer Confidence, and household spending for August. However, the focus will remain on the potential intervention from Japanese authorities to curb the yen's weakness. USD/JPY reached its highest level in decades above 148.00, supported by higher US yields and the BoJ's policy stance.

The British Pound lagged following the Bank of England's decision to keep interest rates unchanged after a slowdown in inflation in August. Next Friday, the UK will release a new estimate of Q2 GDP growth. GBP/USD declined for the third consecutive week, reaching its lowest level since March at 1.2232, before closing around 1.2260. The pair has strong support around 1.2200. EUR/GBP surged from below 0.8600 to 0.8700, marking its biggest weekly gains since February.

EUR/USD finished the week near 1.0650 after hitting fresh monthly lows at 1.0614. The Eurozone PMI provided some relief with a rebound on Friday. Inflation data will be crucial next week, with Spain and Germany kicking off with CPI on Thursday, followed by France, Italy, and the Eurozone on Friday.

The Swiss franc lost ground against major currencies after the Swiss National Bank (SNB) left its key interest rate unchanged at 1.75%. The Swissy was also influenced by the dovish stance of the European Central Bank. USD/CHF accelerated to the upside, breaking decisively above 0.9000 to its highest level since June. EUR/CHF surged from around 0.9550 to 0.9660.

AUD/USD continued to trade within a range between 0.6500 and 0.6350. Australia will release the Monthly Consumer Price Index on Wednesday, with the annual rate expected to rebound from 4.9% in July to 5.2% in August. Retail sales data will be released on Thursday.

The New Zealand Dollar was the best-performing major currency during the week. NZD/USD gained almost 1%, rising to 0.5975 but was unable to reclaim the 0.6000 level.

On a volatile week for metals market, Gold ended the week flat around $1,925 after recovering ground on Friday. Silver remained above $23.00 and closed around $23.50.

- from HFM

HFM (Formerly known as HotForex) is a multi-asset regulated, licensed global broker, providing trading services & facilities to both retail & institutional clients.