USD in the spotlight: latest news

The US dollar is showing signs of strength, which is putting pressure on both the euro and the British pound. Temporary support levels may lead to brief recoveries in these currencies.

Senior Technical Strategist Michael Boutros outlines key levels to watch for the US Dollar, EUR/USD, USD/CAD, gold, and equities as the week and month begin.

The EUR/USD pair maintains a bearish trend as the week begins, approaching the critical support level of 1.1500, which also marks a three-month low.

The AUD/USD exchange rate has pulled back from recent three-week highs of over 0.66, which followed last week's inflation data. It is currently trading near lower levels, but UBS has raised its forecast for the Australian dollar to 0.68 by the end of 2025.

The GBP/USD exchange rate declined on Monday due to mixed signals from central banks, even as global markets maintained an overall positive outlook.

The US dollar is gaining strength as signals from the Federal Reserve show divergence and economic data becomes sparse. The DXY index is approaching the 200-day moving average, while traders remain cautious about the potential for a rate cut in December.

The ongoing US government shutdown is expected to create volatility in the US dollar pairs this week, particularly influencing the EUR/USD currency pair amid private sector data releases.

The gold price closed the week at $4,002 per ounce, experiencing a decline of 0.94% on Friday. This drop followed a period of volatility during which the price briefly fell below $3,950. UBS analysts predict that this pullback is temporary, with a target price of $4,200 anticipated for 2025.

The USD/JPY pair is currently trading around 154.00, marking its highest level since January. This surge follows the Federal Reserve's decision to maintain a hawkish stance without indicating any imminent rate cuts, while the Bank of Japan holds its interest rate at 0.5%.

The Australian dollar experienced a rise following strong inflation figures that diminished expectations for a rate cut by the Reserve Bank of Australia (RBA). Traders are now anticipating the upcoming US ISM and ADP data to determine the next direction for the AUD/USD currency pair.

The South African rand has regained its momentum following a brief decline, bolstered by steady policy signals, improved trade prospects, and a favorable global environment. Analysts predict that the USD/ZAR exchange rate is likely to decline further, potentially reaching R17.

The USD/CAD exchange rate has risen above 1.40, driven by increasing trade tensions and the Federal Reserve's hawkish stance. Analysts suggest that this upward trend may lead the pair towards levels between 1.4250 and 1.45. Any pullbacks in the currency pair are expected to attract dip buyers.

The USD/JPY exchange rate remains above 154 as uncertainty surrounding the Bank of Japan's interest rate decisions and the Federal Reserve's aggressive stance contribute to the yen's weakness. Market participants are increasingly concerned about the potential for intervention, especially with important U.S. economic data on the horizon.

Danske Bank has issued a forecast for the Euro to Dollar exchange rate, stating that it is "tactically bearish" in the short term but "strategically bullish" in the long run.

The EUR/USD exchange rate is currently around 1.1607, following the Federal Reserve's reduction of the likelihood of a December rate cut from 90% to 63%. This shift has led to an increase in Treasury yields, which now stand at 4.86%. Danske Bank has issued a warning indicating a tactical bearish outlook for the euro.

The weekly forecast for GBP/USD indicates a continued bearish trend, with the pair closing at 1.3140. The British pound is under pressure due to ongoing concerns regarding the UK economy and cautious signals from the Federal Reserve.

The EUR/USD pair has fallen below a critical support level due to the strengthening of the US dollar driven by Federal Reserve policies. Analysts anticipate continued downward movement, with 1.14 being identified as the next significant target for traders.

Gold prices remain steady near the $4,000 mark as traders prepare for important US economic data. This weekly forecast analyzes signals from the Federal Reserve, upcoming economic events, and potential market breakouts.

The GBP/USD exchange rate dropped to 1.3097, marking its lowest point since April. This decline was influenced by a hawkish stance from the Federal Reserve, ongoing fiscal challenges in the UK, and increasing U.S. yields.

The USD/JPY exchange rate is influenced by rising U.S. yields following Federal Reserve Chair Jerome Powell's indication that rate cuts are not assured. This has strengthened the dollar and focused attention on upcoming U.S. data releases.

Rabobank has raised its six-month forecast for the Australian dollar to 0.67 against the US dollar. The currency has strengthened significantly in the G10, with a 1.70% increase against the Swiss franc and a 1.68% rise versus the British pound.

The United States and China have reached consensus on several important aspects of a potential trade agreement, which helps to alleviate market concerns about a possible escalation into a new cold war.

The USD/JPY exchange rate is influenced by U.S. yields following Jerome Powell's indication that rate cuts are not assured. This stance has strengthened the dollar and shifted focus to upcoming U.S. economic data.

The euro has fallen to 1.1523, marking its lowest level in three months, following a hawkish stance from the Federal Reserve that has strengthened the US dollar. This drop has widened the yield gap between the euro and the dollar.

The exchange rate for the US Dollar to Canadian Dollar (USD/CAD) concluded the week at 1.4011, maintaining its position above the significant 1.40 mark due to stronger US economic indicators.