Daily Market Report
10/08/2026
EUR/USD ranged in the high 1.11’s to the low 1.12’s overnight. The Euro (EUR) is trading flat at 1.1200 against the US Dollar (USD) on Thursday, as the rebound in oil prices and the ongoing tensions in bond markets keep EUR/USD buyers in check. Looking from a wider perspective, the pair maintains its broader bearish trend intact, on track for a 3.5% sell-off in a five-week losing streak.
The bond markets’ rout has set the Euro in the eye of the storm, as France’s borrowing costs soared to levels above those of the 2009 financial crisis. With the French government in a gridlock, the Governor of the Bank of France has felt compelled to come out and assure that the country does not need help from the European Central Bank, which has not precisely soothed investors.
The Oil price rally is only making things worse. On the one hand, it adds pressure on Eurozone Crude-importing economies, while, on the other, it spurs market expectations that central banks will have to pursue restrictive policies to combat inflation, ultimately contributing to higher global yields.
The GBP/USD pair struggles to gain any meaningful traction, trading near the 1.3200 mark through the Asian session on Thursday and within striking distance of the lowest level since late June, touched last week.
The US Dollar (USD) retains its bullish undertone near an 18-month high amid the Federal Reserve’s (Fed) hawkish outlook, elevated US bond yields and persistent geopolitical uncertainties. This, in turn, is seen as a key factor acting as a headwind for the GBP/USD pair, though bets for tighter monetary policy from the Bank of England (BoE) offer some support to the British Pound (GBP) and help limit deeper losses.
The recent range-bound price action witnessed over the past two weeks or so could be categorized as a bearish consolidation phase against the backdrop of the decline from the August swing high. The top end of the said range now coincides with the 100-period Simple Moving Average (SMA) on the 4-hour chart, suggesting that rallies are vulnerable while the broader structure leans lower.
The Bank of Japan (BoJ) Regional Economic Report, known as the Sakura report, maintains an unchanged economic assessment for 7 of 9 regions across Japan. Many regions said firms were passing on rising costs from the Middle East conflict, the weak Japanese Yen (JPY) as well as distribution and labor costs.
Source: FX Street