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Daily Market Report 07/27/2026 EUR/USD ranged in the high 1.13s to the low 1.14s overnight. EUR/USD holds sizeable gains near the 1.1400 mark in the European session on Monday. The intraday strength is sponsored by a broadly weaker US Dollar, weighed down by renewed optimism over a diplomatic resolution to end a five-month-old US-Iran war. Momentum indicators together suggest waning bullish momentum and reinforce the downside bias while the EUR/USD pair remains capped beneath the 200-period SMA. This, in turn, backs the case for an eventual break below the 1.1400 round figure and a further decline towards retesting the year-to-date low, around the 1.1325 region, touched on June 24. Money markets are currently pricing in roughly a 35.8% chance of a Fed rate hike this month, alongside an 82.1% probability of at least a quarter-point hike in September. GBP/USD builds on Friday’s modest bounce from a three-week low and gains strong follow-through positive traction at the start of a new week on Monday. This marks the second straight day of gains, with the major trading near 1.3350 in European trading amid a pause in the Middle East conflict and a broadly weaker US Dollar. Traders brace for the Fed and BoE policy announcements later in the week. Analysts at Scotiabank note that policy expectations remain firmly anchored ahead of next week’s BoE decision, with “markets … expecting no policy change at the next MPC rate decision, where the Bank Rate is expected to be held at 3.75%.” This steady policy outlook, they suggest, continues to frame near-term trading conditions for the Pound against the US Dollar as investors look toward upcoming UK data for further direction. The Japanese Yen (JPY) pares recent losses against the US Dollar (USD) on Monday, favored by a relief rally, as the US and Iran halted their hostilities, opening the door for further negotiations. The USD/JPY pair has pulled back from fresh 40-year highs right below 164.00, but it remains contained at the 163.50 area, keeping the broader bullish trend intact. Bears, however, remain contained above previous highs, in the mid-ranges of the 163.00s, with key support at the confluence of the mentioned trendline and July 6 and 8 highs in the 162.70-162.90 area. A confirmation below these levels puts sellers in control and adds pressure towards the July 17 and 20 lows at the 162.15 area. Source: FX Street

Daily Market Report 07/24/2026 EUR/USD ranged in the high 1.13s to the low 1.14s overnight. EUR/USD is holding gains near 1.1400 in European trading on Friday. The Euro draws support from an unexpected increase in the German and Eurozone business PMI readings for July. However, further upside appears limited by escalating conflicts in the Middle East, despite the ECB’s hawkish hold decision. The US PMI data are next in focus. Momentum indicators together suggest waning bullish momentum and reinforce the downside bias while the EUR/USD pair remains capped beneath the 200-period SMA. This, in turn, backs the case for an eventual break below the 1.1400 round figure and a further decline towards retesting the year-to-date low, around the 1.1325 region, touched on June 24. Following Thursday’s sharp decline, GBP/USD clings to small gains above 1.3300 in the European session Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair’s upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US economic calendar will feature preliminary July PMI data later in the day. GBP/USD trades at 1.3378. The pair broke the downtrend resistance line from May highs but remains capped below the 200-day simple moving average (SMA) at 1.3397. Momentum indicators in the daily chart are neutral-to-bullish with the Relative Strength Index (RSI) hovering just above 50 and the Moving Average Convergence Divergence (MACD) in positive territory. USD/JPY is consolidating the previous day’s strong move higher to a fresh 40-year high, awaiting a breakout through the 164.00 mark on Friday. The pair is drawing support from Japanese verbal intervention and a pickup in Japan’s headline National CPI inflation amid a retreat in the US Dollar and Oil prices. All eyes remain on looming Japanese FX intervention and Mideast headlines. USD/JPY trades at 162.36, holding a modest bullish bias as it consolidates near the multi-decade high of 162.84. The pair trades close to the 20-period Exponential Moving Average (EMA) at 162.31, reflecting a sideways trend. Source: FX Street

Daily Market Report 07/23/2026 EUR/USD ranged in the low 1.14s overnight. EUR/USD holds its upbeat momentum for the second consecutive day, above 1.1400, in the European session on Thursday. The pair stays supported ahead of the European Central Bank’s interest rate decision, with any hints on further rate hikes to be closely eyed. Momentum indicators together suggest waning bullish momentum and reinforce the downside bias while the EUR/USD pair remains capped beneath the 200-period SMA. This, in turn, backs the case for an eventual break below the 1.1400 round figure and a further decline towards retesting the year-to-date low, around the 1.1325 region, touched on June 24. GBP/USD stalls its rebound and stays below 1.3400 in the European trading hours on Thursday. The pair’s upside remains capped by a modest US Dollar bounce and cooler-than-expected UK inflation data amid escalating Middle East tensions. Traders anticipate the Bank of England (BoE) to keep its benchmark interest rate at 3.75% next week as it continues to assess the impact of the Middle East conflict. Financial markets were pricing in one or possibly two quarter-point interest rate hikes by the end of 2026, little changed from Tuesday, according to Reuters. The USD/JPY pair ticks lower during the Asian session on Thursday as bulls opt to move to the sidelines amid speculations that Japanese authorities will step in to prop up the domestic currency. Nevertheless, spot prices remain close to a four-decade high, touched on Tuesday, and currently trade just above the 163.00 mark. USD/JPY trades at 162.36, holding a modest bullish bias as it consolidates near the multi-decade high of 162.84. The pair trades close to the 20-period Exponential Moving Average (EMA) at 162.31, reflecting a sideways trend. Price, which sits just under the multi-decade high at 162.84, while a mid-50s Relative Strength Index (RSI) at 53.83 suggests steady but not overextended buying pressure. Source: FX Street

Daily Market Report 07/22/2026 EUR/USD ranged in the high 1.3s to the low 1.14s overnight. EUR/USD holds positive ground above 1.1400 in European trading on Wednesday, helped by hawkish ECB expectations and a broad US Dollar retreat. However, persisting Middle East tensions and surging Oil prices keep the pair’s upside elusive. Indicators together suggest waning bullish momentum and reinforce the downside bias while the EUR/USD pair remains capped beneath the 200-period SMA. This, in turn, backs the case for an eventual break below the 1.1400 round figure and a further decline towards retesting the year-to-date low, around the 1.1325 region, touched on June 24. GBP/USD erases recovery gains and slips toward 1.3350 in the European session on Wednesday. The UK annual Consumer Price Index (CPI) inflation cooled to 2.6% in June against the market forecast of 2.7%, tempering the British Pound’s rebound from weekly troughs. Traders also assess the ongoing Mideast tensions amid a pause in the US Dollar uptrend. Traders are still pricing in the possibility of at least one interest rate hike by the US central bank amid concerns over energy-driven inflation. Against the backdrop of the closure of the Strait of Hormuz, Yemen’s Iran-aligned Houthis declared a naval blockade against Saudi Arabia. This, in turn, pushed crude oil prices to a fresh high since June 12, fueling inflation fears. Traders also seem reluctant to place aggressive bullish bets on the British Pound (GBP) and opt to wait for the release of the latest UK consumer inflation figures for more cues about the Bank of England’s (BoE) near-term policy path. USD/JPY sits at 40-year highs above 163.00 in the Asian session on Wednesday, with gains capped amid speculation that authorities will step in to prop up the Japanese Yen. However, the wide US-Japan rate gap and economic risks stemming from energy supply disruptions in the Middle East might cap any rebound in the Japanese Yen. Trades at 162.36, holding a modest bullish bias as it consolidates near the multi-decade high of 162.84. The pair trades close to the 20-period Exponential Moving Average (EMA) at 162.31, reflecting a sideways trend. The price, which sits just under the multi-decade high at 162.84, while a mid-50s Relative Strength Index (RSI) at 53.83 suggests steady but not overextended buying pressure. Source: FX Street

Daily Market Report 07/21/2026 EUR/USD ranged in the low 1.14s. EUR/USD is keeping its range above 1.1400 in Tuesday’s European session, as the US Dollar (USD) retreats following Monday’s rebound. Nevertheless, the uncertainty around the US-Iran conflict limits the pair’s upside. Meanwhile, the Euro (EUR) pays little heed to the strong German sentiment data, as traders await Thursday’s European Central Bank policy announcements, which could drive the Euro’s near-term valuation. Momentum indicators together suggest waning bullish momentum and reinforce the downside bias while the EUR/USD pair remains capped beneath the 200-period SMA. This, in turn, backs the case for an eventual break below the 1.1400 round figure and a further decline towards retesting the year-to-date low, around the 1.1325 region, touched on June 24. Energy-driven inflation fears bolster US Federal Reserve (Fed) rate hike bets and support the US Dollar (USD) amid escalating US-Iran tensions. This could act as a headwind for the EUR/USD pair, warranting caution before confirming that the recent pullback from a four-week high, touched last Wednesday, has run its course. GBP/USD trades at 1.3378. The pair broke the downtrend resistance line from May highs but remains capped below the 200-day simple moving average (SMA) at 1.3397. Momentum indicators in the daily chart are neutral-to-bullish with the Relative Strength Index (RSI) hovering just above 50 and the Moving Average Convergence Divergence (MACD) in positive territory. The mentioned 200-day SMA around 1.3397, however, is likely to be a tough nut to crack. If that level is broken, the June 15 and July 10 high, near 1.3455, will be targeted. On the downside, the floor of the last two weeks’ trading range, at 1.3330, is likely to challenge bears. Further down, the broken trendline, now at 1.3290, and the June 22 and 30 highs around 1.3270 emerge as the next targets. The Japanese Yen keeps drifting lower on Tuesday, unfazed by the mild US Dollar’s weakness. The USD/JPY pair has reached session highs at 162.70 during the European trading session, less than 15 pips below the 40-year high of 162.84, which is seen as the new line in the sand for Tokyo intervention. The US Dollar is showing a moderately offered tone on Tuesday as investors cling to optimism amid reports that US and Iranian authorities are reviewing a peace proposal submitted by mediators that might avoid the conflict escalating out of control. Source: FX Street