European Open

The incoming US inflation report and FOMC meeting are highly anticipated events, as they can shape expectations for Fed policy beyond 2026. Volatility is expected, so we look at key levels for EUR/USD and gold ahead of these events.

Today's BOC rate decision and an ISM report for the US places USD/CAD on volatility alert, alongside USD/JPY.

The US dollar continued to weaken ahead of today's US CPI report, helping EUR/USD and AUD/USD move towards key resistance levels. Yet traders will require a soft set of inflation figures for the pairs to stand any chance of breaking resistance.

The big question for today is if the BOE will satisfy bearish market positioning with enough dovish talk to prevent shorts from covering, and inadvertently sending GBP/USD higher.

GBP/USD could extend its losses despite the US dollar 'rebound' already losing steam, whilst gold's base looks set for a bullish breakout and USD/JPY might achieve another leg higher before it tops. In my opinion, at least.

The US dollar has rallied on anticipation of a more hawkish Fed ahead of today's meeting. So we take a look at key levels for EUR/USD and USD/JPY.

The US dollar rally has stalled, and the longer is fails to extends its gains the greater the odds of a pullback. For today, flash PMIs have placed GBP/USD and EUR/USD into focus.

The US dollar has dominated sentiment for markets this past week, but with signs of momentum waning there may be hope for a rebound on EUR/USD and DAX - even if only minor.

Implied volatility levels for gold, USD/JPY and EUR/USD are elevated heading into this month’s FOMC meeting, where traders are hoping for clues on future Fed policy.

The 1-hour chart for EUR/USD is a sight for sore eyes. It lacks a defined trend and has seen bursts of volatility in both directions before reverting to the centre of its sideways chopfest. But with key events within sight, we may be able to get a breakout or at least a clearer picture.

Price action on the US dollar remains choppy, but the bias remains for a run for 104. And that could weigh on gold as bears eye a run towards $2000.

S&P global release their flash PMI reports for the major regions today. And with PMI reports from Europe and US, it places EUR/USD onto trader's radars.

The US dollar and yen were the weakest FX majors during the Asian session, following reports of China stimulus and no change in policy from the BOJ. GBP/JPY has probed a key resistance level and crude oil shows the potential to extend yesterday's gains.

Implied volatility for USD/JPY over the next 24 hours is more than twice its usual level ahead of tomorrow’s BOJ meeting, and a potential topping pattern may be forming on the EUR/USD 1-hour chart.

We're seeing early signs that the US dollar rally could be losing steam and indices such as the DAX are finding stability. Whilst too early to pick out trend reversals, it does suggest that sentiment of this week is quietly changing.

The US dollar finds itself bid ahead of the European open, with a key Fed member set to deliver a speech. And with a ZEW economic report up first, EUR/USD will be a key market to watch over the next 24 hours.

We have arguably seen the biggest central bank surprise of the week, with the Fed’s dovish pivot. But that may also influence the tone of the SNB, BOE and ECB at their meetings today – even if only to a degree.