Market Analysis

GBP/USD is holding near 1.34 as renewed Gulf conflict and rising oil prices strengthen the dollar while increasing UK inflation risks. BoE rate-hike signals support sterling, but weak household finances and fiscal constraints limit the pound’s upside.

NZD/USD has strengthened after the Reserve Bank of New Zealand raised the OCR to 2.50% and signalled that further hikes are likely. However, delayed economic recovery, weak domestic demand, and lingering U.S. inflation risks may limit the kiwi’s upside.

EUR/JPY remains elevated as the yen stays close to multi-decade lows and the euro remains stable, but softer eurozone inflation, possible ECB patience, and Japan’s intervention risk are making further upside harder to chase.

GBP/USD has recovered after weak U.S. jobs data reduced Fed hike expectations and pushed the dollar lower. However, softer UK activity signals and a cautious Bank of England outlook mean sterling’s rebound still needs confirmation.

USD/JPY remains near elevated levels even after softer U.S. jobs data reduced Fed hike expectations. The yen is still pressured by Japan’s policy uncertainty and weak-yen inflation concerns, while intervention risk limits aggressive dollar-yen buying.

USD/CAD may ease after weak U.S. jobs data reduces near-term Fed hike expectations, but lower oil prices, USMCA uncertainty, and weaker Bank of Canada rate-hike pricing are limiting the Canadian dollar’s recovery.

AUD/USD is recovering as weak U.S. jobs data pushes the dollar lower and reduces near-term Fed hike expectations. However, Australia’s slowing economy and cautious RBA stance mean the Aussie’s rebound still needs confirmation.

GBP/JPY remains elevated as the Bank of England’s high-rate stance supports sterling, but weak UK momentum and Japan’s rising intervention risk around the yen are making further upside less straightforward.

EUR/USD remains under pressure as higher U.S. Treasury yields and Fed hike expectations support the dollar ahead of key U.S. jobs data. Eurozone manufacturing resilience gives the euro some support, but softer inflation readings are reducing urgency for further ECB tightening.