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Forex Weekly Outlook: Dollar Strength After Fed Cut, EUR/USD Near 1.1750, GBP/USD Under Pressure.
Major currency pairs faced heightened volatility this week as central bank decisions and shifting Fed expectations drove market sentiment. With the Fed’s rate cut setting the tone, traders now turn to key economic releases, including PMIs, GDP, and the PCE Price Index, for fresh direction across FX markets.KEY HIGHLIGHTS
- EUR/USD slips near 1.1750 after Fed cut boosts Dollar.
- GBP/USD holds gains despite Fed rate cut and UK data.
- USD/JPY steadies near highs as markets monitor intervention risks.
- AUD/USD pressured by strong Dollar, China growth concerns weigh heavily.
Markets In Focus Today – EUR/USD
EUR/USD Weekly Outlook: Dollar Strengthens After Fed, Focus Shifts to Upcoming PCE Inflation Data.
The EUR/USD pair reached a fresh four-year high of 1.1918 on Wednesday, but later surrendered most of its gains, closing the week near 1.1750. Central banks dominated the spotlight, with the Federal Reserve’s policy decision driving volatility and boosting the US Dollar (USD). While USD strength could prove sustainable, its trajectory hinges on upcoming macroeconomic data. The FOMC opted for a measured move, cutting its benchmark rate by 25 basis points (bps) following its September meeting. The Summary of Economic Projections (SEP) reinforced expectations of additional easing, signaling two more cuts in 2025, aligning with market forecasts of reductions in October and December. However, the SEP projected only one cut for 2026. Notably, Stephen Miran, recently appointed by President Donald Trump, dissented, favoring a more aggressive 50 bps cut and advocating for a total 150 bps reduction before year-end. Looking ahead, the macroeconomic calendar will turn more active. This week, S&P Global and regional banks will publish September PMI flash estimates across major economies. European readings, via Hamburg Commercial Bank (HCOB), are expected to indicate a modest pickup in activity, while US data is projected to confirm ongoing expansion. Additionally, the US will release the final Q2 GDP estimate on Wednesday, expected to reaffirm 3.3% annualized growth. On Friday, attention will shift to the August PCE Price Index, the Fed’s preferred inflation measure, which follows a disappointing CPI print for the same month, suggesting inflationary pressures persist.Technical Overview With Chart :
Moving Averages :
Exponential :
- MA 10 :1759 | Negative Crossover | Bearish
- MA 20 :1728 | Positive Crossover | Bullish
- MA 50 :1666 | Positive Crossover | Bullish
- MA 10 :1761 | Negative Crossover | Bearish
- MA 20 :1712 | Positive Crossover | Bullish
- MA 50 :1666 | Positive Crossover | Bullish
Stochastic Oscillator : 56.1889 | Buy Zone | Neutral
Resistance And Support Levels :
- R1 :1740 R2 :1.1823
- S1 :1472 S2 :1.1389
Trade Suggestion : Limit Buy : 1.1724 | Take Profit : 1.1812 | Stop Loss : 1.1682
GBP/USD
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