📊 Gold continues declining amid new trade deal
Gold (XAU) ended the week under the key $3,360 level, declining by 1.3%. XAUUSD recorded a third consecutive day of losses as newly announced U.S.–EU trade deals reduced demand for safe-haven assets.
👉 Possible effects for traders
The U.S.–EU trade agreement includes a 15% tariff on EU exports to the U.S., avoiding a steeper 30% levy. The agreement also includes EU commitments to invest billions of U.S. dollars in U.S. industry. The deal mirrors key parts of the recent U.S. trade agreement with Japan. The tariff deal has eased fears of a broader trade war, reducing gold's appeal as a safe-haven asset. A stronger U.S. dollar added to the downward pressure on gold prices, making gold more expensive for foreign buyers.
Meanwhile, investors are bracing for an eventful week ahead, featuring a Federal Reserve (Fed) policy meeting and a slew of economic data releases. The Fed is widely expected to keep rates unchanged, but investors will closely watch for any hints of a potential rate cut in September. Attention will also turn to key labour market indicators, including JOLTS, ADP employment, and the nonfarm payroll reports.
Despite the recent dip, gold remains up by approximately 30% year-to-date, reflecting strong long-term performance driven by geopolitical instability, though short-term trade optimism has caused a pullback. Key technical levels to watch are resistance at $3,360 and support along the trend line formed by higher lows since early July. If XAUUSD holds the trendline, the rebound towards $3,360 and a larger timeframe uptrend continuation are possible. Otherwise, a steep sell-off is likely as investors could rush out of the failing uptrend to cover their profits.
Gold (XAU) ended the week under the key $3,360 level, declining by 1.3%. XAUUSD recorded a third consecutive day of losses as newly announced U.S.–EU trade deals reduced demand for safe-haven assets.
👉 Possible effects for traders
The U.S.–EU trade agreement includes a 15% tariff on EU exports to the U.S., avoiding a steeper 30% levy. The agreement also includes EU commitments to invest billions of U.S. dollars in U.S. industry. The deal mirrors key parts of the recent U.S. trade agreement with Japan. The tariff deal has eased fears of a broader trade war, reducing gold's appeal as a safe-haven asset. A stronger U.S. dollar added to the downward pressure on gold prices, making gold more expensive for foreign buyers.
Meanwhile, investors are bracing for an eventful week ahead, featuring a Federal Reserve (Fed) policy meeting and a slew of economic data releases. The Fed is widely expected to keep rates unchanged, but investors will closely watch for any hints of a potential rate cut in September. Attention will also turn to key labour market indicators, including JOLTS, ADP employment, and the nonfarm payroll reports.
Despite the recent dip, gold remains up by approximately 30% year-to-date, reflecting strong long-term performance driven by geopolitical instability, though short-term trade optimism has caused a pullback. Key technical levels to watch are resistance at $3,360 and support along the trend line formed by higher lows since early July. If XAUUSD holds the trendline, the rebound towards $3,360 and a larger timeframe uptrend continuation are possible. Otherwise, a steep sell-off is likely as investors could rush out of the failing uptrend to cover their profits.
Chart: GBPJPY, Daily
GBPJPY consolidated within a tight range slightly above the ascending trendline, indicating neutral momentum while awaiting a clear breakout.
If GBPJPY breaches above 199.50, the price could gain upward momentum toward the next resistance at 201.40, confluence with the 78.6% Fibonacci Extension.
Conversely, a break below the ascending trendline and EMA21 could prompt a decline to the following support at 196.00, confluence with EMA78.
GBPJPY consolidated within a tight range slightly above the ascending trendline, indicating neutral momentum while awaiting a clear breakout.
If GBPJPY breaches above 199.50, the price could gain upward momentum toward the next resistance at 201.40, confluence with the 78.6% Fibonacci Extension.
Conversely, a break below the ascending trendline and EMA21 could prompt a decline to the following support at 196.00, confluence with EMA78.
📊Euro under pressure after trade deal reassessed
The euro (EUR) fell by 1.4% on Monday, the sharpest one-day drop in over two months, on worries about growth and the negative impact of the recent trade deal.
👉 Possible effects for traders
The euro suffered steep losses as investors digested information that the trade deal between the EU and the U.S. favoured the latter and hardly lifted the eurozone's economic outlook. France called the trade agreement a 'dark day' for Europe, saying the EU had caved in to the U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer significant damage due to the agreed tariffs.
Meanwhile, the U.S. dollar (USD) strengthened and climbed by 1% against a basket of currencies overnight. The key factors affecting USD are ongoing U.S.–China trade talks in Stockholm and the Federal Reserve (Fed) interest rate decision due on Wednesday.
Apart from the ongoing U.S.–China negotiations, the Fed's monetary policy meeting is the main event of the week. The market expects the Fed to leave the interest rate unchanged but price in a rate cut in September. Traders will also watch the officials' comments to get more clues on the U.S. interest rate path.
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The euro (EUR) fell by 1.4% on Monday, the sharpest one-day drop in over two months, on worries about growth and the negative impact of the recent trade deal.
👉 Possible effects for traders
The euro suffered steep losses as investors digested information that the trade deal between the EU and the U.S. favoured the latter and hardly lifted the eurozone's economic outlook. France called the trade agreement a 'dark day' for Europe, saying the EU had caved in to the U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer significant damage due to the agreed tariffs.
Meanwhile, the U.S. dollar (USD) strengthened and climbed by 1% against a basket of currencies overnight. The key factors affecting USD are ongoing U.S.–China trade talks in Stockholm and the Federal Reserve (Fed) interest rate decision due on Wednesday.
Apart from the ongoing U.S.–China negotiations, the Fed's monetary policy meeting is the main event of the week. The market expects the Fed to leave the interest rate unchanged but price in a rate cut in September. Traders will also watch the officials' comments to get more clues on the U.S. interest rate path.
Sign Up Now ➡️https://bit.ly/attocta
GBPJPY consolidated within a tight range slightly above the ascending trendline, indicating neutral momentum while awaiting a clear breakout.
If GBPJPY breaches above 199.50, the price could gain upward momentum toward the next resistance at 201.40, confluence with the 78.6% Fibonacci Extension.
Conversely, a break below the ascending trendline and EMA21 could prompt a decline to the following support at 196.00, confluence with EMA78.
If GBPJPY breaches above 199.50, the price could gain upward momentum toward the next resistance at 201.40, confluence with the 78.6% Fibonacci Extension.
Conversely, a break below the ascending trendline and EMA21 could prompt a decline to the following support at 196.00, confluence with EMA78.
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Financial markets are on high alert today as a series of important economic events loom large, starting with:
🕐 12:15 GMT – ADP Non-Farm Employment Change, offering early insight into the U.S. job market.
🏦 13:45 GMT – Bank of Canada’s overnight rate decision, with potential sharp moves for the CAD.
🔥 The Main Event at 18:00 GMT – The US Federal Reserve’s interest rate decision, a market-mover with the power to shift global sentiment.
⚠️ With such high-impact data lined up, volatility is expected to spike, possibly leading to unpredictable trading swings.
🕐 12:15 GMT – ADP Non-Farm Employment Change, offering early insight into the U.S. job market.
🏦 13:45 GMT – Bank of Canada’s overnight rate decision, with potential sharp moves for the CAD.
🔥 The Main Event at 18:00 GMT – The US Federal Reserve’s interest rate decision, a market-mover with the power to shift global sentiment.
⚠️ With such high-impact data lined up, volatility is expected to spike, possibly leading to unpredictable trading swings.
Market gaps happen when the opening price doesn’t match the previous day’s close. Higher open? It might be time to buy. Lower open? Could be a chance to sell. How do you trade market gaps?
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📊 Euro falls sharply as Fed remains cautious
The euro (EUR) extended its decline towards 1.14000, the lowest level since mid-June. A stronger U.S. dollar (USD) pressured the euro as traders reacted to the Federal Reserve's (Fed) latest policy decision.
👉 Possible effects for traders
The Fed kept the federal funds rate unchanged as expected. Fed Chair Jerome Powell signalled at the press conference that a rate cut in September was far from guaranteed. Powell noted that the Fed would stick to its data-driven approach and that there was no clear plan for the Fed's next meeting. The U.S. dollar further strengthened, rising by nearly 2.5% in three days.
Meanwhile, fresh data showed the eurozone economy grew by a modest 0.1% in Q2, slowing sharply from 0.6% in Q1 but still exceeding expectations. The data was mixed, showing that Germany and Italy's gross domestic product (GDP) contracted by 0.1%, while France and Spain's expanded. Expectations for the European Central Bank (ECB) rate cut have also been pushed further out.
EURUSD is now in a freefall after closing way below 1.16000 on Wednesday. There is no significant support as the major trendline on the daily chart has been broken. Much will depend on the U.S. dollar, which reversed its longer-term downtrend and strengthened against the basket of main currencies, especially the euro. Investors should watch the upcoming Personal Consumption Expenditures (PCE) and Jobless Claims data today at 12:30 p.m. UTC for signs of a bigger picture change.
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The euro (EUR) extended its decline towards 1.14000, the lowest level since mid-June. A stronger U.S. dollar (USD) pressured the euro as traders reacted to the Federal Reserve's (Fed) latest policy decision.
👉 Possible effects for traders
The Fed kept the federal funds rate unchanged as expected. Fed Chair Jerome Powell signalled at the press conference that a rate cut in September was far from guaranteed. Powell noted that the Fed would stick to its data-driven approach and that there was no clear plan for the Fed's next meeting. The U.S. dollar further strengthened, rising by nearly 2.5% in three days.
Meanwhile, fresh data showed the eurozone economy grew by a modest 0.1% in Q2, slowing sharply from 0.6% in Q1 but still exceeding expectations. The data was mixed, showing that Germany and Italy's gross domestic product (GDP) contracted by 0.1%, while France and Spain's expanded. Expectations for the European Central Bank (ECB) rate cut have also been pushed further out.
EURUSD is now in a freefall after closing way below 1.16000 on Wednesday. There is no significant support as the major trendline on the daily chart has been broken. Much will depend on the U.S. dollar, which reversed its longer-term downtrend and strengthened against the basket of main currencies, especially the euro. Investors should watch the upcoming Personal Consumption Expenditures (PCE) and Jobless Claims data today at 12:30 p.m. UTC for signs of a bigger picture change.
Sign Up Now ➡️https://bit.ly/attocta