Daily Forex Analysis

Markets shifted slightly on Friday as strong U.S. labor data and easing trade fears influenced sentiment across major assets.

The euro climbed to $1.1780 on expectations of a US-EU deal limiting tariffs to 15%.

Gold dips as trade progress tempers demand; eyes turn to upcoming Fed meeting.

The euro held above $1.16 on Tuesday as traders awaited the ECB’s policy decision, with rates expected to stay on hold amid tariff concerns and recent euro strength. 

The US dollar held firm on Monday as traders remained cautious ahead of the August 1 tariff deadline. EUR/USD slipped to 1.1620, while GBP/USD stayed near a two-month low after UK labor data showed a rising jobless rate.

The U.S. dollar regained strength on Friday after solid retail sales and jobless claims data reduced near-term Fed rate cut expectations. The euro fell to $1.16, its lowest in nearly a month, while the pound slipped to an eight-week low near $1.339

With Fed officials warning of inflationary risks from trade policies, the broader market sentiment remains policy-driven.

The euro recovered slightly on Wednesday by breaking a five-day losing streak despite persistent U.S. tariff threats and elevated inflation risks. EUR/USD traded near 1.1610, supported by cautious market sentiment ahead of key U.S. data releases.