Daily Forex Analysis

The U.S. dollar strengthened on Wednesday, supported by a sharp rebound in consumer confidence and falling Treasury yields. EUR/USD dipped to 1.1310 despite an extension of the EU tariff deadline to July 9. USD/JPY climbed above 144.5 as bond market jitters and BOJ uncertainty weighed on the yen.

EUR/USD advanced toward $1.14 as U.S. fiscal concerns weighed on the dollar, while the yen touched a one-month high on inflation surprises and risk aversion.

The euro extended its recovery, nearing 1.1330, helped by muted European headlines and hopes for progress in U.S. trade talks. The Japanese yen broke below 144.00 as hawkish BoJ expectations supported gains.

EUR/USD rebounded near 1.1330 as Treasury yields fell and traders awaited Eurozone GDP data.

The euro and British pound extended their rallies on Thursday amid mounting concerns over the U.S. fiscal outlook, following Moody’s downgrade of the U.S. credit rating. 

EUR/USD pushed higher toward 1.1330, lifted by a weaker dollar and cautious optimism around U.S. tariff de-escalation.

Risk sentiment shifted this week as Moody’s downgraded the US credit rating, weakening the dollar and supporting major currencies and commodities.

The U.S. dollar gained traction Monday after the U.S. and China agreed to pause retaliatory tariffs for 90 days, prompting a gap lower in EUR/USD to 1.1064. Meanwhile, Moody’s downgraded the U.S. credit rating, citing fiscal concerns, sparking risk aversion and supporting safe-haven assets like gold and the yen.