Dollar Pressures Currencies, GBP Holds Steady (04.28.2025)

EUR/USD slipped near 1.1360 as dollar strength and expectations of a dovish ECB weighed on the euro. The Japanese yen neared 144 against the dollar, pressured by improving global trade sentiment and ahead of renewed U.S.-Japan trade talks.

Gold dropped below $3,300 per ounce, losing ground as easing U.S.-China tensions and a stronger dollar reduced safe-haven demand. GBP/USD hovered around 1.3300, supported by strong UK retail sales and hopes for a U.K.-U.S. trade deal, while silver fell to $32.80, pressured by improved risk sentiment and a firm dollar as traders awaited key U.S. economic data later this week.

EUR/USD Falls on ECB Dovishness

EUR/USD traded lower near 1.1360 on Monday, pressured by a stronger U.S. dollar following easing U.S.-China trade tensions. Optimism grew after China reduced some tariffs and U.S. officials mentioned ongoing talks, although Beijing denied any formal negotiations. Meanwhile, expectations for a dovish ECB strengthened as Eurozone inflation is expected to stay below the 2% target.

Key resistance levels are at 1.1460, 1.1580, and 1.1680, while support lies at 1.1260, 1.1200, and 1.1150.

Yen Nears 144 as U.S.-Japan Talks Continue

The Japanese yen weakened toward 144 per dollar on Monday, extending last week’s slide as global trade sentiment improved and the dollar firmed. Markets reacted to a private meeting between Japan’s Finance Minister Kato and U.S. Treasury Secretary Bessent, where both sides emphasized ongoing dialogue on currency issues. Meanwhile, Japan’s trade negotiator heads to Washington this week, while the Bank of Japan is expected to keep rates steady at 0.5% with concerns about the economic effects of U.S. tariffs.

Key resistance is at 144.00, with further levels at 145.90 and 146.75. Support stands at 139.70, followed by 137.00 and 135.00.

Gold Slips Below $3,300 on Easing Trade Fears

Gold fell below $3,300 per ounce on Monday as easing U.S.-China tensions and a stronger dollar reduced safe-haven demand. President Trump hinted at progress in trade talks, although China denied any formal negotiations while cutting tariffs on some U.S. goods. Traders are now turning their attention to upcoming U.S. economic releases, including Q1 GDP, PCE inflation, and jobs data, for insight into the Fed’s policy path.

Resistance is at $3,365, $3,405, and $3,500, while support levels are $3,250, $3,165, and $3,050.

GBP/USD Holds Steady Near 1.3300

GBP/USD hovered around 1.3300 during early Asian trading on Monday, supported by strong UK retail sales data and hopes for a U.K.-U.S. trade agreement. However, the pair remains under some pressure from a stronger dollar and uncertainty surrounding U.S.-China trade developments. Although Fed rate cut expectations are limiting the dollar’s strength for now, the overall market mood remains cautious.

If GBP/USD breaks above 1.3430, resistance levels will be at 1.3500 and 1.3550, while support stands at 1.3200, 1.3050, and 1.2960.

Silver Weakens to $32.80 on Dollar Strength

Silver prices slipped to around $32.80 on Monday as easing U.S.-China tensions dampened safe-haven demand. China's move to exempt some U.S. imports from steep tariffs supported risk sentiment, while the U.S. Dollar Index rose close to 99.70, further pressuring silver. Markets now await key U.S. data, including GDP, PCE inflation, and jobs numbers, that could influence Fed policy expectations.

If silver rises, resistance is at 33.80, 34.20, and 34.85, while support levels are at 32.50, 31.40, and 30.20.