Daily Market Analysis By FXOpen

GBP/USD Rate at 2-Month High


As the GBP/USD chart shows, the pair is trading this morning above 1.3620 ? its highest level since the beginning of July.

The bullish sentiment is driven by the divergence  in central bank policies:

→ United States: Traders are betting on an interest rate cut, supported by President Trump. The Federal Reserve will announce its decision tomorrow at 21:00 GMT+3, and the market expects a reduction of at least 0.25%, from 4.25%?4.50% to 4.00%?4.25%.

→ United Kingdom: Traders anticipate the rate will remain at 4.00%. The Bank of England will announce its decision on Thursday at 14:00 GMT+3.

Although the rates of the two central banks are comparable, the situation differs: in the UK, inflation is more persistent and rate cuts are seen as risky, while in the US, President Trump is exerting pressure on the Fed?s leadership.

An additional boost for the pound comes from a wave of investment optimism linked to US President Donald Trump?s state visit to the UK. According to media reports, agreements worth around $10 billion are expected to be announced during the visit.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Spotting Market Momentum: 5 Popular Momentum Indicators


Momentum indicators are important tools for traders seeking to evaluate the strength and speed of price movements. These technical analysis instruments are used by traders to identify potential entry and exit points, confirm market signals, and filter market noise. In this article, we review five momentum indicators that remain widely used by traders to support them in their  decision-making in volatile markets.

What Is a Momentum Indicator?
Momentum in technical analysis refers to the rate at which an asset's price accelerates or decelerates. Understanding momentum may assist traders in identifying potential trend continuations or reversals.

A momentum indicator is a technical analysis tool that measures how quickly and strongly an asset?s price is moving. Instead of showing the direction of the trend, it highlights the strength behind price movements. By comparing price changes over a set period, momentum indicators can help traders see if a market is gaining or losing strength. This information is often used to spot potential overbought or oversold conditions and to identify possible entry or exit points.

A stock momentum indicator like the Relative Strength Index (RSI), for instance, may indicate that stocks are currently bought or sold too heavily and their price is due for a reversal.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Market Awaits the Fed?s Decision: Euro and Franc at Yearly Highs


European currencies continued their rally this week, setting fresh yearly highs: the euro and the Swiss franc consolidated at new levels, supported by a weaker US dollar and expectations of a Federal Reserve rate cut. The key question remains whether this rise will develop into a new bullish impulse or give way to a correction.

Today, the Federal Reserve is set to deliver its crucial interest rate decision. The market is almost certain of a 25-basis-point cut, driven by signs of a cooling labour market. The decision comes against a backdrop of unprecedented political pressure and ongoing legal proceedings, raising concerns about the Fed?s independence and the composition of its board.

Investors will focus closely on Jerome Powell?s comments and the updated macroeconomic projections, which are expected to provide guidance for the remaining meetings this year. The central intrigue is the size of the rate reduction the Fed will signal.  A dovish Fed stance could support further gains for the euro and the franc against the dollar, while a cautious tone would heighten the risk of a pullback. However, the further trajectory of EUR/USD and USD/CHF will depend not only on Powell?s rhetoric but also on incoming data from the US, the eurozone, and Switzerland.

EUR/USD


The EUR/USD pair yesterday broke out of the 1.1570?1.1760 range, where it had been trading for several weeks. A new yearly high was recorded at 1.1830. Technical analysis suggests the potential for further upside towards 1.1900?1.2000, provided that 1.1830 holds as a support level. However, if the daily candle closes below 1.1830 in the coming days, a downward correction may follow.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Double Blow for the USD/CAD Market


Today, the USD/CAD market faces a double blow from central banks:
→ At 16:45 GMT+3, the Bank of Canada will announce its decision. The rate is expected to be cut from 2.75% to 2.50%.
→ At 21:00 GMT+3, the Federal Reserve will follow with its own rate announcement.

Both events will be accompanied by statements from the central bank chairmen on future outlooks, and the USD/CAD market is likely to experience heightened volatility today.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Dollar and the Pound Shift Course As Markets Assess Central Bank Decisions


The US dollar fell sharply on Wednesday following the Federal Reserve?s decision to cut rates by 0.25%. However, by the end of the session it had regained part of its losses, reflecting ongoing uncertainty over the regulator?s next moves. The pound, meanwhile, after an initial rise on the back of the weaker dollar, turned lower ahead of today?s Bank of England meeting, which could bring fresh volatility to the GBP/USD pair. The Bank of Canada meeting also added to the overall market mood, with the regulator signalling a cautious stance on future policy.

During today?s trading, the market?s attention is focused on fresh US releases: labour market data, initial jobless claims, as well as the Philadelphia Fed?s business activity index and capital expenditure figures. These numbers could either support a corrective rebound in the dollar or renew pressure if they confirm an economic slowdown. For the pound, the key drivers will be the outcome of the Bank of England?s voting and accompanying statements, with uncertainty still surrounding how far the regulator is willing to go in easing policy.

USD/CAD


Yesterday, the price tested 1.3730 and bounced sharply from that level, forming a bullish piercing line pattern. Technical analysis of USD/CAD suggests a potential continuation of the rise towards 1.3800?1.3820, in line with confirmation of the mentioned pattern. Should negative US data emerge, the pair may fall back towards 1.3730?1.3760.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Nasdaq 100 Analysis: Index Hits All-Time High


As the chart shows, today the Nasdaq 100 index (US Tech 100 mini on FXOpen) has, for the first time in history, climbed above the 24,500 level.

According to media reports, bullish sentiment was driven by the long-awaited Fed decision to cut interest rates for the first time in 2025.

Although the Fed also indicated it would remain cautious about further cuts, the easing acted as a bullish catalyst for the entire stock market ? European equities also advanced today, with technology companies leading the way.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Meta Platforms (META) Shares Hold Steady After Mishap


An awkward moment occurred at the Meta Connect 2025 product presentation, where Mark Zuckerberg showcased innovations but ran into technical glitches:
→ The AI assistant built into the Ray-Ban Display smart glasses froze;
→ The neural bracelet, designed to control the interface with gestures, failed to answer a video call.

News of the mishap quickly spread across social media, with the blame for the issues pinned on Wi-Fi. Despite the reputational blow, META shares showed resilience. This suggests that investors are focusing on deeper, fundamental factors, including the potential of augmented reality and the social media giant?s drive for greater efficiency.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.