Wednesday’s session reversed Tuesday’s tone as US yields rebounded, restoring support for the dollar. Markets reassessed expectations for policy easing, reinforcing the narrative that the Fed remains patient amid resilient economic conditions.
EUR/USD
Technical Analysis
EUR/USD reversed lower after failing to sustain gains. The rejection near resistance reinforced the broader range-bound structure, with sellers regaining short-term control.
Fundamental Analysis
The euro weakened primarily due to renewed dollar demand. Stable US economic expectations reduced pressure for aggressive Fed easing, favoring the greenback.
GBP/USD
Technical Analysis
GBP/USD mirrored euro weakness, slipping back toward mid-range support. Momentum indicators turned neutral-to-bearish, signaling fading upside pressure.
Fundamental Analysis
Sterling remained sensitive to external drivers. Without supportive UK data, the pound followed yield-driven dollar flows.
USD/JPY
Technical Analysis
USD/JPY resumed upward movement, reclaiming lost ground and confirming strong dip-buying behavior. Higher lows reinforced bullish continuation potential.
Fundamental Analysis
Rising US yields widened interest-rate differentials again, restoring USD/JPY’s primary bullish driver.
Market Outlook
The market tone shifted back toward cautious USD strength, though conviction remained conditional on further data confirmation.