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The US Dollar is accelerating its reversal from last week’s highs above 1.4100 on Wednesday, with sellers testing support near 1.4070 as a raft of delayed US data releases keeps giving reasons for Federal Reserve doves to call for an easier monetary policy.
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Credit Agricole warns of EUR/USD downside risk come next year
Credit Argicole notes that as things stand, “many EUR positives and USD negatives are already in the price” when viewing EUR/USD. Taking that into consideration, that limits room for further upside in the near-term for the pair. As such, the firm is maintaining a more neutral stance for the remainder of 2025.
On upside risks, they argue that further attacks by Trump on the Fed’s independence and US data softness after the shutdown could give EUR/USD a temporary boost. However, the bigger picture outlook of the “sell America” trade has not quite materialised. On that, Credit Agricole points to the fact that we are still seeing record foreign inflows into US assets and that is a supportive factor for the dollar.
The second point is something we already talked about in September here.
Going back to Credit Agricole’s note, they warn that French political risks could resurface again in the closing stages of 2025 – creating a fresh headwind for the euro. So, that will in turn cap any major gains for the pair ahead of the turn of the year. As for next year, they are holding a more bearish outlook with political risks in the euro area still persistent while any fiscal optimism looks set to fade over the medium-term. As such, they anticipate renewed EUR/USD selling throughout 2026.
This article was written by Justin Low at investinglive.com.
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GBP/USD Rises as Markets Await Crucial UK Budget
The GBP/USD pair extended its gains, reaching 1.3189, as investors await details of the UK budget, to be presented today, 26 November. All attention is on Chancellor Rachel Reeves and her strategy to close the fiscal deficit while adhering to the government’s self-imposed budgetary rules. This challenge requires finding tens of billions of pounds in […]
The post GBP/USD Rises as Markets Await Crucial UK Budget appeared first on Action Forex.
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EUR/USD Rebounds Cautiously, USD/CHF Coils for Next Move
EUR/USD is attempting a recovery wave from the 1.1500 zone. USD/CHF climbed higher above 0.8050 and might correct some gains. Important Takeaways for EUR/USD and USD/CHF Analysis Today The Euro declined toward 1.1500 before it started a recovery wave against the US Dollar. There was a break above a major bearish trend line with resistance […]
The post EUR/USD Rebounds Cautiously, USD/CHF Coils for Next Move appeared first on Action Forex.
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Nasdaq 100 Ahead of the Holidays
As the chart shows, the Nasdaq 100 (US Tech 100 mini on FXOpen) has rebounded from its roughly 2.5-month low recorded on 21 November. At that point, bearish sentiment was driven by fears of an “AI bubble”, expectations of higher interest rates, and other news-related pressures. The recovery from that level was strong — in […]
The post Nasdaq 100 Ahead of the Holidays appeared first on Action Forex.
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GBP/USD carves higher low near 1.3030 – Société Générale
GBP/USD is showing early signs of recovery, forming a higher low at 1.3030 and breaking the descending channel, with potential upside toward 1.3300 if support holds, Société Générale’s FX analysts note. -
USD slips amid Ukraine peace optimism – ING
The US Dollar (USD) has declined since Monday, in line with our call. While there are some signs that Ukraine peace deal optimism is supporting European currencies, short-term misvaluation justifies a dollar correction. -
WTI remains below $58.00 due to potential for a Ukraine-Russia peace
West Texas Intermediate (WTI) Oil price extends its losses for the second successive session, trading around $57.80 per barrel during the European hours on Wednesday. WTI price fell 1.70% in the previous session as prospects for a Ukraine-Russia peace agreement improved. -
Switzerland November UBS investor sentiment 12.2 vs -7.7 prior
- Prior -7.7
That’s a modest improvement in Swiss investor sentiment, even if the current conditions index is seen worsening to -4.9 from 0.0 in October. UBS notes that: “Analysts’ expectations regarding export momentum have brighetened significantly after Switzerland and the US announced a joint declaration of intent for a trade agreement.”
This article was written by Justin Low at investinglive.com.
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Switzerland November UBS investor sentiment 12.2 vs -7.7 prior
- Prior -7.7
That’s a modest improvement in Swiss investor sentiment, even if the current conditions index is seen worsening to -4.9 from 0.0 in October. UBS notes that: “Analysts’ expectations regarding export momentum have brighetened significantly after Switzerland and the US announced a joint declaration of intent for a trade agreement.”
This article was written by Justin Low at investinglive.com.
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