Market Analysis: EUR/USD, GBP/USD, and USD/JPY


At the US Federal Reserve meeting, officials expectedly kept the interest rate at 5.25–5.50%. According to the head of the regulator, Jerome Powell, tightening monetary policy is still possible if indicators begin to show negative dynamics again. At the same time, the US Federal Reserve aims to implement a program of gradually reducing the rate to 2.90% by 2026. Officials also intend to begin the gradual sale of bonds from their balance sheet, which are currently being purchased in the amount of USD 95.0 billion, of which USD 60.0 billion are government bonds, and another USD 35.0 billion are mortgage debt securities.


The euro fell on Thursday but recovered slightly at the start of today's session. The US dollar weakened a day after the Federal Reserve signalled that US monetary policy would remain accommodative even longer. The Fed kept interest rates on hold Wednesday, in line with market expectations, but signalling that its officials are increasingly confident that aggressive policies can succeed in reducing inflation without crushing the economy or leading to large job losses. Along with another possible rate hike this year, the Fed's updated forecasts show significantly tighter rates through 2024 than previously expected. The US dollar index, which measures the currency against a basket of peers, was down 0.10% at 105.33 after rising to 105.74, its highest level since March. The immediate resistance of the EUR/USD pair can be seen at 1.0663, a breakout to the upside could trigger a rise towards 1.0702. On the downside, immediate support is seen at 1.0616, a break below could take the pair towards the 1.0584 direction.

At the lows of the week, a new downward channel has formed. Now, the price has moved away from the lower border of the channel and may continue to rise.


The pound fell to its lowest level since March after the Bank of England left interest rates unchanged on Thursday, ending a long series of rate hikes. The Bank of England paused long-term interest rate hikes on Thursday as the British economy slowed but said it was not taking the recent fall in inflation for granted. The Bank of England's Monetary Policy Committee voted by a narrow 5-4 margin to keep the bank rate at 5.25%. Four members voted to increase the rate to 5.5%. The pound fell 0.41% to USD 1.2293. The nearest resistance can be seen at 1.2356, a break upward could trigger a rise to 1.2403. On the downside, immediate support is seen at 1.2245, a break below could take the pair towards 1.2221.

At the lows of the week, a new downward channel has formed. The price has moved away from the lower boundary and may continue to rise.


The dollar fell against the yen on Thursday as attention remained focused on the possibility of the Japanese government intervening in currency markets to support the currency. Japan is not ruling out any options to address excessive volatility in foreign exchange markets, a top government official said on Thursday. Chief Cabinet Secretary Hirokazu Matsuno said he hoped the Bank of Japan, holding a two-day policy meeting that ends Friday, would adopt "adequate" policies to achieve its 2% inflation target.

Matsuno's remarks echo those of top currency diplomat Masato Kanda, who told reporters on Wednesday that authorities would not rule out any options if excessive moves continue due to higher import bills and businesses that rely on imported raw materials. Strong resistance can be seen at 148.55, a break higher could trigger a rise towards 148.98. On the upside, immediate support is seen at 147.63, a break below could take the pair towards 146.22.

The previous ascending channel remains. Now, the price is in the middle of the channel and may continue to rise.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. 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.

Latest from Forex Analysis

AUD/JPY Analysis: Rate Falls to Important Support EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls

Trader’s Tools

Fixed Exchange Rates: Benefits and Limitations

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Trader’s Tools

Alternative Investment Options

Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.