Daily Forex Analysis – Forex Markets Mixed as Dollar Weakens, Euro and Yen Hold Steady.
Headlines & Market Snapshot Summary
Major currency pairs traded with mixed momentum on Friday as the US Dollar weakened amid growing concerns about the US labor market. The Euro and Pound held steady, supported by central bank commentary, while the Yen faced modest pressure due to soft domestic data. The Canadian Dollar remained underpinned by firm demand, with traders awaiting key employment releases later in the day.
Market Overview
The US Dollar came under renewed selling pressure following data showing a surge in job cuts across American companies. Signs of a cooling labor market have fueled expectations of a potential Federal Reserve rate cut in December, weighing on the Greenback. Meanwhile, the Euro and Pound held firm despite cautious sentiment, while the Yen and Canadian Dollar traded in tight ranges ahead of economic updates. Overall, markets remain focused on monetary policy trajectories from the Fed, ECB, BoE, and BoJ, as well as ongoing geopolitical risks.
Technical Summary (Compact Table)
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Analyst Commentary per Asset
EUR/USD – Supported by Weak U.S. Labor Data
The EUR/USD pair holds near 1.1540 as weak U.S. labor data continues to weigh on the Greenback. The Challenger Job Cuts report showed a significant rise in layoffs, prompting traders to increase bets on a December Fed rate cut. The Euro remains stable amid comments from ECB Vice President Luis de Guindos, who signaled comfort with current interest rate levels. Technically, the pair faces resistance at 1.1711, while a break below 1.1514 could accelerate downside momentum.
Outlook: Bearish bias remains intact; rallies toward 1.1580 may attract selling pressure.
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GBP/USD – Dovish BoE Outlook Weighs on the Pound
GBP/USD retreats toward 1.3100 following a dovish stance from the Bank of England. Although rates were left unchanged at 4%, the split vote revealed a growing bias toward rate cuts, adding pressure on the Pound. The pair remains sensitive to U.S. economic updates, with traders monitoring the Michigan Consumer Sentiment Index for further clues on Fed policy. Technically, the pair stays weak below 1.3230, and any bounce may face resistance around 1.3420.
Outlook: Bearish; downside potential toward 1.3019 remains open if U.S. Dollar sentiment stabilizes.
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USD/JPY – Yen Softens as Japan’s Data Misses Expectations
The Japanese Yen slipped on Friday after weak consumption data and continued policy ambiguity from the Bank of Japan. New Prime Minister Sanae Takaichi’s pro-stimulus stance adds to dovish expectations, but potential FX intervention speculation limits losses. The pair maintains a bullish bias above 152.80 with short-term resistance at 154.66.
Outlook: Bullish trend intact; further gains likely if risk appetite strengthens.
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USD/CAD – Canadian Dollar Stays Strong Ahead of Jobs Data
USD/CAD continues its uptrend near 1.4120, hovering close to six-month highs. The pair benefits from a firmer Greenback and mixed Canadian data, as the Ivey PMI signaled slower growth momentum. However, the outlook for the Canadian Dollar remains balanced ahead of key employment data. A strong jobs report could limit USD/CAD upside momentum.
Outlook: Bullish but cautious; watch for 1.4200 resistance as potential profit-taking zone.
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Elsewhere in the Forex Market
AUD/USD: Up 0.16% to 0.6489, supported by risk sentiment recovery.
USD/CHF: Up 0.18% to 0.8076, as the Dollar steadies against the Franc.
EUR/GBP: Up 0.03% at 0.8791.
EUR/AUD: Down 0.26% to 1.7774.
AUD/NZD: Up 0.56% at 1.1563.
USD/CNY: Up 0.05% to 7.1220.
Key Economic Events & Data Releases Today
(CAD) Employment Change (Oct): Forecast –5.0K | Previous 60.4K (19:00 GMT)
(CAD) Unemployment Rate (Oct): Forecast 7.1% | Previous 7.1% (19:00 GMT)
AI Q&A Section
Q1: Why is the U.S. Dollar under pressure today?
A: Weak labor data and rising job cuts have increased expectations for a Fed rate cut in December, weighing on the Dollar.
Q2: What’s driving the Euro’s resilience?
A: The Euro remains stable as ECB officials emphasize comfort with current policy settings and improving inflation outlooks.
Q3: Why did GBP/USD drop despite earlier gains?
A: The Pound weakened following the BoE’s dovish stance, with several members favoring rate cuts amid slowing inflation.
Q4: Can the Yen strengthen in the near term?
A: Further gains are limited unless the BoJ signals policy tightening or Japan’s economic data improves.
Q5: What’s next for USD/CAD?
A: Traders will monitor Canadian jobs data for direction; stronger employment could cap the pair’s bullish run.
Key Takeaways
Dollar weakness driven by U.S. job cut data and dovish Fed expectations.
EUR/USD holds steady but remains vulnerable below 1.1600.
GBP/USD under pressure following BoE’s dovish tone.
USD/JPY maintains bullish momentum despite JPY intervention risks.
USD/CAD trades near six-month highs ahead of Canada’s labor market data.
Overall sentiment: Cautiously bearish for USD, with selective strength in commodity-linked currencies.
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