Weekly Forex Forecast: Divergent Trajectories Across Major Currency Pairs

Copper

Copper posted a bullish week but remained volatile, exhibiting noticeable back‑and‑forth movements. The mixed price action reflects the market’s reaction to broader economic signals and the ongoing electrification trend that underpins demand.

Traders are seizing on lower copper prices amid a broader electrification narrative, while AI data‑center growth is expected to provide longer‑term demand support.

Higher interest rates have occasionally pressured copper, but the $6.50 level remains a strong demand zone. Market participants are closely monitoring rate developments for further guidance.

USD/JPY

The US dollar gained modest ground against the yen this week as carry‑trade activity slowly resumes. This gradual rebound reflects reduced intervention from the Bank of Japan, which has been relatively quiet amid ongoing market pressures.

Recent US bond‑market dynamics and the Federal Reserve’s likely rate hikes through year‑end have added upside pressure to USD/JPY. The primary risk remains possible Bank of Japan intervention, though such actions are typically limited in scope.

EUR/USD

The euro weakened further versus the dollar as French debt concerns weigh on the broader eurozone. The pair has slipped below the 200‑week EMA and the 1.12 mark, suggesting potential for additional declines if fiscal stress persists.

A combination of higher US rates and rising borrowing costs across Europe—from France to Italy and Greece—has intensified pressure on the euro.

USD/CAD

The US dollar initially eased versus the Canadian dollar, but a weak Friday jobs report in Canada shifted sentiment. The pair remains above the 1.4250 level, a key resistance zone that will likely dictate further direction.

I am monitoring the situation closely; overall, the market appears to be seeking higher ground.

Gold

Gold retreated for most of the week before staging a modest rebound, as traders look for upside momentum. The metal’s next move will largely hinge on whether interest‑rate relief, especially in the United States, materializes.

Support remains evident between $4,200 and $4,000, an area that could attract buyers if rates moderate. While higher interest rates currently weigh on gold, a potential easing could reignite buying interest in this range.

AUD/USD

The Australian dollar posted a modest gain against the US dollar this week, distinguishing itself through the RBA’s relatively hawkish stance compared to neighboring central banks. This positioning keeps the AUD as a notable performer in the Asia‑Pacific currency landscape.

Technical analysis shows the AUD/USD testing support near the 50‑week EMA, hinting at a potential bounce. Key levels remain 0.6850 for support and 0.7250 as the immediate ceiling.

GBP/USD

The British pound is currently at the lower end of its trading range, struggling to hold the psychologically important 1.32 level, which is also approached by the 200‑week EMA. Traders are watching this zone closely for potential support.

With comparable interest‑rate environments, GBP/USD remains relatively neutral. Positioned at the range bottom, any dollar weakness could create an attractive entry point for buyers.

USD/CHF

The US dollar edged higher against the Swiss franc this week, hovering around the 0.83 level—a historically volatile and significant zone that may continue to influence price action.

The interest‑rate differential will likely become a key driver, while global uncertainty supports demand for the safe‑haven Swiss franc. The Swiss National Bank’s preference for a weaker franc suggests limited intervention, making short‑term pullbacks attractive buying opportunities.

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