FxAnalysis

The Pound Sterling (GBP) recovery gathered steam against the US Dollar (USD), driving GBP/USD to fresh five-week highs above the 1.3350 level.

The USD/JPY pair prolongs its recent well-established downtrend for the third consecutive day and drops to a three-week low during the early part of the European session on Friday.

Following the bullish action seen in the first half of the week, EUR/USD reversed its direction and closed in negative territory on Thursday. The pair holds its ground early Friday and trades marginally higher on the day, above 1.1650.

USD/CHF trades around the key 0.80 level, with structural support below and the potential for Swiss National Bank intervention helping limit downside ahead of next week’s Fed rate decision.

USD/JPY faded after an early rally on Thursday as traders priced in a Fed rate cut, though the broader uptrend remains intact with key support near ¥153 and rising Japanese yields creating near-term uncertainty.

EUR/GBP gave up early gains on Thursday, failing at the 50-day EMA as pound strength and a potential topping pattern suggest a move toward 0.87 or even 0.86.