FxAnalysis

The US Dollar (USD) has regained its shine this week, allowing the favourable macro picture to remain unchanged.

The US Dollar, having weathered last week’s dip, has regained its composure. It’s now gained ground, propelled by renewed momentum. This shift comes as Middle Eastern tensions escalate, and worries persist regarding the Strait of Hormuz and its potential impact on worldwide energy markets.

The EUR/USD pair ends the week around 1.1530, barely below its opening but off the peak at 1.1640. Widespread optimism on Monday was diluted as days went by, and financial markets moved once again on war-related headlines.

USD/JPY is holding near a major ceiling around 160, with 158 acting as support and a break above 160.40 potentially opening a much bigger upside move.

EUR/USD is stuck in a tight 1.15–1.16 range, with sellers fading rallies near resistance as interest rate differentials and safety flows keep pressure on the euro.

GBP/USD is trading near the middle of its 1.3250–1.35 range, with the 200-day EMA marking fair value as short-term traders continue to play the chop.