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Major Currency Pair Outlook: Macro and Technical Conditions Align in Favor of Dollar Strength.

Olusegun Enujowo

Analyst

EURUSD

The Eurozone is growing modestly, with inflation still a bit sticky, keeping the ECB cautious but not aggressively hawkish. The U.S. still holds the yield advantage, so fundamentals lean in favor of a stronger dollar unless the ECB surprises with firmer tightening talk.

Technical touch: Price still struggles to break above the 1.162–1.170 resistance area, and repeated failures there align with a mild bearish macro tilt towards 1.150 area unless strong Euro data appears.


GBPUSD

The UK economy remains soft—slow growth, consumer pressure, and the likelihood of BoE easing later in 2025. Inflation risks linger, but monetary policy is expected to gradually loosen, which weighs on GBP.

Technical touch: The pair is hovering around a key neckline at 1.305; if it breaks, it confirms the longer-term lower-high structure pointing downward towards the 1.330 area.


USDJPY

Japan’s inflation has improved, but the BOJ is still far behind global tightening cycles, keeping the interest-rate gap wide in favor of USD. BOJ normalization is slow, so the dollar remains favored unless Japan delivers a hawkish surprise.

Technical touch: Uptrend remains intact with buyers stepping in around 154–155; momentum targets remain toward 157–158.

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