Forex Market Update: Key Movements in USD Pairs and Precious Metals

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Day Trading: Day trading is another strategy that involves monitoring short-term price movements, where traders seek to profit from minor fluctuations. Traders may use the 3 PIP target to enter or exit positions based on short-term trends.

USD/CHF and USD/CAD Dynamics

The USD/CHF pair has recently exhibited a medium-term bearish trend for the Swiss Franc, continuing its decline that began last Wednesday. As of today's trading in Asia, the Franc weakened further by 0.3%, marking it as the poorest performer among the major currencies against the US dollar. Conversely, the USD/CAD pair has seen a notable increase, reaching a two-month high by surpassing the 1.3870 level. This rise reflects a robust gain of over 2% in the US dollar against the Canadian dollar within a span of just ten days.

Gold and Silver Price Movements

The precious metals market is facing significant influences from the US dollar's strength and upcoming economic data. Gold prices have been under pressure, notably closing the week near $2,290 per ounce, which represents the weakest weekly performance since late June. This trend is primarily driven by a stronger US dollar and tightening US trade policies. On the other hand, silver maintains support at $36.50 as the market anticipates the US jobs data, with the strong dollar capping any potential gains.

Forecasts and Economic Data Impacts

The anticipation of the Non-Farm Payroll (NFP) report has led to a surge in the US dollar, affecting various currency pairs including GBP/USD and EUR/USD, which are facing downward pressure. Both gold and silver prices are also influenced by this anticipation, with traders keenly watching for signals that could indicate the next major price movements for these metals. Additionally, the Pound to Canadian Dollar rate is eyeing upcoming manufacturing PMI data from the UK and Canada, which could induce further volatility in this exchange rate.