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

Scalping: Scalping is a trading style that focuses on profiting from tiny price movements. In this strategy, traders look for small profits in a very short time frame, and a 3 PIP move can be a target. This type of trading requires precise execution and quick decision-making.
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/JPY and USD/CNH Dynamics

The USD/JPY pair saw a notable rise, moving above 147.30 amid lower GDP expectations in Japan, reflecting a shift in risk appetites and economic forecasts. Similarly, the USD/CNH pair has shown stability, remaining under the key resistance level of 7.2000 as China's trade activity surged ahead of new tariff implementations, suggesting a consolidation phase for the US Dollar against the Chinese Yuan within the ranges specified by UOB Group analysts.

Gold and Silver Price Movements

Gold has recently experienced a significant uptick, breaking key resistance levels fueled by increased safe-haven demand amid fresh US tariff packages and rate cut expectations. Concurrently, silver also rallied, supported by dovish Federal Reserve expectations and weak US dollar, with prices eyeing the $39.53 mark. Both metals have been influenced by geopolitical tensions and economic uncertainties, driving investors towards safe-haven assets.

GBP/USD and EUR/USD Outlook

The GBP/USD pair has been testing key resistance levels, with market participants eyeing the upcoming Bank of England (BoE) monetary policy decisions. The EUR/USD pair, on the other hand, has shown a robust increase since the start of August, influenced by various economic indicators and policy expectations. Both currency pairs are at critical junctures, with potential impacts from central bank decisions and economic data releases.

AUD/USD and NZD/USD Trends

The AUD/USD pair surged to near 0.6540 following positive Australian trade balance data, indicating a strong performance by the Australian Dollar. The NZD/USD, however, faces resistance nearing the 0.5960 level, with expectations of range-bound trading in the near term as analyzed by UOB Group.