Forex Market Daily Update: Currency Pair Movements and Precious Metals Outlook

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/INR Analysis

The USD/JPY pair witnessed a significant downturn, breaking below the 147.00 mark and continuing its descent toward 146.20. The market is currently testing support near 145.70, where stability above this level might foster a potential rebound. Concurrently, the USD/INR pair showed resilience, with the Indian Rupee appreciating slightly against the US Dollar as it opened near 87.55. The pair's movement reflects growing expectations for the Federal Reserve to re-engage in monetary expansion at their upcoming September policy meeting, following a pause post-December 2024 rate cuts.

GBP/USD and EUR/USD Dynamics

Following impressive Q2 GDP data, GBP/USD managed to approach its resistance at 1.3585, although it now faces potential corrections with supports identified at 1.3485 and 1.3390. The EUR/USD pair also performed robustly, reaching a target of 1.1720 with resistance near 1.1790-1.1810 and support at 1.1595-1.1610, suggesting a possible trading zone formation. Both pairs are being supported by a dovish outlook from the Federal Reserve, as indicated by recent US inflation data which has led to a depreciation in the US Dollar and lifted these currency pairs nearer to key resistance levels.

Gold and Silver Market Outlook

Gold prices have maintained stability above $3,337, while silver prices hover around $38.15, as market participants balance strong equity performances against expectations of Federal Reserve easing. This dynamic is further complicated by global risk sentiment, influenced by geopolitical events and economic data. Meanwhile, in specific markets like Saudi Arabia and the Philippines, gold prices have seen an uptick, reflecting localized demand and market sentiment.