Monetary policy is the way central banks manage their economies. While each central bank has its own goals based on its country’s needs, most focus on two main objectives: keeping prices stable and supporting economic growth. Central banks control interest rates, inflation, money supply, bank reserves, and lending conditions to guide economic activity. There are two main directions monetary policy can take. Contractionary policy reduces the money supply or raises interest rat

Japanese markets turned volatile after reports said Prime Minister Sanae Takaichi expressed concerns about further rate hikes to BOJ Governor Kazuo Ueda. This created uncertainty around the Bank of Japan’s policy path. At the same time, China announced new export restrictions on dual-use goods and rare earth materials to selected Japanese firms, adding geopolitical pressure and further weakening the yen. Rate expectations shifted quickly. Chances of a March hike dropped to be

GBP/USD formed a falling wedge early in 2026 and broke out strongly, rallying to fresh four-year highs. The move was partly driven by weakness in USD/JPY, but as the US dollar recovered, the pair pulled back. Since those highs, another falling wedge has developed, similar to the current structure in EUR/USD. This keeps the door open for upside potential if the dollar weakens again. Recently, 1.3500 provided support and triggered a bounce, while 1.3568 acted as strong resistan

Gold has regained strength after breaking above 5100, shifting the near-term bias back to bullish. The move is supported by renewed safe-haven demand and fresh pressure on the US dollar following the Supreme Court ruling against Trump’s tariffs and the announcement of new global levies under Section 122. Technically, the breakout above 5100 is important and gives bulls a clear level to defend. Momentum indicators such as RSI and MACD are supportive, but short-term signals sho

EUR/USD is sitting in a descending triangle, with momentum indicators slowly weakening. RSI is just below 50, and MACD has rolled over but is not yet negative, showing neutral to slightly bearish momentum. A recent doji candle reflects market indecision. The key level to watch is the 50-day moving average near 1.1750. A clear break and close below this zone would strengthen the bearish case, opening the door toward 1.1700 and possibly the 200-day moving average. A clean break

The broader uptrend in AUD/JPY is still intact, and dip buyers have stepped in each time support was tested. Risk appetite has been a key driver, sometimes even more important than rate expectations. AUD/JPY bounced firmly from trend support, holds above the 50- and 200-day moving averages, and the RSI indicator supports further upside. A move above 109.66 could open the door back toward 110.80 and trend continuation. Price is testing the uptrending channel started in October

The US dollar jumped after the FOMC minutes showed a hawkish tone. Officials warned that rates could rise again if inflation stays high. From a technical perspective, the US Dollar Index is showing improving upside momentum after a bullish false break below 96 on the weekly chart. However, it is approaching a critical resistance cluster around 97.77 to 98.00, which includes prior swing levels and the 20- and 50-day moving averages. A break above this zone could trigger deeper

UK inflation has cooled, with CPI falling from 3.4% to 3.0%, which has revived expectations that the Bank of England could start cutting rates as early as March 2026. At the same time, rate cut optimism in the UK is likely to clash with ongoing rate hold sentiment from the Federal Reserve, creating a fragile environment for GBPUSD around the 1.35 area. GBPUSD is moving in a downtrend channel, reversing from a multi-year high of 1.38700. Technically, GBPUSD is still holding ab

Gold momentum has shifted to sellers, with futures down 5.6% from last week’s highs and showing multiple bearish signals. Technically, the sell-off has been controlled, not aggressive. Gold is still moving in a slight uptrending channel. It will keep moving in this channel as long as it stays above this level, which is shown in the graph. The level is 4690. This level will shift upward as the channel moves upward. A break below this lower line of the channel will confirm agg

It has been a bearish week for USD/JPY, even though conditions normally support upside. This suggests positioning may be crowded and starting to unwind, meaning traders could be closing carry trades rather than adding new ones. After the election win by Sanae Takaichi and her Liberal Democratic Party, markets expected USD/JPY to rise. The pair initially moved higher but quickly reversed. A strong NFP report from the United States also caused a short spike higher, but again, s