EUR/USD & GBP/USD: Weekly Outlook

EUR/USD is finding support as falling oil prices improve the outlook for energy-importing economies, but the US dollar has remained more resilient than expected as traders continue to focus on Federal Reserve policy and strong US economic data. While downside risks have eased, the Fed remains the key near-term catalyst.

Technically, EUR/USD is expected to challenge the 1.1625 resistance, with a break above 1.1670 to 1.1700 strengthening the bullish outlook. A move back below 1.1500 now appears less likely unless geopolitical risks flare up again.

EUR/USD Daily Chart

GBP/USD is trading cautiously ahead of this week's Bank of England meeting and key UK inflation data. While elevated inflation could support the pound if the BoE maintains a hawkish tone, slowing economic growth and a softer labour market continue to weigh on sentiment.

From a technical perspective, GBP/USD is consolidating around the 200-day SMA, with buyers needing a move above 1.3475 to improve the outlook and target higher levels. On the downside, a break below 1.3310 stands as important support.

GBPUSD Daily Chart