Capital Street Fx

European markets opened with cautious sentiment as persistent dollar strength continued to pressure currencies, commodities, and risk assets. EUR/USD remained near multi-month lows despite rising expectations of further ECB tightening, while sterling weakened after disappointing UK PMI data signaled slowing economic momentum. Equity performance stayed mixed, with the DAX finding support from strong corporate developments even as broader markets remained defensive. Brent crude eased as supply concerns softened, while gold and silver struggled under higher-for-longer interest rate expectations. In crypto markets, Ethereum tested key technical levels as investors balanced macro uncertainty with weakening risk appetite ahead of the US session.

GBP/USD remains under sustained selling pressure as the pair trades close to an important technical support zone around 1.3155. After falling sharply from April highs, market sentiment continues favoring the US dollar due to widening policy differences between the Federal Reserve and the Bank of England. Technical indicators show a bearish structure with price remaining below major moving averages and momentum indicators staying weak.

The next major market trigger comes from US economic data, especially the PCE Price Index and final GDP estimate. Strong inflation or growth numbers could increase expectations for tighter Federal Reserve policy and push GBP/USD lower toward 1.3097 and potentially 1.3000. A weaker-than-expected inflation print may support a short-term recovery, although upside momentum remains limited unless resistance levels are reclaimed.

Traders are expected to focus on confirmation signals and risk management due to expected volatility during economic releases.

Highlights: • GBP/USD trades near critical 1.3155 support zone • Technical structure remains bearish • US PCE data expected to drive volatility • Downside targets seen at 1.3097 and 1.3000 • Resistance remains around 1.3250 Read the full Forex and CFD Market Analysis :

Asian markets rallied strongly on June 25 as renewed confidence in the artificial intelligence and semiconductor sectors boosted investor sentiment. Japan’s Nikkei 225 gained more than 2%, while South Korea’s KOSPI surged 5.5% following positive developments from major chipmakers, easing concerns after recent technology-sector volatility. Despite the equity rebound, the US dollar remained the dominant market force, with the Dollar Index hovering near a 13-month high. The stronger greenback pushed USD/JPY close to levels not seen since 1986, increasing speculation about possible intervention by Japanese authorities.

Commodity markets remained under pressure as gold slipped below the key $4,000 mark for the first time in 2026, while silver extended its sharp monthly decline. Crude oil fell to a three-month low amid improving supply expectations, and NZD/USD dropped to a seven-month low. Cryptocurrency markets also struggled, with DOGE and XRP posting weekly losses. Investors are now focused on the upcoming US Core PCE inflation data, which could significantly influence Federal Reserve policy expectations and drive the next major move across global markets.

Key Highlights:

Nikkei +2%, KOSPI +5.5%

Dollar near 13-month high

Gold falls below $4,000

Oil hits 3-month low

Yen nears 1986 lows

Focus shifts to US Core PCE data

Read the full analysis - Forex and CFD Market Analysis