The forex market is currently marked by mixed sentiment, influenced by weak US and New Zealand employment reports, uncertainties around central bank policies, and geopolitical tensions. Key currency pairs reflect this cautious environment: USD/JPY is bearish due to weak US jobs and yen pressure, NZD/JPY is neutral to bearish amid risk-off sentiment, GBP/NZD and EUR/NZD remain neutral awaiting New Zealand jobs data, and NZD/CAD is slightly bearish due to weak New Zealand economic signals offset by Canadian support. Traders should adopt caution, closely monitor economic data releases and central bank decisions, use protective strategies like stop-loss and hedging, and maintain balanced exposure during this period of elevated volatility and risk.
This scenario aligns with recent market behaviour showing dips in US dollar strength and risk aversion across NZD pairs, reflecting sensitivity to employment and policy updates