Market Analysis Summary - January 7, 2026

The article provides a detailed analysis of the current state of the forex market as it approaches the Non-Farm Payroll (NFP) announcement scheduled for Friday. The focus is on three major currency pairs: EUR/USD, GBP/USD, and EUR/GBP.

EUR/USD Analysis

The Euro has shown some volatility, initially attempting to rally but ultimately giving back gains. Currently, it is trading around the 50-day Exponential Moving Average (EMA). The market sentiment is described as neutral, with expectations of continued fluctuations as traders await the NFP report. Short-term scalpers may find opportunities in this environment.

GBP/USD Analysis

The British Pound has experienced a slight pullback, falling below the 1.35 level. The analysis suggests a consolidation phase between 1.36 and 1.3450. The Bank of England's gradual rate cuts are noted, and the US Dollar's movements will be influenced by the Federal Reserve's actions, particularly in light of the upcoming jobs report.

EUR/GBP Analysis

The Euro is stabilizing against the British Pound, trading near the 200-day EMA. The article anticipates a potential bounce in this pair, although it suggests that this could be a shorting opportunity. The European Central Bank is expected to maintain its current stance, while inflation concerns in the UK are highlighted. A breakdown below the 200-day EMA could lead to a target of 0.86.

Conclusion

Overall, the forex market is in a state of anticipation as traders prepare for the NFP report. The analysis indicates that while there are opportunities for short-term trading, the market is likely to remain choppy until the report is released.