UOB analysts Quek Ser Leang and Peter Chia note that AUD/USD surprised to the upside, reaching 0.7143 and closing around 0.7127. Intraday, they see room for a test of 0.7150 before pullback risks increase, with 0.7175 as the next resistance. 🔗 Source 💡 DMK Insight AUD/USD’s recent surge to 0.7143 is a key moment for traders to watch. The pair’s ability to maintain above 0.7127 suggests bullish momentum, but the analysts warn of potential pullback risks as it approaches 0.7150. If it breaks through 0.7175, we could see further gains, but traders should be cautious of overextending positions. The broader context of rising commodity prices and a strong Australian economy could support this rally, but any shifts in U.S. economic data might quickly change the narrative. Keep an eye on the daily chart for signs of exhaustion or reversal patterns as we approach these resistance levels. On the flip side, if the pair fails to hold above 0.7127, it could signal a bearish reversal, leading to a test of lower support levels. Watch for volatility around upcoming economic releases that could impact both currencies. 📮 Takeaway Monitor AUD/USD closely; a break above 0.7150 could lead to 0.7175, but watch for pullback risks if it fails to hold above 0.7127.

The EUR/GBP cross pares recent losses near 0.8710 during the early European session on Thursday. The Pound Sterling (GBP) edges lower against the Euro (EUR) after the release of UK growth numbers. 🔗 Source 💡 DMK Insight The EUR/GBP cross is stabilizing around 0.8710, but here’s why that matters now: the recent UK growth figures are weighing on the Pound, suggesting potential volatility ahead. With the GBP under pressure, traders should keep an eye on the 0.8700 support level. A break below could trigger further selling, while a rebound might indicate a short-term buying opportunity. The broader context of Eurozone economic resilience could also play a role, particularly if the ECB signals a more hawkish stance in upcoming meetings. Don’t overlook the correlation with other GBP pairs, as shifts in sentiment could ripple across the market, impacting assets like GBP/USD and GBP/JPY. So, watch for any news from the UK that could shift sentiment, especially regarding inflation or employment data. The next few sessions could be pivotal for positioning ahead of potential swings. 📮 Takeaway Monitor the 0.8700 support level on EUR/GBP; a break could lead to increased selling pressure on the Pound.

GBP/JPY remained in the negative territory after paring daily losses, trading around 208.60 during the early European hours on Thursday. 🔗 Source 💡 DMK Insight GBP/JPY’s struggle around 208.60 signals potential volatility ahead. The pair’s recent movement indicates a lack of bullish momentum, especially after paring losses. Traders should note that this level has been a pivot point in the past, and a sustained break below could trigger further selling pressure. On the flip side, if it manages to reclaim ground above 209.00, we might see a short-term rally. Keep an eye on broader market sentiment, particularly any shifts in UK economic data or Bank of Japan policy, as these could amplify price movements. For those trading this pair, monitoring the 208.00 support level will be crucial. A break below could lead to a test of lower support zones, while a bounce could present a buying opportunity, especially if confirmed by bullish momentum indicators on the daily chart. 📮 Takeaway Watch for GBP/JPY around 208.00; a break could signal further downside, while a bounce above 209.00 may open up buying opportunities.

Standard Chartered’s Steve Englander and Dan Pan highlight that the latest US Nonfarm Payrolls report showed an unexpected labour-market pick-up, with accelerating job gains and a lower unemployment rate. 🔗 Source 💡 DMK Insight The unexpected rise in US Nonfarm Payrolls is shaking up market expectations right now. With job gains accelerating and the unemployment rate dipping, traders need to reassess their positions, especially in forex and equities. This could signal a stronger economy, potentially prompting the Fed to reconsider its interest rate strategy. If the labor market continues to strengthen, we might see upward pressure on the dollar, which could impact currency pairs like EUR/USD and GBP/USD. Keep an eye on the 1.10 level for EUR/USD; a break below could trigger further selling. But here’s the flip side: if this data leads to fears of aggressive rate hikes, volatility could spike across markets. Traders should monitor the upcoming FOMC meeting for any hints on monetary policy shifts. The real story is how this labor data could ripple through sectors sensitive to interest rates, like real estate and utilities. Watch for reactions from institutional players who might reposition ahead of these potential changes. 📮 Takeaway Watch the 1.10 level on EUR/USD; a break below could signal further downside as the labor market strengthens.

The UK economy expanded at a quarterly rate of 0.1% in the three months to December 2025, following a 0.1% growth in the third quarter (Q3). 🔗 Source 💡 DMK Insight The UK economy’s sluggish growth of 0.1% in Q4 2025 raises concerns for traders: This tepid expansion, mirroring Q3’s performance, suggests underlying weaknesses that could impact the GBP and related assets. Traders should keep an eye on how this affects Bank of England policy, especially if inflation remains stubbornly high. A lack of robust growth could lead to a more dovish stance, potentially weakening the pound further. Additionally, this economic backdrop may influence the forex market, particularly against the USD and EUR. If the trend continues, we might see increased volatility in GBP pairs, especially if key support levels are breached. Watch for any shifts in market sentiment around the next BoE meeting, as traders reassess their positions based on economic indicators. The real story is whether this growth can sustain itself or if it signals a broader economic malaise. 📮 Takeaway Keep an eye on GBP pairs; a sustained lack of growth could trigger volatility and impact trading strategies around the next BoE meeting.

Here is what you need to know on Thursday, February 12: 🔗 Source

Scotiabank’s Analyst Team reports the Euro is modestly higher versus the Dollar but lagging other G10 currencies, with sentiment and options pricing favouring upside protection. 🔗 Source 💡 DMK Insight The Euro’s slight uptick against the Dollar is noteworthy, but its underperformance compared to other G10 currencies raises questions. Traders should pay attention to the sentiment shift and options pricing that suggests a preference for upside protection. This could indicate that market participants are bracing for potential volatility or a bullish reversal in the Euro. If the Euro can break above key resistance levels, it might catch up with its G10 peers, but until then, caution is warranted. Keep an eye on the broader economic indicators, especially any shifts in U.S. monetary policy that could impact the Dollar’s strength. The real story is how the Euro’s lagging performance could affect correlated assets, particularly Euro-denominated commodities or equities. Watch for any significant economic data releases or central bank comments that could shift sentiment quickly. A sustained move above recent highs could signal a stronger bullish trend, while failure to do so might lead to further consolidation or downside risk. 📮 Takeaway Monitor the Euro’s resistance levels closely; a break could signal a shift in momentum against the Dollar, impacting related assets.

Deutsche Bank analysts note that Brent has extended gains as markets react to rising geopolitical risks around Iran and fresh comments from President Trump after his meeting with Israel’s Prime Minister. 🔗 Source 💡 DMK Insight Brent’s recent gains highlight a critical response to geopolitical tensions, and here’s why that matters: Rising geopolitical risks, particularly concerning Iran, often lead to increased volatility in oil markets. Traders should be aware that Brent’s price movements can be influenced by not just supply and demand fundamentals but also political narratives. With President Trump’s comments following his meeting with Israel’s Prime Minister, we might see further fluctuations as markets react to perceived threats or diplomatic shifts. This could affect not only Brent but also related assets like WTI and energy stocks. Look for key resistance levels in Brent; if it breaks through recent highs, it could signal a sustained rally. Conversely, if tensions ease or if there’s a diplomatic breakthrough, we might see a pullback. Keep an eye on the daily charts for any breakout patterns or reversals, and monitor news cycles closely for any sudden developments that could sway market sentiment. 📮 Takeaway Watch Brent closely; a break above recent highs could signal a sustained rally, while easing tensions might lead to a pullback.

The Aussie Dollar (AUD) pulled back from three-year highs at 0.7147 as the US Dollar (USD) picked up following upbeat US Nonfarm Payrolls data. 🔗 Source 💡 DMK Insight The AUD’s retreat from 0.7147 signals a critical moment for traders: the USD’s strength is back in play. With the recent US Nonfarm Payrolls data showing positive job growth, the market’s focus shifts to potential Fed rate hikes, which typically bolster the USD. This dynamic could lead to further downside for the AUD, especially if it breaks below key support levels. Traders should keep an eye on the 0.7100 mark as a psychological barrier; a drop below could trigger more selling pressure. Additionally, watch for any shifts in commodity prices, particularly iron ore, which heavily influences the AUD’s performance. If the USD continues to gain traction, it might also affect related pairs like AUD/NZD, amplifying volatility across the board. But here’s the flip side: if the AUD manages to hold above 0.7100, it could set up a potential rebound, especially if Australian economic indicators surprise positively. So, keep your charts updated and be ready to react to these levels. 📮 Takeaway Watch the 0.7100 support level on the AUD; a break could lead to further declines, while a hold may signal a rebound opportunity.