Global Market Snapshot 19th May 2025

Weekly Market Review & Outlook

Last week, optimism returned to financial markets as the ceasefire in U.S.-China tariffs and the easing of trade tensions helped strengthen the U.S. dollar and supported Wall Street’s sustained rally. However, a new wave of uncertainty emerged in the global financial landscape. On Friday, shortly after U.S. markets closed, credit rating agency Moody’s downgraded the U.S. sovereign credit rating from Aaa to Aa1, stripping the United States of its long-standing top-tier credit status. Although the immediate market reaction was subdued due to the timing of the announcement, this downgrade may trigger broader repercussions this week—putting downside pressure on the U.S. dollar and Treasury yields, and introducing fresh volatility into the global market outlook.

Weekly Trend Forecast

EUR/USD
Last week, the euro dipped sharply to a low of 1.1062 before rebounding and closing near 1.1163.

• Outlook: Neutral
  
• Support: 1.1039 — holding this level may reignite the rebound trend.
  
• Resistance: 1.1294 — a breakout here could open the path to retest 1.1571.
  
• A break below 1.1039 would shift the trend to bearish.
  

USD/JPY
The pair reached a high of 148.68 early last week before retreating in a choppy, downward pattern.

• Outlook: Neutral
  
• Support: 142.33 — a break below could expose 139.89 as the next key level.
  
• Resistance: 148.68 — a break above would turn the trend bullish, with upside potential toward 151.24.
  

GBP/USD
The pound dropped sharply to 1.3139 before rebounding strongly by week’s end.

• Outlook: Neutral
  
• Support: 1.3139 — a breakdown here would indicate that the correction from 1.3444 is continuing.
  
• Resistance: 1.3444 — a breakout could confirm the start of a broader uptrend.
  

USD/CHF
After peaking at a temporary high of 0.8475, the pair trended lower in a consolidative pattern.

• Outlook: Range-bound
  
• Support: 0.8183 — a break below this level could trigger a further decline toward 0.8036.
  
• Resistance: 0.8475 — sustained trading above this level could target the 0.8582 area.
  

AUD/USD
The Aussie dollar dipped early in the week before recovering, staying within a broad consolidation range.

• Outlook: Neutral
  
• Support: 0.6322 — holding above this level supports further upside potential. A break below could trigger a retracement to 0.5913.
  
• Resistance: 0.6516 — a breakout confirms continuation of the uptrend from 0.5913, with scope to test 0.6688.

USD/CAD
The pair rose to a temporary high of 1.4014 before pulling back into a consolidation phase.

• Outlook: Neutral
  
• Support: 1.3749 — holding above this level suggests potential for another bullish leg.
  
• Resistance: 1.4014 — a breakout would resume the rebound from 1.3749, possibly targeting 1.4275.