EURUSD and GBPUSD Analysis Ahead of Fed and Economic Releases
Major currency pairs opened the week under the influence of geopolitical developments and ongoing tariff uncertainty, keeping traders on alert. With central bank decisions and key economic data ahead, market participants are assessing how fundamentals and technicals may shape near-term price action. Read on for a closer look at the factors driving the market and the key levels to watch.
EURUSD Outlook: Geopolitics and Fed in Focus
EURUSD closed last week’s trading session higher amid a tariff clash between the US and Europe related to the Greenland dispute. Despite comments from US President Trump in Davos regarding potential tariffs on European markets, investors are still weighing the impact of rising geopolitical tensions in Europe.
Looking ahead to this week, traders and investors will mainly focus on negotiations between the US and Europe over Greenland’s sovereignty. With the Davos Economic Forum now concluded, markets are expected to begin pricing in recent comments from central bank officials ahead of upcoming meetings and interest rate decisions. The Federal Reserve’s (Fed) rate decision is scheduled for Wednesday, with no change in interest rates expected.
EURUSD: Key Data and Technical Levels
On the economic calendar, Friday’s data includes Eurozone GDP, expected to remain unchanged at 0.3%, and the US Producer Price Index (PPI), forecast to rise by 0.3%.
From a technical perspective, the pair remains positive after closing above 23.6% at 1.1824 last week. Long positions previously took profit near 1.1700, while short positions are now targeting 1.1500.
Current position sentiment stands at BUY 20% – SELL 80%.
EURUSD chart, January 26th, 2026. Source: TenTrade.com
GBPUSD Faces Geopolitical Tensions and Upcoming Fed Decision
GBPUSD ended last week on a firmer note, supported by broad US Dollar softness as tariff-related headlines continued to circulate. While remarks from US President Trump in Davos kept trade risks in focus, sterling traders remained cautious amid lingering geopolitical uncertainty across Europe.
In the week ahead, attention will turn to ongoing discussions between the US and Europe over Greenland’s sovereignty, alongside shifting expectations around monetary policy. With the Davos Economic Forum now behind us, markets are beginning to digest recent central bank commentary ahead of upcoming interest rate decisions. The Fed’s rate announcement on Wednesday is expected to deliver no change in rates.
GBPUSD Key Levels and Friday’s PPI Impact
On the economic calendar, Friday’s spotlight will fall on the US PPI, which is forecast to increase by 0.3%.
From a technical perspective, the pair remains positive despite closing below 23.6% at 1.3641 last week. Short positions are targeting profits near 1.3300, while long positions previously took profit around 1.3600.
Current position sentiment stands at BUY 10% – SELL 90%.
GBPUSD chart, January 19th, 2026. Source: TenTrade.com
Key Takeaways
EURUSD rose last week amid a US-Europe tariff clash over Greenland, with investors cautious about escalating geopolitical tensions.
Traders are focused this week on US-Europe negotiations over Greenland’s sovereignty and the upcoming Federal Reserve rate decision, expected to remain unchanged.
Key economic data includes Friday’s Eurozone GDP at 0.3% and the US Producer Price Index (PPI) forecast to rise by 0.3%.
EURUSD technicals show a positive outlook after closing above 23.6% at 1.1824, with long positions taking profit near 1.1700 and short positions targeting 1.1500.
GBPUSD remains firm supported by US dollar softness, with traders watching geopolitical developments, the Fed rate decision, and technical levels at 1.3600 for longs and 1.3300 for shorts.
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
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