Forex Weekly Forecast: US Dollar Strength, UK Inflation and Silver Under Pressure

Important Economic Events and Data

Canada CPI, y/y (September) —— Monday

Canada CPI, y/y (August) increased by 3.0%, which was in line with the previous value and the forecast, according to the data from the Statistics Canada.

Gasoline prices rose narrowly, and food inflation increased at a slower pace, putting pressure on CPI, the data showed. However, tourism cost and rents rose, offsetting the effect.

Energy prices raised overall inflation to about 3%, but the price pressure was under control, the BOC said recently. Meanwhile, geopolitical tension and trade situation put upward risks on the inflation.

UK CPI, y/y (September) —— Wednesday

UK CPI, y/y (August) increased from 2.9% to 3.1%, which marked the highest level since March, according to the data from the ONS (Office for National Statistics). US core CPI, y/y (August) was 2.6%, which was in line with the forecast and the previous value.

As the situation in the Middle East raised energy prices, the inflation jumped, according to the analysis.

As core inflation is stable, the BOE may suspend increasing the interest rate in the short term, the analysis said.

View economic data and events in details

Major Financial Instruments

USDX——the Chart of the Week

Last week, as US CPI (September) was strong, the expectation that the Fed will increase the interest rate in October rose, boosting the USDX to an 18-month high. On the chart of the week, the USDX rose steadily. The bullish market trend prevailed in the short term. Investors should focus on whether the USDX will break through the support at 101.6. It will jump with potential resistance at 104.6 if it retreats but is stable above 101.6.

the Chart of the Week

TECH100——the Chart of the Week

Last week, as the expectation that the Fed will increase the interest rate climbed, TECH100 fell from a record high and broke below the 30000 mark, ending a four-week increase. On the chart of the week, TECH100 fell from a high level. It is likely to retreat in the short term. Investors should focus on whether TECH100 will break through the resistance at 30000. It will decline with potential support at 28750 if it rebounds but is capped at 30000.

the Chart of the Week

XAGUSD——the Chart of the Week

Last week, as the expectation that the Fed will increase the interest rate rose, XAGUSD was capped and hit the lowest level since July 2026. On the chart of the week, XAGUSD was prone to fluctuation and fell. The bearish market trend prevailed. Investors should focus on whether XAGUSD will break through the resistance at 58.5. It will fall with potential support at 54.7 if it rebounds but is capped at 58.5. and it will continue declining if it breaks below 54.7.

the Chart of the Week

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Due to passage of time and market volatility, some of the above patterns observed may no longer be valid.