EUR/CAD Poised for Bearish Bets Amid French Political Turmoil and Canadian Stability

The EUR/CAD outlook  currency pair is showing signs of potential bearish movement as the Eurozone grapples with escalating political instability in France, while Canada’s economic indicators suggest relative stability.

French Political Uncertainty

On September 8, 2025, French Prime Minister François Bayrou lost a confidence vote in parliament, deepening political instability in the Eurozone’s second-largest economy. This development raises concerns about potential fiscal challenges and widening bond yield spreads amid persistent budget deficits. Public debt is projected to rise to 117% of GDP by 2025, with deficits significantly exceeding the Eurozone average. Analysts fear that political gridlock may hinder substantial fiscal reforms, potentially affecting investor confidence in the Euro.

Canadian Economic Outlook

In contrast, Canada’s economic indicators are showing signs of resilience. The Canadian labor market data for August indicated a modest increase in the unemployment rate to 7%, with employers adding 7.5K new jobs. While the unemployment rate rose, the labor market remains relatively stable, suggesting that the Canadian economy is not experiencing significant downturns.

EUR/CAD Outlook: Market Implications and Trading Strategy

Given the current economic and political landscapes, the EUR/CAD pair may face downward pressure. The divergence between France’s political instability and Canada’s economic stability could lead to a stronger Canadian Dollar relative to the Euro. Investors may consider positioning for potential bearish movements in the EUR/CAD pair, keeping an eye on further developments in both regions.Understanding the EUR/CAD outlook requires monitoring several key economic indicators. The interest rate differential between the European Central Bank (ECB) and the Bank of Canada (BOC) plays a crucial role in currency valuations. According to recent trading data, carry traders are positioning aggressively, with many entering short EUR/CAD positions based on the current political and economic divergence between the two nations.

US Treasury Secretary Denies Trump Tariffs Are Tax on Americans – Market Implications | ZNJEA Community

Date: September 8, 2025

In a recent interview on NBC’s Meet the Press, U.S. Treasury Secretary Scott Bessent denied that Trump tariffs tax American consumers directly. His claim contradicts former President Donald Trump’s widely-debated position on whether tariffs act as taxes. This statement comes amid concerns from major companies, including Nike and John Deere, which warned that tariffs could cost billions of dollars annually.

Bessent’s Defense: Economy Claims

The Reality: Economic Data

The Treasury Secretary also commented on ongoing legal challenges. The administration is appealing a federal court ruling that Trump exceeded his authority with broad tariffs, including extreme cases like a 50% tariff on Lesotho. The Supreme Court will hear the case in early November. If the court overturns the ruling, the government will face substantial refund obligations.

Former Treasury Secretary Janet Yellen, however, has consistently warned that tariffs function as hidden taxes, raising costs for households and businesses and potentially destabilizing the global economy.

Market Implications for Traders:

  • Stocks: Domestic manufacturers could benefit, while import-heavy companies may face higher costs.
  • Forex: The USD could strengthen if tariffs are perceived as non-disruptive.
  • Commodities: Gold and metals may see volatility amid economic uncertainty.
  • Bonds: Treasury yields may fluctuate depending on growth expectations.

For traders and investors, keeping an eye on economic data, corporate earnings, and court decisions will be key to navigating the market amid tariff uncertainty.

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Gold Price Updates – Technical Outlook & Scenarios for September 8, 2025 | ZNJEA Community

Gold has been one of the most closely watched assets in recent weeks, with traders and investors focusing on key technical signals across higher timeframes (HTF) and multiple timeframes (MTF). As of today, September 8, 2025, the broader trend for gold remains bullish, supported by both macroeconomic fundamentals and technical structures. However, price action is currently at an important juncture, and traders should be prepared for two potential scenarios.

📈 Current Trend: Gold Bullish on HTF and MTF

Gold continues to hold a bullish structure on higher timeframes (HTF) and multiple timeframes (MTF). The market recently confirmed a TRAP pattern on both HTF and MTF following the Non-Farm Payroll (NFP) release. This reaction set the stage for a retracement inside the ongoing bullish leg on MTF.

At this stage, traders are closely monitoring liquidity zones and order flow to anticipate the next major move.

âš¡ Two Possible Scenarios for Gold

Based on current market structure, we can identify two main scenarios that could play out in the short term:

  1. Continuation of the Bullish Leg (Primary Scenario)
    • Gold could provide confirmation signals within the extreme of its 15-minute leg.
    • If price action shows a double liquidity grab of major levels, this would validate a bullish continuation.
    • In this case, gold is likely to resume its upward order flow, targeting higher resistance levels and liquidity pools.
  2. Deeper Retracement Before Continuation (Alternative Scenario)
    • If gold breaks below its 15-minute low, this would open the path toward deeper liquidity areas located further south.
    • This move would be a deeper retracement before any potential continuation higher.
    • Traders should watch for major liquidity zones below, which could act as strong reversal points for a new bullish wave.

🔔 Trading Strategy and Alerts

My alerts are already in place, and I am waiting for price to return to my marked levels before considering a new position. Entering the market without proper confirmations could expose traders to unnecessary risks, especially in a highly volatile asset like gold.

Patience is key—waiting for clear liquidity grabs and order flow confirmation will ensure that entries align with institutional footprints rather than random price action.

📊 Key Takeaways for Traders (September 8, 2025)

  • Trend remains bullish across HTF and MTF.
  • Primary scenario: bullish continuation after liquidity grab on the 15-minute chart.
  • Alternative scenario: deeper retracement toward lower liquidity pools.
  • Trading approach: wait for confirmations before entering.

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We provide market updates, smart money concepts, and practical strategies to help traders grow consistently.

Gold remains a fascinating asset to trade, offering both volatility and opportunity. With the right approach, discipline, and risk management, traders can take advantage of these moves while staying protected against market traps.

👉 Stay tuned for the next update from ZNJEA, and trade smart!

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