EUR/USD
EUR/USD advances for the third consecutive day, trading around 1.0860 during the Asian session on Monday. The analysis of the daily chart shows that the pair is positioned within a descending channel, suggesting a bearish bias.
GBP/USD
The GBP/USD pair trades on a stronger note around 1.2875 during the early European trading hours on Monday. The softer Greenback amid the hope of an interest rate cut by the US Federal Reserve in September provides some support to the major pair.
USD/JPY
The Japanese Yen (JPY) continues to gain ground on Monday as traders remain cautious ahead of the Bank of Japan’s (BoJ) policy meeting on Wednesday which could see a potential rate hike. Markets are betting that the BoJ may lift rates by 10 basis points to 0.1% and is widely expected to announce its bond purchase tapering plans.
AUD/USD
The Australian Dollar (AUD) extends its gains against the US Dollar (USD) for the second session on Monday. This upside is attributed to the hawkish sentiment surrounding the Reserve Bank of Australia’s (RBA) policy stance. Unlike other major central banks, the RBA is expected to delay easing its policy tightening due to persistent inflationary pressures and a tight labor market.
NZD/USD
The NZD/USD pair attracts some dip-buyers near the 0.5880 area during the Asian session on Monday amid a softer US Dollar (USD), albeit lacks bullish conviction. Spot prices currently trade around the 0.5900 round figure and remain well within the striking distance of the lowest level since early May touched last Thursday.
USD/CAD
USD/CAD pulls back from an eight-month high of 1.3849 recorded in the previous session, trading around 1.3820 during the Asian hours on Monday. The rise in Oil prices supports the Canadian Dollar (CAD) and puts downward pressure on the USD/CAD pair.
USD/CHF
In Friday’s trading session, the USD/CHF managed to improve, closing up by 0.15% at around 0.8830 against the backdrop of fluctuating Personal Consumption Expenditures (PCE) numbers released by the United States. After consistent declines, this upward move gives the bears some breathing room.
CRUDE OIL
Oil prices were flat in Asian trade on Monday as a missile strike on an Israel-occupied territory ramped up concerns over a greater conflict with Lebanese group Hezbollah.
Gold price is building on its previous recovery early Monday, having defended the key support at $2,360 on a weekly closing basis. Gold buyers fight back control heading into the critical central banks’ bonanza week, with the US Federal Reserve (Fed) – the main event risk for the bright metal.
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