EUR/USD
EUR/USD is sitting at year-to-date (YTH) highs near 1.1050 in the European session on Monday. The softer US Dollar, amid heightening Fed rate cut expectations, upbeat risk tone and USD/JPY sell-off, underpins the pair. The focus stays on Fedspeak, in the face of a data-sparse calendar.
GBP/USD
The British Pound (GBP) continues to draw support from last week’s relatively stronger UK macro data, which pointed to a still resilient economy and might have dashed hopes for another interest rate cut by the Bank of England (BoE) in September. The US Dollar (USD), on the other hand, languishes near its lowest level since January touched earlier this month amid dovish Federal Reserve (Fed) expectations and turns out to be another factor acting as a tailwind for the GBP/USD pair.
USD/JPY
USD/JPY is extending declines toward 145.00 in the European morning on Monday. The pair remains heavy, as divergent policy outlooks between the Fed and the BoJ come to the fore ahead of the Fed Minutes and Powell’s speech due later this week.
AUD/USD
The Australian Dollar (AUD) continues its winning streak for the third consecutive day against the US Dollar (USD) on Monday. The upside of the AUD/USD pair could be attributed to improved risk sentiment, along with the hawkish mood surrounding the Reserve Bank of Australia (RBA) regarding its policy outlook. Investors will be closely watching the RBA Meeting Minutes and the People’s Bank of China’s (PBoC) Interest Rate Decision on Tuesday.
NZD/USD
The New Zealand Dollar (NZD) gathers strength near one-month high on Monday. The weaker US housing data on Friday has added to concerns over the US economy’s strength, especially after recent softer inflation and labor reports. Traders place more bets on interest rate cuts from the US Federal Reserve in September, which undermine the US Dollar (USD) and create a tailwind for NZD/USD.
USD/CAD
The USD/CAD pair extends last week’s breakdown momentum and remains under some selling pressure for the second straight day on Monday. The downward trajectory drags spot prices to over a one-month low, around the 1.3665-1.3660 area, during the Asian session and is sponsored by the bearish sentiment surrounding the US Dollar (USD).
USD/CHF
USD/CHF continues to lose ground, trading around 0.8640 during the Asian session on Monday. The US Dollar (USD) continues to weaken following dovish comments from Federal Reserve (Fed) officials, raising bets for an interest rate cut by the central bank in September and undermining the USD/CHF pair.
CRUDE OIL
Oil prices eased in early Asian trading on Monday as fears of weaker demand in top oil importer China weighed on market sentiment while investors focus on the progress of ceasefire talks in the Middle East, which could reduce supply risks.
Gold price is battling $2,500 early Monday, having refreshed all-time highs at $2,510. Gold traders prefer to take profits off the table, repositioning before the key US Federal Reserve Minutes of the July meeting and Chairman Jerome Powell’s speech later this week.
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