EUR/USD
The Euro (EUR) advances against the US Dollar (USD) on Monday, despite the market mood remaining downbeat amid the Middle East crisis. Worse than expected HCOB Flash PMIs in the Eurozone barely weighed in the shared currency, while German PMIs showed a slight improvement, though they remained in contractionary territory. At the time of writing, EUR/USD trades at 1.1567, up 0.40%.
GBP/USD
GBP/USD gained ground on Monday, lurching higher after the US chose to get directly involved in the spiraling Israel-Iran conflict that started recently. The Trump administration, skirting around congressional authority, ordered a barrage of attacks on Iranian nuclear facilities over the weekend, sparking a surge in crude oil markets. Following Iran’s retaliatory attacks early Monday on US Air Force installations in Qatar, all parties have tentatively agreed to a ceasefire, and talks between Iran and Israel are expected to begin.
USD/JPY
USD/JPY extends the sharp retracement from 148.00 for the second consecutive day on Tuesday amid a broad US Dollar weakness. Fed Governor Bowman pointed to the possibility of a rate cut in July. Meanwhile, the Iran-Israel ceasefire also undermines the USD, adding to the pair’s downside ahead of Fed Chair Powell’s two-day congressional testimony.
AUD/USD
AUD/USD recovers further toward 0.6500 early Tuesday amid a positive turnaround in global risk sentiment, bolstered by the Israel-Iran ceasefire announcement. This, along with the revival of Fed rate cut bets, weighs heavily on the safe-haven US Dollar, lending support to the pair for the second consecutive day.
NZD/USD
The NZD/USD pair attracts some buyers to around 0.5995 during the early Asian session on Tuesday. The US Dollar (USD) softens against the New Zealand Dollar (NZD) due to dovish Fedspeak. Investors will keep an eye on Chair Powell’s semiannual testimonies and the US June Consumer Confidence report later on Tuesday.
USD/CAD
The USD/CAD pair trades with mild losses near 1.3730 during the early Asian session on Monday. The dovish remarks from the Federal Reserve (Fed) officials and easing tension in the Middle East weigh on the US Dollar (USD). Investors brace for Chair Jerome Powell’s semiannual testimonies and the release of US Consumer Confidence later on Tuesday.
USD/CHF
The US Dollar is trading with moderate gains against the Swiss Franc on Monday, but remains trapped within the last few days’ trading range, as the 0.8200 level keeps holding bulls for now.
CRUDE OIL
Oil prices fell sharply to their lowest in more than a week on Tuesday as U.S. President Donald Trump said a ceasefire has been agreed between Iran and Israel, alleviating worries of supply disruptions in the Middle East – a major oil-producing region.
Gold price bounces-off nine-day lows near $3,335 early Tuesday on reviving July Fed rate cut talks. US Dollar corrects sharply from the monthly top on a Iran-Israel ceasefire and dovish Fed expectations. XAU/USD looks to Fed Powell’s testimony as the 50-day SMA is tested; the daily RSI teases the midline.
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