EUR/USD
The EUR/USD pair kicks off the new week on a subdued note and oscillates in a narrow trading band through the Asian session. Spot prices currently trade around the 1.1625 area, nearly unchanged for the day, amid mixed cues. The uncertainty over the Federal Reserve’s rate-cut path keeps the US Dollar on the defensive.
GBP/USD
The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow band, just above the 1.3400 round figure during the Asian session. Meanwhile, spot prices remain well within striking distance of a nearly two-month low touched last week.
USD/JPY
The Japanese Yen (JPY) attracts fresh sellers following a modest bullish gap opening at the start of a new week amid the domestic political uncertainty. Japan’s upper house election on Sunday dealt a big blow to the ruling coalition and raised concerns about an increase in debt, amid calls from the opposition to boost spending and cut taxes. The outcome could further complicate trade negotiations with the US amid the looming tariff deadline on August 1. Apart from this, the slowing economic growth, declining real wages, and signs of cooling inflation could allow the Bank of Japan (BoJ) to forgo raising interest rates in the near term, which continues to undermine the JPY.
AUD/USD
The Australian Dollar (AUD) loses ground against the US Dollar (USD) on Monday, retracing its recent gains from the previous session. The AUD/USD pair remains subdued after the People’s Bank of China (PBoC) decided to leave its one- and five-year Loan Prime Rates (LPRs) unchanged at 3.00% and 3.50%, respectively. It is important to note that any change in the Chinese economy could impact the Australian Dollar as China and Australia are close trade partners.
NZD/USD
NZD/USD lost ground following the disappointing New Zealand inflation data for the second quarter, trading around 0.5940 during the Asian hours on Monday. Traders may adopt caution ahead of the New Zealand Trade Balance data, due on Tuesday. The pair remains subdued after the People’s Bank of China (PBoC) decided to leave its one- and five-year Loan Prime Rates (LPRs) unchanged at 3.00% and 3.50%, respectively. It is important to note that China and New Zealand are close trade partners.
USD/CAD
The USD/CAD pair trades on a flat note near 1.3725 during the early Asian session on Monday. Tariff uncertainty might continue to weigh on the Canadian Dollar (CAD) against the US Dollar (USD). Traders await the release of the Bank of Canada (BoC) Business Outlook Survey for fresh impetus, which will be published later on Monday.
USD/CHF
The US Dollar is paring previous gains against the Swiss Franc on Monday, retreating from three-week highs at 0.8060 and approaching the 0.8000 psychological level. The Swiss Franc is holding better than the US Dollar, with most safe havens losing ground as risk appetite returns to the markets.
CRUDE OIL
Oil prices were little changed on Monday as traders assess the impact of new European sanctions on Russian oil supplies while they also worry about tariffs possibly weakening fuel demand as Middle East producers are raising output.
Gold price attracts some safe-haven flows amid persistent trade-related uncertainties. Mixed Fed rate cut cues keep the USD depressed and further benefit the XAU/USD pair. The range-bound price action warrants some caution before placing fresh bullish bets.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
