EUR/USD
The EUR/USD pair climbs to near 1.1675 during the early European session on Monday. The Euro strengthens against the US Dollar due to a potential meeting between US President Donald Trump and Russian President Vladimir Putin on Friday to end sanctions. Traders await the US Consumer Price Index data for July, which is due later on Tuesday.
GBP/USD
The GBP/USD pair kicks off the new week on a subdued note and consolidates its recent goodish recovery gains from the 1.3140 area, or the lowest level since April 14, touched earlier this month. Spot prices trade just below mid-1.3400s during the Asian session, nearly unchanged for the day, though the fundamental backdrop seems tilted in favor of bullish traders.
USD/JPY
The Japanese Yen (JPY) extends its sideways consolidative price move through the Asian session on Monday amid relatively thin trading volumes on the back of a bank holiday in Japan. Moreover, traders seem reluctant to place aggressive directional bets on the back of mixed fundamental cues. Diminishing odds for an immediate interest rate hike by the Bank of Japan (BoJ), along with a positive risk tone, turn out to be key factors acting as a headwind for the safe-haven JPY.
AUD/USD
The Australian Dollar (AUD) may remain steady against the US Dollar (USD) on Monday due to market caution ahead of the interest rate decision by the Reserve Bank of Australia due on Tuesday. The AUD/USD pair may face challenges as traders are pricing in that the RBA will deliver a 25 basis point (bps) rate cut, bringing its Official Cash Rate (OCR) to 3.6% from 3.85% at its August meeting.
NZD/USD
The NZD/USD pair ticks lower at the start of a new week and moves further away from over a one-week top touched on Friday, though it lacks follow-through selling. Spot prices currently trade around mid-0.5900s, down less than 0.10% for the day, amid mixed fundamental cues.
USD/CAD
USD/CAD inches lower after two days of losses, trading around 1.3750 during the Asian hours on Monday. The pair depreciates as the US Dollar (USD) faces challenges amid recent weakening in US economic data, which prompted traders to price in the possibility of more interest rate cuts this year. Markets are now pricing in approximately 89% odds of a Fed rate cut at the September meeting, as per the CME FedWatch tool.
USD/CHF
USD/CHF loses ground after two days of gains, trading around 0.8060 during the Asian hours on Monday. The pair edges lower due to rising odds of the Federal Reserve (Fed) delivering multiple rate cuts by the end of this year. Tuesday’s US consumer inflation data, followed by the preliminary UK Q2 GDP print and the US Producer Price Index (PPI) due on Thursday, will be eyed to gain further impetus for the United States (US) economic conditions.
CRUDE OIL
Oil prices fell in Asian trade on Monday, extending declines of more than 4% last week as investors awaited the outcome of talks between the U.S. and Russia later this week on the war in Ukraine.
Gold price kicks off the new week on a weaker note, while a positive risk tone undermines safe-haven assets. Rising Fed rate cut bets prompt fresh USD selling and offer some support to the non-yielding yellow metal. Traders now look forward to the release of US inflation figures this week to determine the near-term trajectory.
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