EUR/USD licks its wounds around 1.0160, after a brief corrective pullback, as fears surrounding economic slowdown join pre-data anxiety. With this, the major currency also justifies the bearish technical formation during early Tuesday morning in Europe.
GBP/USD has paused its three-day sell-off near mid-1.2000s, as bears take breather ahead of the UK employment data release. The UK ILO Unemployment Rate is seen steady at 3.8% in June while the average hourly earnings ex-bonus are likely to tick higher from 4.3% to 4.5% in June.
USD/JPY refreshes intraday low near 133.00 during Tuesday’s initial Tokyo session. In doing so, the yen pair tracks downbeat US Treasury yields, as well as recession fears, during a sluggish session.
AUD/USD pares intraday losses around 0.7020 after the Reserve Bank of Australia’s (RBA) Minutes of the latest monetary policy meeting. In doing so, the Aussie pair struggles to justify its risk-off mood amid firmer signals from the Minute statement.
The NZD/USD snaps five days of gains and tumbles from around last week’s highs due to a mixed sentiment, spurred by weak Chinese economic data, alongside a dismal NY Fed Empire State Manufacturing Index, which slightly weakened the greenback.
USD/CAD bulls take a breather around 1.2900, following the longest daily jump in a month, as traders await the key inflation data from Canada. In addition to the pre-data anxiety, the cautious mood in the markets and sluggish prices of Canada’s main export item, WTI crude oil, also probed.
USD/CHF grinds higher around 0.9460. In doing so, the Swiss currency (CHF) pair extends the previous week’s rebound from the lowest levels since mid-April.
Crude oil prices are in free fall at the beginning of the week, with the barrel of West Texas Intermediate currently trading at $86.63, not far from this month’s low at $86.40. Several factors are weighing on oil prices, the main one being the worsening demand outlook. The data from China showed that the country’s crude throughput fell to its lowest level since March 2020 at 53.21 million tonnes of crude oil in July. That number was also 8.8% lower than the same time last year. Additionally, disappointing Retail Sales and Industrial Production data from China revived concerns over a global recession.
Gold price pares the recent losses at around $1,780 as a sluggish session allows sellers to consolidate downside moves during Tuesday morning in Europe. Even so, market’s fears relating to the economic conditions in the US, Europe and China seem to keep the commodity buyers hopeful.
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