EUR/USD is keeping its range play intact below 1.0700 in the early European morning. The pair is helped by a cautiously optimistic market mood. Traders give up on the US Dollar amid weaker US Treasury yields ahead of Fed Chair Powell’s testimony.
GBP/USD is trading close to 1.2050, sustaining the rebound ahead of the London open. Renewed Brexit concerns, as DUP seeks consultation on the post-Brexit deal, could limit the upside in the pair, despite a broadly weaker US Dollar. Powell’s testimony is in focus.
The USD/JPY pair is displaying a back-and-firth action around 136.00 in the early European session. The asset has turned sideways as investors are awaiting fresh triggers for further guidance. Right from Federal Reserve (Fed) chair Jerome Powell’s testimony to the interest rate decision by the Bank of Japan (BoJ) and the United States Employment report, plenty of events will be held this week.
AUD/USD stands on slippery grounds as it drops nearly 30 pips to 0.6715 after the Reserve Bank of Australia (RBA) announced a monetary policy decision on early Tuesday. Adding strength to the Aussie pair’s pullback could be the geopolitical concerns surrounding the US-China ties.
The NZD/USD pair is aiming to recapture the 0.6200 mark in the early Tokyo session. The Kiwi asset has been strengthened as the risk-off market mood is ameliorating ahead of Federal Reserve (Fed) chair Jerome Powell’s testimony.
The USD/CAD pair is demonstrating a sideways auction above the 1.3600 mark in the Asian session. The Loonie asset has turned sideways ahead of Federal Reserve (Fed) chair Jerome Powell’s testimony and lackluster oil price.
Investors have refrained from going all-in as the commentary from Fed will determine the further direction in the FX domain. The US Dollar Index (DXY) is expected to resume the downside journey toward the 104.00 mark amid the risk-on market mood. S&P500 futures have added some gains after a lackluster Monday as the risk appetite of the market participants has improved.
USD/CHF remains sidelined around 0.9350 during early Tuesday. That said, the Swiss currency pair rose to the three-month high in the previous days amid broad-based US Dollar run-up but mixed comments from the Fed officials joined unimpressive US data to challenge the bulls afterward.
Oil prices rose to multi-week highs on Tuesday as bets on a strong economic rebound in China were furthered by better-than-expected trade data, although anticipation of a testimony by Federal Reserve Chair Jerome Powell kept broader sentiment muted.
Gold price is resuming the recent uptrend toward the three-week high of $1,858 on Tuesday, reversing a temporary drop seen a day before. The United States Dollar (USD) is licking its wounds, as traders refrain to place any fresh bets ahead of the US Federal Reserve (Fed) Chairman Jerome Powell’s testimony.
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