The EUR/USD pair is posting marginal gains ahead of the US Session opening on Tuesday as the US Dollar retreats further with trade uncertainty growing.
USD/CAD gains ground after two days of losses, trading around 1.3690 during the early European hours on Monday. However, the bearish bias persists as the daily chart’s technical analysis indicates that the pair moves sideways within the descending channel pattern.
The AUD/JPY consolidates below the 97.00 level on Tuesday, following the release of the first election results in Japan. Although the risk appetite was upbeat, the Aussie Dollar failed to gain traction and is down at the beginning of the week.
Silver prices advance sharply over 2% on Monday as the North American session comes to an end, ahead of the open of the Sydney–Tokyo sessions. At the time of writing, the XAG/USD trades at $38.95 after bouncing off daily lows of $38.10 earlier in the day.
The EUR/USD surged on Monday, rising by over 0.50%, as the US dollar edged lower, undermined by a decline in US Treasury yields and trade uncertainty, with the August 1 deadline looming.
The Australian Dollar (AUD) is extending its gains against the US Dollar (USD) on Monday as EU-US trade tensions escalate and concerns over the independence of the Federal Reserve (Fed) rise.
Gold price rallied over 1% on Monday as the US Dollar and US Treasury yields tumbled sharply amid uncertainty over trade deals, amid an overall risk-on mood on the markets. At the time of writing, the XAU/USD trades at $3,397 after bouncing off daily lows of $3,338.
The shared currency remains steady against the British Pound on Monday, ahead of a busy week as traders await the monetary policy decision by the European Central Bank (ECB) and a speech by Bank of England (BoE) Governor Andrew Bailey.
The Euro (EUR) is easing against the Japanese Yen (JPY) following Japan’s post-election clarity and renewed concerns over stalled EU–US trade negotiations.
Silver (XAG/USD) starts the week on firmer ground after a mild pullback last week. As of now, the metal is trading near $38.50 during the early American trading hours on Monday, just shy of the multi-year high of $39.13 set on July 14.
The US Dollar (USD) kicks off the week on the back foot, slipping against major currencies in Monday trading. Investors are reacting to renewed trade tensions ahead of the August 1 deadline and a generally cautious market sentiment.
The Euro (EUR) is steady, up a marginal 0.1% as it shows signs of continued stabilization around 1.16, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
US Dollar (USD) is likely to trade in a range of 7.1730/7.1860 against Chinese Yuan (CNH). In the longer run, USD is expected to trade in a range between 7.1550 and 7.1920, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
US Dollar (USD) is likely to trade in a range between 147.80 and 148.85 against Japanese Yen (JPY). In the longer run, USD strength has paused for now; it is expected to trade in a range of 146.90/149.20, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
With an increase of 2.7%, inflation in New Zealand was slightly lower than expected by the market in the second quarter this morning, Commerzbank's FX analyst Volkmar Baur notes.
In an initial reaction, the Japanese Yen (JPY) appreciated this morning, showing some relief after yesterday's elections. And certainly, the uncertainty about the political future could have been much greater this morning. As feared, the LDP lost its majority in yesterday's upper house elections.
Gold is consolidating below key resistance at $3375, with technical indicators hinting at renewed bullish momentum. A breakout could open the path toward $3450 and April’s highs near $3500, while $3280 remains crucial support, Société Générale's FX analysts note.
The AUD/USD is hesitating right above 0.6500, practically flat on the day. The risk on market and the softer US Dollar amid lower US Treasury yields keep the pair supported, but upside attempts seem limited.
Dow Jones futures trade higher during the European trading session on Monday, signalling a positive opening for United States (US) equities after the weekend.
Momentum indicators are still mostly flat; Australian Dollar (AUD) could continue to consolidate against US Dollar (USD), most likely in a range of 0.6490/0.6535.
USD/JPY saw fairly whippy trades this morning, likely in reaction to Upper House election results amid thin market liquidity as Japan markets are closed for holidays. USD/JPY last seen at 147.92, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The Japanese Yen (JPY) is a little stronger today as the market digests yesterday's Upper House election results. Here, the ruling coalition between the Liberal Democratic Party (LDP) and Komeito lost its majority, although it remains by far the largest political bloc in parliament.
Pound Sterling (GBP) could edge lower, but it does not appear to have enough momentum to break below 1.3375. GBP view is still negative; the next technical target at 1.3320 may not come into view so soon, as it could consolidate first, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
US Dollar (USD) traded mixed as markets took stock of the rebound off its lows. The Dollar Index (DXY) was last at 98.50 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
EUR/USD seems quite comfortable near the 1.1600 level. In theory, it has had enough consolidation should it want to move higher again, though there does not seem to be a catalyst for that this week, ING's FX analyst Chris Turner notes.
Gold technical forecast for July 21 using tradeCompass: key levels, trade plan, and partial profit targets for intraday gold traders. Probably the best gold trading map you will find (just try it).
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