The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is remaining steady after three days of losses and trading around 97.40 during the early European hours on Wednesday.
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GBP/JPY has retraced its recent losses, trading around 198.80 during the Asian hours on Wednesday. A look at the daily chart suggested the currency cross is moving upwards within an ascending channel pattern, suggesting a persistent bullish bias.
The USD/CAD pair enters a bearish consolidation phase during the Asian session and oscillates in a narrow trading band around the 1.3600 mark, near a two-week low touched earlier this Wednesday.
Silver price rally continued during the week, posting gains of over 0.94% on Tuesday and reaching 14-year highs, levels last seen in September 2011. At the time of writing, XAG/USD trades at $39.25.
EUR/USD remains above the 20-day Simple Moving Average (SMA) of 1.1704, trading with gains of over 0.50% due to an improvement in risk appetite weighing on the US Dollar, even though fears that the European Union (EU) and the United States (US) might fail to reach a deal before the August 1 deadline
The Australian Dollar (AUD) is extending its climb against the US Dollar (USD) on Tuesday as a softer Greenback and a slightly more balanced tone from the Reserve Bank of Australia (RBA) support the upside move.
Gold price extended its rally to two consecutive days on Tuesday, rising by over 0.9% as US Treasury yields continued their decline, weakening the US Dollar as traders await fresh news regarding new trade deals from the United States.
The GBP/USD advances modestly during the North American session as the US dollar extends its losses for two straight days, despite data showing that UK government borrowing soared in June. At the time of writing, the pair trades at 1.3504 up 0.12%.
Gold (XAU/USD) is experiencing a fresh bout of optimism on Tuesday as trade tensions and concerns about the Federal Reserve’s (Fed) independence continue to lend support through safe-haven demand.
The Euro (EUR) is up marginally against the US Dollar (USD) and looking well supported as it seeks to extend its latest recovery following the pullback from its July 1 high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
US Dollar (USD) may edge lower against Chinese Yuan (CNH), but any decline is not expected to reach 7.1550; note that there is another support level at 7.1635.
US Dollar (USD) is likely to trade in a range between 146.90 and 148.20 against Japanese Yen (JPY). In the longer run, USD is expected to trade in a range of 146.90/149.20, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New Zealand Dollar (NZD) is likely to trade in a range of 0.5940/0.5980 against US Dollar (USD). In the longer run, weakness from early this month has come to an end; NZD is likely to consolidate between 0.5905 and 0.6000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
EUR/USD is holding firm near the 1.1700 level as the ECB’s latest bank lending survey suggests easing may be nearing its end. Stable credit standards and a slight uptick in loan demand have reduced expectations for near-term rate cuts, BBH FX analysts report.
The underlying tone in Australian Dollar (AUD) has firmed against US Dollar (USD), but this is likely to lead to a higher range of 0.6505/0.6545 instead of a sustained rise.
Pound Sterling (GBP) could strengthen further against US Dollar (USD); overbought conditions suggest that any advance could be limited to a test of 1.3535.
The recent rebound in the yen may prove short-lived, with political uncertainty in Japan and fiscal expansion pressures continuing to weigh on sentiment. Meanwhile, the unwinding of USD/JPY longs could be amplifying broader dollar weakness, ING's FX analyst Francesco Pesole notes.
The dollar began the week under pressure, despite the absence of a clear catalyst. Long-dated Treasury yields, which have once again regained a positive correlation with the dollar, continued to decline, but not at a faster pace than EU bond yields, ING's FX analyst Francesco Pesole notes.
USD/JPY continued to trade under pressure post-election outcome. Price action suggests that too much pessimism was in the price. Pair was last at 147.50, OCBC's FX analysts Frances Cheung and Christopher Wong note.
GBP/USD is attempting a rebound after finding support near its June low at 1.3360, but technical signals point to waning bullish momentum. The upside may remain limited unless the pair overcomes key resistance around 1.3630, Société Générale's FX analysts note.
Recent UK data releases have not endorsed the market’s tentative speculation on faster Bank of England easing, and two-year GBP swap rates are around 8bp above last week’s lows.
Euro (EUR) jumped above 1.17-handle overnight but there was no particular headline or data that drove the move. Pair was last seen at 1.1690, OCBC's FX analysts Frances Cheung and Christopher Wong note.
CFTC data shows net long positioning on EUR/USD at 15.6% of open interest since 15 July. That is the highest since January 2024, but still a relatively contained figure considering the pair is trading almost 10% above early-2024 levels.
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.
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