EUR/USD erases some of last Friday’s gains and drops 0.93% as the Greenback stages a recovery, following dovish remarks by Federal Reserve (Fed) Chair Jerome Powell. Expectations that the Fed will cut rates in September triggered the Euro’s (EUR) advance.
USDCHF is trading higher as the USD gains ground against major currencies. Price is approaching key levels, with potential upside targets near the 0.8057-0.80597 range.
GBP/USD consolidates during the North American session on Monday after last Friday’s dovish tilt by the Federal Reserve Chair Jerome Powell, who said that risks to the labor markets are rising, an indication that monetary policy is cooling the jobs market.
USDCHF buyers strive to push back above key resistance levels amidst a battle with sellers. Focus on crucial support at 0.8017 and resistance at 0.8047 to determine market direction.
Gold (XAU/USD) kicks off the week on a softer footing after touching a two-week high on Friday, following Federal Reserve (Fed) Chair Jerome Powell’s dovish remarks at the Jackson Hole Symposium that fueled a broad rally in precious metals.
US Dollar (USD) is likely to trade in a range between 146.80 and 147.85. In the longer run, outlook is mixed; USD could trade in a range between 146.40 and 148.40, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Euro (EUR) is down a modest 0.3% as it fades a slight portion of Friday’s gains, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Rapid rise in New Zealand Dollar (NZD) has scope to test 0.5885 before levelling off becomes likely. In the longer run, NZD appears to have entered a range-trading phase; for the time being, it is likely to trade between 0.5820 and 0.5920, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
AUD is likely to trade in a range of 0.6460/0.6510. In the longer run, slight increase in upward momentum is likely to lead to a higher range of 0.6440/0.6540 rather than a sustained advance, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Pound Sterling (GBP) is likely to trade in a range of 1.3465/1.3545. In the longer run, further GBP strength is not ruled out, but it is unclear if there is enough momentum for it to reach 1.3595, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) is likely to consolidate between 1.1665 and 1.1745. In the longer run, increase in upward momentum is not enough to indicate a sustained rise; EUR must first close above 1.1745, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Euro bounced up from the bottom of the last six weeks' trading range near 0.8600 against the British Pound last week, and the pair remains biased higher on Monday, despite a slight daily pullback which, so far, remains contained above 0.8660
New Zealand Dollar (NZD) bounced off its post-RBNZ lows, owing to a softer US Dollar (USD), but magnitude of strengthening was relatively weak. Pair last seen at 0.5855 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
US Dollar (USD) fell post Powell’s speech at Jackson Hole. But the decline in USD did not make fresh lows. DXY last at 98 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Chairman Powell managed to surprise the market on Friday after all, putting pressure on the US dollar. Expectations had been gradually scaled back over the previous week, allowing the US dollar to benefit. On Friday, EUR/USD even traded in the 1.15 range once again.
Euro (EUR) rose sharply post-Powell’s speech last Friday amid USD softness. EUR was last at 1.17 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Gold futures trade at 3408.5, sitting just under today’s bearish threshold of 3409.7. Bias leans bearish with intraday targets at 3406.7, 3405.7, and 3403.2. Bulls must reclaim 3414.1 for upside momentum. Despite today’s pressure, gold remains a strong performer in 2025, up 29.1% YTD and 35.2% over 1 year.
The EUR/JPY cross trades on a positive note near 172.40 during the early European session on Monday, bolstered by improved risk sentiment. However, hawkish remarks from the Bank of Japan (BoJ) Governor Kazuo Ueda might lift the Japanese Yen (JPY) and cap the upside for the cross.
EUR/USD skyrockets during the North American session after Federal Reserve (Fed) Chairman Jerome Powell leaned dovish at his Jackson Hole speech, opening the door for a resumption of the easing cycle. The pair trades at 1.1718, up by 0.97%.
Gold prices continue to trend higher on Friday after the Federal Reserve (Fed) leaned dovish, as commented by the Fed Chair Jerome Powell, who said that “downside risks to the labor market are rising.” XAU/USD trades at $3,371 after hitting a daily low of $3,321.
USD/CAD tumbles over 0.49% during the North American session as Fed Chair Jerome Powell leaned dovish and strong Canadian Retail Sales boosted the Loonie. At the time of writing, the pair trades at 1.3835 after hitting a daily high of 1.3924.
The EUR/GBP cross is trading with subdued price action on Friday, consolidating above the 0.8650 level after paring earlier losses during the American session.
Gold (XAU/USD) is trading on the back foot for a second straight day on Friday, weighed down by a strong US Dollar (USD) and firm Treasury yields. At the time of writing, the precious metal is hovering near $3,325, down 0.40% on the day.
USD little changed as NA session opens before Fed Chair Powell's pivotal speech at Jackson Hole symposium. Markets eager for insight on monetary policy amidst rate cut speculation.
Aussie Dollar’s upside attempts have been contained below 0.6430 so far on Friday, and the pair turned lower again to two-month lows at the 0.6415 area, which is being tested at the time of writing.The US Dollar is outperforming its main peers, underpinned by a moderate risk-averse market.
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