Wall Street began the week in the black. The Dow Jones gained 0.07%, while the Nasdaq gained 1.05%. Investors expressed confidence in the economy’s smooth landing.
The US Dollar Index closed above 103.15 for the first time in almost a month. However, it concluded well below the intraday high, implying that it may consolidate in the coming hours.
US rates continue to be a crucial support for the greenback. The 10-year yield increased to 4.20%, and the 2-year yield increased to 4.97%, the highest levels in a month. Yields continue to rise, despite market expectations that the Federal Reserve would remain on hold at the next FOMC meeting.
The United States will announce Retail Sales, which are predicted to rise 0.4% in July. The NY Empire Manufacturing Index is also due.
The EUR/USD fell once more, dipping below major moving averages, but managed to recover and rebound over 1.0900 throughout the American session. The Euro also fell in value against the British pound and the Swiss franc. Tuesday is the deadline for the ZEW Survey.
After recovering during the American session, the GBP/USD pair finished flat. The pair fell to 1.2616, matching the 100-day Simple Moving Average (SMA), before rising to 1.2700. The United Kingdom will release employment figures for the three months ending in June. More data, including the inflation report, is due on Wednesday.
USD/JPY climbed for the sixth day in a row and reached its highest daily close since November, reaching 145.50. On Tuesday, Japan will disclose GDP and Industrial Production numbers for the second quarter.
The USD/CHF pair finished higher but still below 0.8800. The pair reached a high of 0.8831, the highest intraday level in a month, before falling back. On Tuesday, the Swiss Producer and Import Price Index will be released.
USD/CAD maintains its upward trend, remaining over 1.3400. Canada’s inflation data is anticipated on Tuesday. In July, the Consumer Price Index (CPI) is predicted to rise 0.3% month on month. The Manufacturing Sales report is also due.
The AUD/USD declined for the fifth day in a row but ended off its lows. The pair gained support at 0.6450 and returned to 0.6500. Commodity price declines and a cautious tone in financial markets are weighing on antipodean currencies. The Reserve Bank of Australia (RBA) will disclose the minutes of its most recent meeting, at which it held the benchmark interest rate at 4.10% unchanged. Also due is the Wage Price Index.
The New Zealand dollar/US dollar fell to its lowest daily close since mid-November, trading below the 0.6000 mark. The bias predicts that the pair will continue to fall; however, the closure so far from the low shows that the pair may be set for some consolidation. The Reserve Bank of New Zealand (RBNZ) will publish its monetary policy decision on Wednesday. The central bank is not likely to make any changes.
The Argentine Peso was the worst-performing currency after the government depreciated it by 20% during Sunday’s primary presidential elections. Since October of last year, the Chinese Yuan has dropped to its lowest level against the US dollar.
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.