EUR/USD
EUR/USD scrambled for higher ground on Monday, launching bids into 1.1000 before settling back into a familiar range near 1.0950 and failing to set a fresh high for 2024. Broad-market expectations for rate cuts from the Federal Reserve (Fed) have run well ahead of the curve, with investors hoping for an initial double-cut from the Fed in September.
GBP/USD
The GBP/USD pair trades with mild losses near 1.2770 during the Asian trading hours on Tuesday. The modest recovery of the US Dollar (USD) helps limit the pair’s losses after retracing to 1.2710 in the previous session.
USD/JPY
USD/JPY has regained recovery momentum above 145.00 early Tuesday, shrugging off the Japanese Finance Minister’s comments. The risk-on impulse continues to undermine the safe-haven demand for the Japanese Yen, acting as a tailwind for the pair.
AUD/USD
AUD/USD is holding gains near 0.6500, little changed after the Reserve Bank of Australia’s (RBA) no interest-rate change decision on Tuesday. The focus now shifts to Governor Bullock’s presser for fresh hints on the interest-rate outlook.
NZD/USD
The NZD/USD pair recovers some lost ground around 0.5955 after retracing to near 0.5850 during the early Asian session on Tuesday. The softer US Dollar (USD) broadly provides some support to the pair. The risk sentiment might influence the markets amid concerns over the likelihood that the US economy might tip into recession.
USD/CAD
The USD/CAD pair trades on a softer note around 1.3805 during the early Asian session on Tuesday. The US Dollar (USD) bounces off the YTD lows near the 102.00 level and hovers around 102.60 amid fears of a US recession.
USD/CHF
USD/CHF continues its losing streak that began on July 30, trading around 0.8500 during the European session on Monday. This downside of the USD/CHF pair is attributed to expectations of the Federal Reserve’s (Fed) reducing interest rates in September.
CRUDE OIL
Oil prices rebounded by more than 1% on Tuesday, paring previous session’s losses, on supply concerns amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya’s Sharara oilfield.
GOLD
Gold price edges higher and moves away from a one-week low touched on Monday. Bets for a 50-bps Fed rate cut in September and geopolitical risks lend some support. A turnaround in the global risk sentiment and rebounding US bond yields could cap gains.
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