The greenback surrendered its initial gains made in Europe on Monday and retreated in New York in tandem with U.S. Treasury yields to end the day little changed on uncertainty over the Federal Reserve's tapering timeline.  
Versus the Japanese yen, dollar traded with a firm bias in New Zealand and gained to session highs at 110.15 in early European morning. However, the pair then pared its gains and retreated in tandem with U.S. yields to 109.91 in New York morning before rebounding to 110.03.   
The single currency remained under pressure in New Zealand and dropped to 1.1776 in early European morning. Despite a brief rebound to 1.1792, the pair fell to a 2-week trough at 1.1771 ahead of New York open on cross-selling of euro especially vs sterling. Euro then erased its losses and rallied to an intra-day high at 1.1817 in New York on usd's broad-based weakness.  
The British pound traded sideways in New Zealand and briefly rebounded to 1.3846 in Asian morning, however, the pair found renewed selling there and dropped to session lows at 1.3797 in early European morning. Cable then erased its losses and rose to an intra-day high at 1.3852 in New York on broad-based retreat in usd before stabilising.  
In other news, Reuters reported European Central Bank policymaker Isabel Schnabel said on Monday that inflation in the euro area will "in all likelihood" ease next year after the current spike but she listed risks to that scenario from supply bottlenecks to higher wages.    "Today, against the background of rising inflation rates, particularly in Germany, it was a matter of concern to me to alleviate people's concern that inflation may remain persistently too high or even shoot up uncontrollably," Schnabel told an audience of German entrepreneurs.     "In all likelihood, inflation will noticeably decrease as soon as next year."  
Data to be released on Tuesday:  
New Zealand Westpac consumer survey, Australia NAB business conditions, NAB business confidence, house price index, Japan industrial output, capacity utilization, U.K. claimant count, ILO unemployment rate, employment change, average weekly earnings, Swiss producer/import price, Canada leading index, manufacturing sales, U.S. CPI and redbook retail sales.  

Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD holds above 1.1700 but the upside is limited

The EUR/USD pair flirted with 1.1750 but was unable to retain its modest intraday gains. Now trading in the 1.1720 price zone, bears retain control ahead of the US central bank monetary policy decision.


GBP/USD: Pressure mounts ahead of central banks’ announcements

The Fed and the BoE will make announcements this week. UK public inflation expectations are up for this year and the upcoming ones. GBP/USD is technically bearish in the near term, poised to retest August monthly low.


Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Shiba Inu bulls can't hold SHIB from dropping to $0.000006

Shiba Inu price has fallen -28% over the past four trading sessions. Bears remain in control as bulls fail to complete a breakout above $0.000008. Bulls must hold $0.000007 to prevent a drop towards $0.000006.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question for the Fed in its all-important September meeting. The bank buys $120B worth of bonds every month and it is set to reduce the pace at some point – the first step toward raising interest rates. 

Read more