The US dollar moved sideways on Monday ahead of a busy week in the market. The index has been in a spectacular rally as risks in the market rise and as hopes of additional rate hikes by the Federal Reserve rise. Key data to watch this week will be the American retail sales data scheduled for Tuesday. Analysts expect these numbers to reveal that sales remained under pressure as consumer prices rise. The US will also publish the latest new home sales and housing starts numbers. The index will also react to geopolitical tensions as Finland and Sweden make their Nato application.

US futures were in the green during the Asian session, continuing the trend that started on Thursday last week. The Dow Jones, Nasdaq 100, and S&P 500 indices will react to revenue numbers from the biggest retailers in the US. These companies include Walmart, Target, Home Depot, Lowe’s, and Macy’s. Other key companies that will publish this week are Take Two Interactive, JD.com, Cisco, Analog Devices, and Deere among others. According to FactSet, most American companies have been publishing strong revenue growth and weak profits. The average earnings growth is 9.1%, which is the lowest level since Q4 of 2020.

The Chinese statistics agency published weak economic numbers earlier today. These numbers point to the fact that the economy is struggling because of ongoing lockdowns in Shanghai. During the weekend, Shanghai announced reopening plans that will include mass testing and shopping malls reopening. The economic calendar will have minimal events today, with the main one being the EU economic forecast by the European Commission. Investors will also focus more on cryptocurrencies following last week’s volatility.

EUR/USD

The EURUSD pair was little changed on Monday morning. It is trading at 1.0406 and is hovering near the lowest level since 2002. The pair is below the important resistance level at 1.0480, where it struggled moving below in April and early this month. The pair is between the middle and the lower side of the Bollinger Bands while the William % Range and RSI have moved above their oversold levels. Therefore, with the pair forming a bearish flag pattern, there is a likelihood that it will move lower.

EUR/USD

USD/CHF

The USDCHF continued its bullish trend. The pair is trading at 1.0018, which is slightly above its parity level. It is along the upper side of the Bollinger Bands. Also, the Relative Strength Index kept moving above the overbought level while the MACD has risen above the neutral level. The pair will likely keep rising as the bullish momentum continues. 

USD/CHF

XAU/USD

The XAUUSD pair continued falling as the gold sell-off continued. The pair is trading at 1,811, which is significantly lower than this month’s high of 1,911. It is between the middle and lower side of the Bollinger Bands while the RSI is hovering slightly above the oversold level. The path of the least resistance for gold is lower, with the next reference level being at 1,800.

XAU/USD

 

General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD falls through 1.0100 amid renewed dollar strength

EUR/USD falls through 1.0100 amid renewed dollar strength

EUR/USD came under heavy bearish pressure, now trading below the 1.0100 level and at its lowest for this month. Although the data from the US showed that Existing Home Sales fell sharply in July, the economy seems resilient to global woes.

EUR/USD News

GBP/USD slumps to multi-week lows and nears 1.1900

GBP/USD slumps to multi-week lows and nears 1.1900

GBP/USD extended its daily slide and touched its weakest level since mid-July in the 1.1920 price zone. The broad-based dollar strength, as reflected by a more than 0.5% increase in the US Dollar Index, forces the pair to continue to stretch lower in the American session.

GBP/USD News

Gold bearish breakout underway

Gold bearish breakout underway

Gold is losing ground for a fourth consecutive day, trading at fresh weekly lows. The metal suffers from renewed dollar strength, as US data suggest the economy remains resilient to the latest global woes, leaving room for the Fed to maintain its aggressive stance.

Gold News

Why XTZ traders need to be glued to the screen for next 48 hours

Why XTZ traders need to be glued to the screen for next 48 hours

Tezos price will likely take a key turn lower today after the bullish print on Wednesday. XTZ price is at the mercy of global markets rolling over this morning. Either the technical support handles hold – or break under dollar pressure.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures