Three days remaining til the end of the month (and quarter) The US dollar index is posting its biggest monthly decline in 17 months. EURUSD hit a three-month high on Monday and rose above 1.14 to hit Ashraf's target. Gold hit a fresh 6-year in Asia and returns near the highs after a 8% decline in US new home sales. Eatch out for Powell's speech about the US economy at 13:00 Eastern (18:00 London) and dissenter Bullard's speech 6.5 hrs later. The Premium short in USDCAD has been closed at 1.3160 for 200 pip-gain. The latest Premium video is below contains some impirtant mechanics about USD shifts ahead and during Fed rate cuts.

The euro gain to start the week came on a solid IFO survey and continued US dollar weakness. The dollar fell after Treasury yields gave back last week's mini rally. The  US 10-year yields fell 4 basis points on the day and stocks dipped modestly after an early gain.

The Fed's Kaplan argued for patience before cutting rates but also indicated that he was open to looser policy because of rising risks. Trump continued to tweet about the Fed and markets continued to ignore him. His actions on Iran had a larger effect as the White House announced fresh sanctions on Iran. That helped to reverse oil losses and boost it to a modest gain.

Overall moves to start the week were modest but gold has continued to surge, climbing another $20 on Monday. It's on track for the best month since 2016 with an 8% gain. Oil faces resistance at the 59.40 trendline resistance, hence Ashraf's closing of the Premium short in USDCAD at 1.3160 for a 200-pip gain.

Looking ahead, we await Powell's speech at 6 pm London time discussing the economic outlook, where he will surely expound on last week's broad downgrades in US growth. Also important, is St Louis Fed's Bullard speech, where he will surely present his argument for dissenting at Wednesday's FOMC decision, where he made the first dovish dissent in the era of the Powell Fed.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

GBP/USD bulls retain control near 1.3300 mark, highest since March 2022

GBP/USD bulls retain control near 1.3300 mark, highest since March 2022

The GBP/USD pair trades with a positive bias for the third straight day on Friday and hovers around the 1.3300 mark during the Asian session, just below its highest level since March 2022 touched the previous day.

GBP/USD News
USD/JPY pops and drops on BoJ's expected hold

USD/JPY pops and drops on BoJ's expected hold

USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.  

USD/JPY News
Gold consolidates weekly gains, with sight on $2,600 and beyond

Gold consolidates weekly gains, with sight on $2,600 and beyond

Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.

Gold News
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum

Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum

Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures