Forex Today: Focus shifts to the services sector

The US Dollar (USD) navigated a mildly positive start to the new trading week, as investors continued to digest Friday’s severe pullback in response to the dismal prints from the US Nonfarm Payrolls.

Here's what to watch on Tuesday, August 5:

The US Dollar Index (DXY) alternated gains with losses in the lower end of the recent range, well south of the 99.00 support, amid ongoing trade developments and renewed speculation of rate cuts by the Fed. The ISM Services PMI will take centre stage, followed by the final S&P Global Services PMI, the RCM/TIPP Economic Optimism Index, the Balance of Trade results, and the API’s weekly report on US crude oil stockpiles.

EUR/USD receded marginally after faltering just ahead of the key barrier at 1.1600 the figure. The final HCOB Services PMIs are due in Germany and the broader Euroland, followed by Producr Prices in the bloc.

GBP/USD added to Friday’s uptick and reclaimed the 1.3300 hurdle and beyond, hitting three-day highs at the same time. The final S&P Global Services PMI is due, followed by annualised New Car Sales.

USD/JPY kept the bearish tilt in place for the second straight day, briefly breaching the 146.00 support to reach multi-day lows. The BoJ will publish its Minutes, ahead of the final S&P Global Services PMI.

AUD/USD clocked decent gains and maintained intact its march toward the 0.6500 milestone on Monday. Household Spending is next on tap in Oz prior to the final S&P Global Services PMI.

Prices of the American WTI retreated further on Monday, hitting multi-day troughs near the $65.00 mark per barrel in response to another output hike announced by the OPEC+

In response to the US Dollar's irresolute price action and mixed US yields, gold prices extended their recovery and traded at a small distance from the key $3,400 mark per troy ounce. Silver prices followed suit, adding to Friday’s bounce and hitting three-day peaks near $37.50 per ounce.