Forex today: mixed mood for the dollar, eyes on Washington, Sterling bid

Ross J Burland FXStreet

Forex today saw the US dollar juggled about in a mixed mood from traders who are becoming dubious over a fickle communication from the White House with respect to the promised tax reforms.

However, that didn't stop Wall Street bulls getting excited on the comments from Treasury Secretary Steven Mnuchin who hopes for a tax overhaul by the end of the year. He also hinted that the Trump administration could consider backdating the tax reform to the start of 2017.

Meanwhile, besides the US JOLTS positive surprise, there really wasn't much for traders to go on today other than trade the relief of Hurricane Irma shifting course over the weekend. Bond prices dropped and investors were finding more reasons to turn risk on. As a result, the US benchmark ten-year yields closed +1.64% higher and the DXY was +0.06%.

Sterling took the show earlier with the UK CPI beat raising prospects for a BoE in the near future and the possibility of MPC voting member Haldane voting for a hike and joining members Ian McCafferty and Michael Saunders who will likely vote in favor of an immediate 25bp rate rise again. GBP ended higher +0.91% but had traded just 2 pips shy from 1.33 the figure as the high for the U.S. session.

Other majors were closing in the green with the euro +0.09% vs the dollar and +0.80% vs the yen. As for safe havens, such as the JPY, it was down -0.72% and the CHF ended -0.45%. Gold was pretty much flat on the day, +0.03%. AUD -0.10% and Kiwi +0.48%.

Key events for the Asia session

There are no scheduled key events

Key notes from US session

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD tumbles to three-day lows around 1.3420

GBP/USD comes under extra selling pressure and revisits the area of multi-day lows near 1.3420 in quite a bearish start to the week. Cable’s decline comes amid the firmer Greenback as investors continue to assess developments in the US-Iran conflict. Moving forward, attention will turn to the UK employment report on Tuesday.

EUR/USD declines to near 1.1400 as US launches fresh strikes on Iran

The EUR/USD pair posts modest losses around 1.1410 during the early Asian trading hours on Tuesday. Renewed tensions between the United States (US) and Iran continue to fuel risk-off sentiment, weighing on the Euro (EUR) against the US Dollar (USD). The ZEW surveys from Germany and the Eurozone are due later on Tuesday. Also, the US ADP employment report will be released.

Gold rises cautiously as Fed hike bets, US‑Iran tensions cap gains

Gold regains positive traction following the previous day's two-way price moves, though it struggles to capitalize on the move and trades below the $4,050 level during the Asian session on Tuesday. Despite a cycle of tit-for-tat strikes between the US and Iran, US Secretary of State Marco Rubio said on Sunday that the US was still open to holding talks with Iran, keeping hopes alive for a potential diplomatic resolution to the conflict.

Grayscale eyes Worldcoin ETF launch following S-1 filing

Grayscale filed an S-1 registration statement with the US Securities and Exchange Commission on Monday to launch a Grayscale Worldcoin ETF. The proposed fund, which would trade on Nasdaq under the ticker GWLD, is designed to give investors exposure to Worldcoin through a traditional brokerage account, eliminating the need to buy the token directly.

Here's where the Canadian Dollar is headed next: 4 bearish scenarios and a bullish one

The Canadian Dollar (CAD) has ridden a volatile first half of the year, with Oil prices surging and then falling as markets danced to the Middle East’s tune. Neither the Bank of Canada nor the Federal Reserve has changed rates so far this year, and the USD/CAD's next move may depend on which of the two banks fails to deliver what markets expect.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.