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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
GBP/USD finds some support near 1.3370 after a modest gap-down opening, though it lacks bullish conviction and remains below 1.3400. The pair suffers from a return of haven demand for the US Dollar amid renewed US-Iran military attacks and the resultant closure of the Strait of Hormuz. All eyes remain on Mideast updates and central bank talks.
EUR/USD stays defensively close to 1.1400 in European trading on Monday. The pair faces headwinds as the US Dollar starts the week on a strong note on increased safe-haven appeal, following the weekend escalation between the US and Iran. However, hawkish ECB expectations limit the major's downside ahead of speeches from the Fed and ECB policymakers.
Gold maintains its offered tone through the Asian session, and currently trades just above $4,050, down nearly 1.40% for the day. A further escalation of tensions between the US and Iran, along with the closure of the Strait of Hormuz, lifts crude oil prices and revives inflation fears. This, in turn, bolsters expectations of higher interest rates by the US Federal Reserve, which benefits the safe-haven US Dollar, and drives flows away from the bullion.
Cardano (ADA) extends its losses, trading below $$0.160 after falling over 14% in the previous week. Despite on-chain data showing continued accumulation by whales, the buying activity has failed to lift prices. Meanwhile, bearish derivatives metrics and a weakening technical outlook indicate further downside for ADA.
Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.
