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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.
The British Pound comes under extra selling pressure at the beginning of the week, dragging GBP/USD to fresh three-day troughs near 1.3350. Cable’s steady drop follows the improved tone in the Greenback as effervescence in the Middle East remains everything but abated.
EUR/USD builds on Friday’s pullback and revisits the 1.1380 region, or multi-day lows, in quite a negative start to the week. The pair’s extra losses come in response to the marked bounce in the US Dollar, supported at the same time by unabated tensions in the Middle East. In the meantime, investors continue to gear up for the upcoming US CPI data and the semiannual testimony by Chair Warsh.
Gold price remains under selling pressure near $3,995 during the early Asian session on Tuesday. The precious metal extends its downside as renewed US-Iran tensions keep inflationary pressures high. Traders await the release of the US June Consumer Price Index inflation report and Federal Reserve Chair Kevin Warsh testifies later on Tuesday.
Bitcoin traded near $62,000 on Monday, holding onto recent gains as investors adopted little conviction ahead of key macroeconomic reports this week. In a report on Monday, QCP analysts highlighted that Tuesday's US Consumer Price Index data could be the first major catalyst to decide the market's direction.
It’s a shaky start to the week for financial markets. The oil price has risen by nearly 4% and Brent crude is trading above $79 per barrel. This comes after more attacks between the US and Iran in the Gulf, and statements from the Iranian regime that it has closed the Strait of Hormuz.
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.
