ไทม์ไลน์ข่าวสาร forex

จันทร์, สิงหาคม 18, 2025

The EUR/GBP cross tumbles to around 0.8630 during the early European session on Monday. The Pound Sterling (GBP) weakens against the Euro (EUR) amid the upbeat UK Gross Domestic Product (GDP) report for the second quarter (Q2).

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The Pound Sterling (GBP) weakens against the Euro (EUR) amid the upbeat UK Gross Domestic Product (GDP) report for the second quarter (Q2). Investors await the UK July Consumer Price Index (CPI) inflation and the European Central Bank (ECB) President Christine Lagarde’s speech later on Wednesday. The UK economy grew at a faster pace than estimated in Q2 despite the shock of US trade tariffs and a weaker jobs market. The Office for National Statistics (ONS) showed on Thursday that UK GDP slowed to 0.3% in the three months to June, down from a rate of 0.7% in Q1. This reading came in stronger than the expectation of a 0.1% expansion in the reported period. The stronger-than-expected UK GDP report could complicate the Bank of England’s (BoE) path to cutting interest rates further, which lifts the GBP against the EUR. On the Euro front, investors will focus on a meeting between US President Donald Trump and Ukrainian leader Volodymyr Zelenskiy later on Monday as the US presses Ukraine to accept a quick peace deal to end Europe's deadliest war in 80 years. Russian leader Vladimir Putin agreed that the US and its European allies could offer Ukraine a security guarantee resembling NATO’s collective defense mandate as part of an eventual deal to end the war. Peace hopes imply lower energy costs and reduced geopolitical uncertainty in the Eurozone, which generally provides some support to the shared currency.  Euro FAQs What is the Euro? The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

The GBP/JPY cross regains positive traction at the start of a new week and climbs back closer to the 200.00 psychological mark during the Asian session.

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Moreover, spot prices remain close to an over one-year high touched last week and could appreciate further amid a combination of supporting factors.The high-stakes meeting between US President Donald Trump and Russian leader Vladimir Putin in Alaska yielded no clear breakthrough, though investors remain hopeful about the chances of ending the prolonged war in Ukraine. This further boosts investors' appetite and undermines the safe-haven Japanese Yen (JPY). The British Pound (GBP), on the other hand, continues to draw support from last week's upbeat UK GDP print, which turns out to be another factor acting as a tailwind for the GBP/JPY cross.Data released last Thursday showed that the UK economy expanded at a quarterly rate of 0.3% in the three months to June 2025. This marked a notable deceleration from a 0.7% growth in the first quarter, though it was well above the market forecast of 0.1%. This, in turn, forced traders to push back their expectations for the next rate cut by the Bank of England (BoE) to November. This, however, still marks a significant divergence in comparison to bets for an imminent rate hike by the Bank of Japan (BoJ) later this year.In fact, data released last Friday showed that Japan's economy expanded more than expected in the second quarter despite US tariff headwinds. This, along with an upward revision of the BoJ's inflation forecast, reaffirmed market speculations that the BoJ will stick to its policy normalization path despite domestic political uncertainty. Hence, it will be prudent to wait for strong follow-through buying before positioning for an extension of the GBP/JPY pair's well-established uptrend witnessed over the past two weeks or so. Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

Gold (XAU/USD) rebounds swiftly from over a two-week low, around the $3,324-3,323 area touched during the Asian session on Monday, and touches a fresh daily top in the last hour.

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The growing acceptance that the US Federal Reserve (Fed) will resume its rate-cutting cycle in September triggers a fresh leg down in the US Treasury bond yields. This, along with some repositing trade ahead of US President Donald Trump's meeting with Ukrainian President Volodymyr Zelenskiy and European leaders to discuss a peace deal with Russia, offers some support to the safe-haven bullion.Meanwhile, the US Dollar (USD) ticks higher amid diminishing odds for a more aggressive policy easing by the Fed, which might keep a lid on any meaningful appreciating move for the non-yielding Gold. Apart from this, the prevalent risk-on mood warrants some caution for the XAU/USD bulls. Traders might also opt to wait for more cues about the Fed's rate-cut path before placing fresh directional bets. Hence, the focus will remain glued to the release of the FOMC Minutes and Fed Chair Jerome Powell's speech at the Jackson Hole Symposium during the latter part of the week.Daily Digest Market Movers: Gold price draws support from sliding US bond yields ahead of Trump-Zelenskyy meetingTraders now seem convinced that the US Federal Reserve will lower borrowing costs at its September meeting. Moreover, the CME Group's FedWatch Tool indicates the possibility of at least two 25-basis-point Fed rate cuts by the end of this year.Ukrainian President Volodymyr Zelensky will meet US President Donald Trump for bilateral talks on Monday. Later, the key European leaders will be joining a larger conversation to discuss a peace deal to end Europe's deadliest war in 80 years.Data released last Thursday showed that US producer prices rose in July at the fastest monthly pace since 2022 and tempered bets for a jumbo 50 bps interest rate cut by the Fed. This assists the US Dollar in attracting some buyers at the start of a new week.Meanwhile, the preliminary data from the University of Michigan showed that the one-year inflation expectations climbed to 4.9% from 4.5% and the five-year forecast increased to 3.9% from 3.4%, indicating a gain of momentum in price pressures.Additional details showed that the US Consumer Sentiment Index unexpectedly dropped to 58.6 in August from 61.7 in the previous month, signalling a poor backdrop in public confidence. Moreover, the Expectations Index eased to 57.2 from 57.7.Earlier, the US Census Bureau reported on Friday that the US Retail Sales increased by 0.5% on a monthly basis in July. This followed the 0.9% rise (revised up from 0.6%) recorded in the previous month and matched consensus estimates.Traders now look forward to the release of the FOMC meeting Minutes on Wednesday and Fed Chair Jerome Powell's speech at the Jackson Hole Symposium during the latter part of the week for more cues about the near-term rate-cut path.Apart from this, geopolitical developments will play a key role in influencing demand for traditional safe-haven assets and provide some meaningful impetus to the Gold price.Gold intraday bullish technical setup backs the case for a further appreciating moveAn intraday bounce from the 61.8% Fibonacci retracement level of the upswing from the July monthly low and a subsequent move beyond the 200-period Simple Moving Average (SMA) on the 4-hour chart favor the XAU/USD bulls. Moreover, oscillators on the said chart have again started gaining positive traction and back the case for a further intraday appreciating move. Some follow-through buying beyond the $3,355 area, or the 50% retracement level, will reaffirm the positive outlook and lift the Gold price to the next relevant hurdle near the $3,372-3,374 region, or the 23.6% Fibo. retracement level. The momentum could extend further and allow the commodity to reclaim the $3,400 mark before aiming to test the monthly peak, around the $3,408-3,410 area.On the flip side, the 200-SMA on H4, around the $3,346 region, now seems to protect the immediate downside ahead of the $3,324-3,323 zone, or the 61.8% Fibo. retracement level. Failure to defend the said support levels could make the Gold price vulnerable to weaken further towards the $3,300 round figure en route to the $3,283-3,282 horizontal zone and the $3,268 region, or the late June swing low. Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

EUR/USD inches lower after registering around 0.5% gains in the previous session, trading around 1.1910 during the Asian hours on Monday. On the daily chart, technical analysis indicates a strengthening of a bullish bias, as the pair continues to trade within an ascending channel pattern.

.fxs-major-currency-prices-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-major-currency-prices-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-major-currency-prices-content{color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:8px 16px}table.fxs-major-currency-prices-currency-prices-table{width:100%;text-align:center;border-collapse:collapse;font-size:1rem}table.fxs-major-currency-prices-currency-prices-table th{background-color:#f2f2f2}table.fxs-major-currency-prices-currency-prices-table td{color:#fff}table.fxs-major-currency-prices-currency-prices-table td.green{background-color:#9cd6cd}table.fxs-major-currency-prices-currency-prices-table td.red{background-color:#faafb5}table.fxs-major-currency-prices-currency-prices-table td.blue-grey{background-color:#888a93}.fxs-major-currency-prices-currency-prices-legend{font-size:11px;margin:8px;color:#49494f}@media (min-width:680px){.fxs-major-currency-prices-content{font-size:16px;line-height:21.6px}.fxs-major-currency-prices-title{font-size:19.2px;line-height:27.2px}}.fxs-major-currency-prices-currency-price td.dark-green{background-color:#39ad9a}.fxs-major-currency-prices-currency-price td.light-green{background-color:#9cd6cd}.fxs-major-currency-prices-currency-price td.gray{background-color:#888a93}.fxs-major-currency-prices-currency-price td.light-red{background-color:#faafb5}.fxs-major-currency-prices-currency-price td.strong-red{background-color:#f55e6a}EUR/USD may find its immediate barrier at the six-week high of 1.1789.The bullish bias prevails as the 14-day Relative Strength Index holds above the 50 mark.The initial support appears at the ascending channel’s lower boundary around 1.1690.EUR/USD inches lower after registering around 0.5% gains in the previous session, trading around 1.1910 during the Asian hours on Monday. On the daily chart, technical analysis indicates a strengthening of a bullish bias, as the pair continues to trade within an ascending channel pattern.The 14-day Relative Strength Index (RSI) is positioned above the 50 level, strengthening the bullish outlook. Additionally, the EUR/USD pair remains above the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is stronger.On the upside, the EUR/USD pair could target the six-week high of 1.1789, reached on July 24, followed by the 1.1830, the highest since September 2021. Further advances will support the currency pair to test the upper boundary of the ascending channel around 1.1870.The EUR/USD pair could find its primary support at the ascending channel’s lower boundary around 1.1690, followed by the nine-day EMA at 1.1666. A break below this crucial support zone would weaken the short-term price momentum and put downward pressure on the pair to test the 50-day EMA at 1.1585. Further declines would prompt the pair to navigate the area around the two-month low at 1.1391, which was recorded on August 1.EUR/USD: Daily Chart Euro PRICE Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the New Zealand Dollar. USD EUR GBP JPY CAD AUD NZD CHF USD 0.07% -0.06% 0.13% -0.10% -0.15% -0.23% 0.07% EUR -0.07% -0.14% 0.05% -0.17% -0.21% -0.34% -0.00% GBP 0.06% 0.14% 0.10% -0.03% -0.07% -0.20% 0.09% JPY -0.13% -0.05% -0.10% -0.22% -0.27% -0.35% -0.07% CAD 0.10% 0.17% 0.03% 0.22% -0.07% -0.13% 0.13% AUD 0.15% 0.21% 0.07% 0.27% 0.07% -0.13% 0.16% NZD 0.23% 0.34% 0.20% 0.35% 0.13% 0.13% 0.26% CHF -0.07% 0.00% -0.09% 0.07% -0.13% -0.16% -0.26% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

The USD/CHF pair edges lower to near 0.8060 during the Asian trading session on Monday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}USD/CHF faces selling pressure as dovish Fed bets have battered the US Dollar.Traders are confident that the Fed will cut interest rates in the September meeting.Investors await Trump-Zelenskyy meeting to get cues whether Ukraine is ready for peace agreement with Russia.The USD/CHF pair edges lower to near 0.8060 during the Asian trading session on Monday. The Swiss Franc pair ticks down as the US Dollar (USD) trades with caution near its almost three-week low, with traders remaining confident the Federal Reserve (Fed) will resume its monetary expansion cycle, which it paused after the December 2024 meeting.During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades cautiously around 97.80.According to the CME FedWatch tool, the probability of the Fed to cut interest rates in September is 82.6%. Fed’s interest rate cut speculation has intensified due to cooling United States (US) labor market conditions.Meanwhile, investors await Jackson Hole Symposium to get fresh cues about the US interest rate outlook, which is scheduled for August 21-23.In Monday’s session, financial market participants will pay close attention to meeting between US President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and NATO members at the White House to discuss terms laid down by Russian leader Vladimir Putin for ending war in Ukraine.In the Swiss region, investors await Q2 Industrial Production data, which will be published at 06:30 GMT. In the previous quarter, Industrial Production rose at an annual pace of 8.5%. US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

The EUR/JPY cross attracts some buyers to around 172.60 during the Asian trading hours on Monday. The uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ) and risk-on sentiment weigh on the Japanese Yen (JPY) and act as a tailwind for the cross.

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The uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ) and risk-on sentiment weigh on the Japanese Yen (JPY) and act as a tailwind for the cross. The European Central Bank (ECB) President Christine Lagarde's speech will be in the spotlight later on Wednesday. According to the daily chart, the constructive outlook of EUR/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA). Further upside looks favorable as the 14-day Relative Strength Index (RSI) stands above the midline around 58.00. This displays a bullish momentum in the near term. On the bright side, the first upside barrier emerges near 173.00, representing the high of August 13 and the psychological level. Sustained trading above this level could pick up more momentum and aim for 173.50, the upper boundary of the Bollinger Band. Further north, the next resistance level is seen at 173.90, the high of July 28.In the bearish case, the low of August 15 at 171.51 acts as an initial support level for EUR/JPY. The next contention level to watch is 170.35, the lower limit of the Bollinger Band. A breach of this level could drag the cross toward the 170.00 round mark. EUR/JPY daily chart Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

The Indian Rupee (INR) opens on a positive note against the US Dollar (USD) on Monday after an extended weekend due to a holiday on Friday on account of Independence Day.

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The USD/INR pair as the Indian Rupee has strengthened, following the announcement by India’s Prime Minister (PM) Narendra Modi, while raising the Indian Flag on the eve of Independence Day, that the government will bring “next generation Goods and Services Tax (GST) reforms” to boost domestic consumption.While praising India’s decadal-long journey in achieving self-reliance and transformation, and highlighting achievements of GST, Indian PM Modi vowed to bring a wave of reforms in the taxation system to ease the burden on middle-class households and boost demand, which will come by Diwali this year.Soon after Indian PM Modi’s announcement of tax reforms, the Union Finance Ministry released a blueprint that aims to simplify the GST structure by narrowing four tax slabs to two. According to the blueprint, two tax slabs 12% and 28% will be scrapped, and items in these brackets would move to the remaining labels of 5% and 18%.This comes at a time when trade tensions between the United States (US) and India have heated up as the former has raised tariffs on imports from New Delhi for buying Oil from Russia. Additionally, Washington has postponed trade talks with New Delhi, which were scheduled for Aug 25-29 in India.Lower burden of taxes on Indian households could prove to a major stroke to boost consumption – a move that could prompt inflationary pressures, which have been softened significantly in past few months. In July, India’s retail Consumer Price Index (CPI) came in at 1.55% on year, the lowest level seen since June 2017.Meanwhile, Indian stock markets have opened on a gap-up note on the announcement of taxation reforms. Nifty50 is up 1.5% near the psychological level of 25,000, the highest level seen this month.Daily digest market movers: Indian Rupee gains against US DollarGlobally, investors await US President Donald Trump’s meeting with European Union (EU) leaders and Ukrainian President Volodymyr Zelenskiy at the White House to discuss ending the war in Ukraine. This came after a summit in Alaska over the weekend in which Trump and Russian leader Vladimir Putin discussed a peace agreement between Moscow and Kyiv.Ahead of the Trump-Zelenskyy meeting, the US President has urged Kyiv to make a deal with Russia. Trump told Ukrainian President Volodymyr Zelenskiy that Putin had offered to freeze most front lines if Kyiv ceded all of Donetsk, the industrial region that is one of Moscow’s main targets, Reuters reported.Signs of a Russia-Ukraine trade truce would be favorable for the Indian Rupee as US President Trump could roll back penalty tariffs imposed on New Delhi for buying Russian Oil.Meanwhile, the upside move in the USD/INR pair is also driven by weakness in the US Dollar. The US Dollar. During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades cautiously near an almost three-week low of around 97.86. The US Dollar faces selling pressure as traders have remained confident that the Federal Reserve (Fed) could reduce interest rates in the September monetary policy meeting.According to the CME FedWatch tool, the probability of the Fed cutting interest rates in September is 82.6%.Traders have backed the Fed’s interest rate cuts in September due to cooling labor market conditions. However, the fresh lot of the US CPI and Producer Price Index (PPI) showed mixed responses. The US PPI report signaled that firms have started passing the tariff effect to consumers, while its impact remained absent in the consumer inflation data.On Friday, the comments from Chicago Fed Bank President Austan Goolsbee, in an interview with CNBC, signaled that he wants to see one more supporting inflation data to get reassured before backing interest rate cuts in September. "I feel like we still need another one at least to figure out if we’re still on the golden path”, Goolsbee said.This week, investors will pay close attention to Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium to get fresh cues about whether the US central bank will cut interest rates next month.Technical Analysis: USD/INR slumps to near 87.60USD/INR opens lower around 87.60 on Monday after an extended weekend, the lowest level seen in over a week. However, the near-term trend of the pair remains bullish as the 20-day Exponential Moving Average (EMA) slopes higher around 87.35.The 14-day Relative Strength Index (RSI) falls slightly below 60.00. A fresh bullish momentum could emerge if the RSI returns above that level.Looking down, the 20-day EMA will act as key support for the major. On the upside, the August 5 high around 88.25 will be a critical hurdle for the pair.  Indian Rupee FAQs What are the key factors driving the Indian Rupee? The Indian Rupee (INR) is one of the most sensitive currencies to external factors. The price of Crude Oil (the country is highly dependent on imported Oil), the value of the US Dollar – most trade is conducted in USD – and the level of foreign investment, are all influential. Direct intervention by the Reserve Bank of India (RBI) in FX markets to keep the exchange rate stable, as well as the level of interest rates set by the RBI, are further major influencing factors on the Rupee. How do the decisions of the Reserve Bank of India impact the Indian Rupee? The Reserve Bank of India (RBI) actively intervenes in forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, the RBI tries to maintain the inflation rate at its 4% target by adjusting interest rates. Higher interest rates usually strengthen the Rupee. This is due to the role of the ‘carry trade’ in which investors borrow in countries with lower interest rates so as to place their money in countries’ offering relatively higher interest rates and profit from the difference. What macroeconomic factors influence the value of the Indian Rupee? Macroeconomic factors that influence the value of the Rupee include inflation, interest rates, the economic growth rate (GDP), the balance of trade, and inflows from foreign investment. A higher growth rate can lead to more overseas investment, pushing up demand for the Rupee. A less negative balance of trade will eventually lead to a stronger Rupee. Higher interest rates, especially real rates (interest rates less inflation) are also positive for the Rupee. A risk-on environment can lead to greater inflows of Foreign Direct and Indirect Investment (FDI and FII), which also benefit the Rupee. How does inflation impact the Indian Rupee? Higher inflation, particularly, if it is comparatively higher than India’s peers, is generally negative for the currency as it reflects devaluation through oversupply. Inflation also increases the cost of exports, leading to more Rupees being sold to purchase foreign imports, which is Rupee-negative. At the same time, higher inflation usually leads to the Reserve Bank of India (RBI) raising interest rates and this can be positive for the Rupee, due to increased demand from international investors. The opposite effect is true of lower inflation.

Gold prices rose in India on Monday, according to data compiled by FXStreet.

.fxs-related-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left}.fxs-related-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}.fxs-related-module-related-link a{text-decoration:none;color:#1b1c23;font-weight:700;font-size:16px;font-style:normal;line-height:20px}.fxs-related-module-related-link a:hover,.fxs-related-module-related-link:hover,.fxs-related-module-related-link:hover a{color:#e4871b}.fxs-related-module-related-link a:hover{text-decoration:none}@media (min-width:680px){.fxs-related-module-title{font-size:19.2px;line-height:27.2px}.fxs-related-module-related-link a{font-size:19.2px;line-height:25.92px}} .fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} Gold prices rose in India on Monday, according to data compiled by FXStreet. The price for Gold stood at 9,426.44 Indian Rupees (INR) per gram, up compared with the INR 9,373.18 it cost on Friday. The price for Gold increased to INR 109,951.10 per tola from INR 109,325.70 per tola on friday. Unit measure Gold Price in INR 1 Gram 9,426.44 10 Grams 94,266.89 Tola 109,951.10 Troy Ounce 293,199.50   2025 Gold Forecast Guide [PDF] Download your free copy of the 2025 Gold Forecast FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.   Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up. (An automation tool was used in creating this post.)

Japan Tertiary Industry Index (MoM) came in at 0.5%, above expectations (0.3%) in June

AUD/JPY appreciates after registering losses in the previous two consecutive sessions, trading around 96.10 during the Asian hours on Monday.

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The currency cross gains ground as the Japanese Yen (JPY) struggles amid ongoing uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ).Japan’s economy outpaced forecasts in the second quarter, lifted by net exports despite headwinds from US tariffs. Japan's Economy Minister Ryosei Akazawa stated on Friday that the economy is recovering modestly. However, Akazawa highlighted that risks from US trade policies could weigh on domestic growth, while rising prices could dampen consumer sentiment and hurt private consumption.Meanwhile, Japanese officials dismissed US Treasury Secretary Scott Bessent’s claim that the Bank of Japan is 'behind the curve,' framing it as pressure to hike rates. However, BoJ Governor Kazuo Ueda maintained caution, stressing underlying inflation remains below the 2% target.The AUD/JPY cross also draw support from improved Australian Dollar (AUD) following an upbeat jobs data for July. The recent employment figures eased concerns about a weakening labor market, lessening the urgency for the Reserve Bank of Australia (RBA) to continue with another rate cut in September.RBA Governor Michele Bullock stated last week that current forecasts suggest the cash rate may need to be reduced to ensure price stability. However, Bullock emphasized the Board’s meeting-by-meeting approach and refrained from making any commitments on rate moves should financial markets experience a bout of volatility. Interest rates FAQs What are interest rates? Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%. If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation. How do interest rates impact currencies? Higher interest rates generally help strengthen a country’s currency as they make it a more attractive place for global investors to park their money. How do interest rates influence the price of Gold? Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank. If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold. What is the Fed Funds rate? The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure. Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a flat note near 97.85 during the Asian trading hours on Monday.

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Traders prefer to wait on the sidelines ahead of a crucial meeting between US President Donald Trump and Ukrainian leader Volodymyr Zelenskiy later on Monday. The Federal Reserve's (Fed) Jackson Hole symposium will take center stage later on Friday. US President Donald Trump said after his talks with Russian President Vladimir Putin in Alaska on Friday that he will urge Zelenskiy to make a quick deal and sounded receptive to Putin’s demand that Ukraine give up large swathes of land, per Bloomberg. Ukrainian leader facing US pressure to reach a peace deal with Russia that involves ceding territory. Traders will closely watch the developments surrounding Trump-Zelenskiy talks. Any signs of escalating tensions could boost the safe-haven flows, supporting the US Dollar against its rivals. Data released by the US Census Bureau on Friday revealed that the US Retail Sales increased by 0.5%  MoM in July, versus a rise of 0.9% recorded in June (revised from 0.6%). This reading came in line with the market consensus. On an annual basis, Retail Sales rose 3.9% in July, compared to 4.4%, matching the expectations.Meanwhile, the Consumer Expectations Index eased to 57.2 in August from 57.7 in July, highlighting some change of view regarding the months ahead. The one-year inflation expectations ticked up to 4.9% from 4.5%, and the five-year forecast increased to 3.9% from 3.4%.These US economic reports have kept the case for a September Fed interest rate cut intact, which might weigh on the DXY in the near term. Money markets are now pricing in nearly a 93% possibility of a 25 basis points (bps) Fed rate cut in September, according to the CME FedWatch tool. However, there are some misgivings about what happens from there, with a 55% chance of another reduction in October and just a 43% probability of a third move in December. US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

USD/CAD loses ground after two days of gains, trading around 1.3800 during the Asian hours on Monday. The pair depreciates as the US Dollar (USD) could face further challenges amid the prevailing dovish tone surrounding the US Federal Reserve’s (Fed) policy outlook for September.

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The pair depreciates as the US Dollar (USD) could face further challenges amid the prevailing dovish tone surrounding the US Federal Reserve’s (Fed) policy outlook for September.Recent US economic data support the case for a Federal Reserve (Fed) rate cut in September. The preliminary Michigan Consumer Sentiment Index fell to 58.6 in August from 61.7 in July, falling short of the expected 62.0 reading. Meanwhile, the US Retail Sales grew by 0.5% month-over-month in July, as expected, against a rise of 0.9% seen in June. Retail Sales Control Group rose by 0.5%, compared to the 0.8% increase prior.However, traders adopt caution as Trump administration has broadened its 50% tariffs on steel and aluminum imports, including 407 new product codes in the US Harmonized Tariff Schedule. US President Donald Trump also told reporters he intends to issue further announcements on steel tariffs, along with new levies aimed at semiconductor imports.Canada’s inflation is cooler but not “mission accomplished” as the Bank of Canada’s (BoC) preferred inflation gauge, the trimmed mean, stuck at an elevated 3% in June, giving the central bank little incentive to speed up rate cuts. The BoC reduced the policy rate to 2.75% in July but vowed to proceed cautiously amid persistent service-price stickiness and the need to weigh opposing forces from tariffs and softening demand. Canadian Dollar FAQs What key factors drive the Canadian Dollar? The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive. How does the price of Oil impact the Canadian Dollar? The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD. How does inflation data impact the value of the Canadian Dollar? While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar. How does economic data influence the value of the Canadian Dollar? Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.

The Japanese Yen (JPY) kicks off the new week on a weaker note amid a combination of factors, which, along with a modest US Dollar (USD) uptick, lifts the USD/JPY pair to mid-147.00s during the Asian session.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The Japanese Yen drifts lower amid receding safe-haven demand and BoJ rate hike uncertainty.Reduced bets for a jumbo Fed rate cut in September support the USD and the USD/JPY pair.The divergent BoJ-Fed policy expectations warrant caution before placing aggressive bullish bets.The Japanese Yen (JPY) kicks off the new week on a weaker note amid a combination of factors, which, along with a modest US Dollar (USD) uptick, lifts the USD/JPY pair to mid-147.00s during the Asian session. The uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ), along with the prevalent risk-on environment, is seen undermining the safe-haven JPY. However, firming expectations that the BoJ will stick to its policy normalization path might hold back the JPY bears from placing aggressive bets.Meanwhile, a relatively hawkish BoJ marks a significant divergence in comparison to other major central banks, including the Federal Reserve (Fed), which is anticipated to resume its rate-cutting cycle in September. This could act as a headwind for the USD and benefit the lower-yielding JPY, warranting some caution before positioning for any further appreciating move for the USD/JPY pair. Traders might also opt to move to the sidelines ahead of Fed Chair Jerome Powell's speech at the Jackson Hole Symposium later this week.Japanese Yen is undermined by hopes for an end to the Russia-Ukraine warThe high-stakes meeting between US President Donald Trump and Russian leader Vladimir Putin in Alaska yielded no clear breakthrough. Investors, however, remain hopeful that the dialogue has increased the chances of ending the prolonged war in Ukraine.Trump said early Monday that Ukrainian President Volodymyr Zelenskiy can end the war with Russia almost immediately if he wants to. Trump and Zelenskiy will have a bilateral meeting prior to the European leaders joining a larger conversation later today.The development helps ease geopolitical risks and remains supportive of the prevalent risk-on environment. This, in turn, prompts some selling around the safe-haven Japanese Yen during the Asian session on Monday amid the Bank of Japan rate-hike uncertainty.Domestic political uncertainty following the ruling Liberal Democratic Party’s loss in the upper house election, along with concern about the negative economic impact of higher US tariffs, suggests that the prospects for further BoJ policy normalization could be delayed.Meanwhile, data released on Friday showed that Japan's economy expanded more than expected in the second quarter despite US tariff headwinds. This, along with an upward revision of the BoJ's inflation forecast, keeps the door open for a rate hike by the year-end.In contrast, market participants are pricing in about 85% chances that the Federal Reserve will lower borrowing costs at the next policy meeting in September. Moreover, the US central bank is expected to deliver at least two 25-basis-point interest rate cuts in 2025.On the economic data front, the US Census Bureau reported on Friday that the US Retail Sales increased by 0.5% on a monthly basis in July. This followed the 0.9% increase (revised up from 0.6%) recorded in June and came in line with the market expectation.However, the preliminary data from the University of Michigan showed that the US Consumer Sentiment Index unexpectedly dropped to 58.6 from 61.7 in July, signalling a poor backdrop in public confidence. Moreover, the Expectations Index eased to 57.2 from 57.7.However, the one-year inflation expectations climbed to 4.9% from 4.5% and the five-year forecast increased to 3.9% from 3.4%. This comes on top of the strong US Producer Price Index released last Thursday and points to some gain of momentum in price pressures.This, in turn, further tempers bets for a more aggressive policy easing by the Fed and bets for a jumbo rate cut in September, which offers some support to the US Dollar and the USD/JPY pair. The lack of any meaningful buying, however, warrants caution for bulls.Traders might also refrain from placing aggressive directional bets and opt to wait for the release of the FOMC meeting minutes on Wednesday. Apart from this, Fed Chair Jerome Powell's speech at the Jackson Hole Symposium is expected to provide rate-cut cues and some meaningful impetus.USD/JPY is likely to confront a stiff hurdle and remain capped near the 148.00 markThe USD/JPY pair has been oscillating in a familiar range over the past two weeks or so. This points to a consolidation phase and makes it prudent to wait for an eventual break on either side before positioning for the next leg of a directional move amid neutral technical indicators on the daily chart.Meanwhile, an intraday rise beyond the 23.6% Fibonacci retracement level of the downfall from the monthly swing high backs the case for additional gains. Any further move up beyond the 200-period Simple Moving Average (SMA) on the 4-hour chart, however, is likely to confront stiff resistance near the 148.00 mark, or the 38.2% Fibo. retracement level.A sustained strength and acceptance above the said handle might shift the near-term bias in favor of bulls. The USD/JPY pair might then climb to the 148.55-148.60 region, or the 50% retracement level, and extend the positive momentum further towards the 149.00 round figure.On the flip side, the 147.10-147.00 area could offer immediate support, below which the USD/JPY pair could retest the multi-week low, around the 146.20 zone, touched last Thursday, Some follow-through selling, leading to a subsequent fall below the 146.00 round figure, will be seen as a fresh trigger for bearish traders and make spot prices vulnerable to extend the fall to the the 145.40-145.30 region en route to the 145.00 psychological mark. Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen. How does the differential between Japanese and US bond yields impact the Japanese Yen? Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

The Australian Dollar (AUD) extends its gains for the second consecutive session on Monday. The AUD/USD pair holds gains as the US Dollar (USD) could face challenges amid the prevailing dovish tone surrounding the US Federal Reserve’s (Fed) policy outlook for September.

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The AUD/USD pair holds gains as the US Dollar (USD) could face challenges amid the prevailing dovish tone surrounding the US Federal Reserve’s (Fed) policy outlook for September.The AUD also received support as an upbeat Australian jobs data for July eased concerns about a weakening labor market, lessening the urgency for the Reserve Bank of Australia (RBA) to continue with another rate cut in September.RBA Governor Michele Bullock stated last week that current forecasts suggest the cash rate may need to be reduced to ensure price stability. However, Bullock emphasized the Board’s meeting-by-meeting approach and refrained from making any commitments on rate moves should financial markets experience a bout of volatility.Australian Dollar advances as US Dollar steadies amid dovish Fed outlookThe US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, is holding ground after registering losses in the previous session and trading around 97.90 at the time of writing. The Greenback may further lose ground as recent US economic data support the case for a Federal Reserve (Fed) rate cut in September.The Trump administration has broadened its 50% tariffs on steel and aluminum imports, taking effect on August 18. Friday’s notification has included 407 new product codes in the US Harmonized Tariff Schedule. US President Donald Trump also told reporters he intends to issue further announcements on steel tariffs, along with new levies aimed at semiconductor imports.President Trump said on Saturday that Ukraine should seek a deal to end the war with Russia, arguing that “Russia is a very big power, and they’re not.” His remarks followed reports from a recent summit in Alaska that Russian President Vladimir Putin had demanded additional Ukrainian territory, per Reuters.The preliminary Michigan Consumer Sentiment Index fell to 58.6 in August from 61.7 in July, falling short of the expected 62.0 reading. Meanwhile, the US Retail Sales grew by 0.5% month-over-month in July, as expected, against a rise of 0.9% seen in June. Retail Sales Control Group rose by 0.5%, compared to the 0.8% increase prior.US Treasury Secretary Scott Bessent said in an interview on Wednesday that short-term Fed interest rates should be 1.5-1.75% lower than the current benchmark rate at an effective 4.33%. Bessent added that there is a good chance the central bank could opt for a 50-basis-point rate cut in September.US President Donald Trump shared his "paper calculation" that Fed interest rates should be at or near 1%. Trump also noted interest rates should be three or four points lower. Interest rates are just a paper calculation, he added.US Treasury Secretary Scott Bessent said on Wednesday that US and Chinese trade officials will meet again within the next two to three months to discuss the future of their economic ties. “The US would need to see sustained progress on curbing fentanyl flows from China, potentially over months or even a year, before considering tariff reductions,” Bessent said.China’s Retail Sales rose 3.7% year-over-year in July, falling short of 4.6% expected and 4.8% in June. Meanwhile, Industrial Production increased 5.7% YoY, compared to the 5.9% forecast and 6.8% seen previously.Australia’s Employment Change arrived at 24.5K in July from 1K in June (revised from 2K), against the consensus forecast of 25K. Meanwhile, the Unemployment Rate fell to 4.2%, as expected, from 4.3% in June.The Reserve Bank of Australia (RBA) delivered a 25 basis points (bps) interest rate cut on Tuesday, as widely expected, bringing the Official Cash Rate (OCR) to 3.6% from 3.85% at the August policy meeting.Australian Dollar rebounds toward ascending channel after breaking above nine-day EMAThe AUD/USD pair is trading around 0.6510 on Monday, with technical analysis on the daily chart suggesting a potential for a bullish recovery. The pair has rebounded and is attempting to return to the ascending channel pattern. The pair has moved above the nine-day Exponential Moving Average (EMA), signaling that short-term momentum is strengthening. Moreover, the 14-day Relative Strength Index (RSI) is positioned on the 50 level, suggesting that market bias is neutral. Further movements will offer a clear directional trend.The successful return to the ascending channel would reinforce the bullish bias and support the AUD/USD pair to target the monthly high at 0.6568, reached on August 14. A break above this level may prompt the pair to approach the channel’s upper boundary around 0.6610, followed by the nine-month high of 0.6625, which was recorded on July 24.On the downside, the nine-day EMA at 0.6512 is acting as the immediate support, followed by the 50-day EMA at 0.6503 and a psychological level of 0.6500. A break below this crucial support zone would weaken the short- and medium-term price momentum and put downward pressure on the AUD/USD pair to navigate the region around the two-month low of 0.6419, recorded on August 1.AUD/USD: Daily Chart Australian Dollar PRICE Today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen. USD EUR GBP JPY CAD AUD NZD CHF USD 0.10% 0.03% 0.21% -0.06% -0.07% -0.11% 0.11% EUR -0.10% -0.08% 0.09% -0.17% -0.16% -0.24% 0.02% GBP -0.03% 0.08% 0.08% -0.08% -0.08% -0.16% 0.05% JPY -0.21% -0.09% -0.08% -0.24% -0.25% -0.28% -0.08% CAD 0.06% 0.17% 0.08% 0.24% -0.04% -0.05% 0.13% AUD 0.07% 0.16% 0.08% 0.25% 0.04% -0.08% 0.14% NZD 0.11% 0.24% 0.16% 0.28% 0.05% 0.08% 0.18% CHF -0.11% -0.02% -0.05% 0.08% -0.13% -0.14% -0.18% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote). Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.80 during the Asian trading hours on Monday. The WTI tumbles as traders remain cautious ahead of US President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskiy on Monday. 

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The WTI tumbles as traders remain cautious ahead of US President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskiy on Monday. Trump said after his talks with Russian President Vladimir Putin in Alaska on Friday that he will urge Zelenskiy to make a quick deal, and sounded receptive to Putin’s demand that Ukraine give up large swathes of land, per Bloomberg. Trump early Monday further stated that Zelenskiy can end the war with Russia almost immediately if he wants to, or he can continue to fight.Ukrainian leader facing US pressure to reach a peace deal with Russia that involves ceding territory. Oil traders will closely monitor the developments surrounding Trump-Zelenskiy talks. Any signs of escalating tensions could boost the WTI price, while a potential ceasefire could exert some selling pressure on the black gold.Also, investors are looking for more cues that the US may move closer to Russia in a bid to exploit vast, untapped Arctic energy resources, in a dramatic geopolitical shift that puts pressure on Europe to quickly increase defense expenditure, according to Reuters. Bank of America strategist Michael Hartnett emphasized that US-Russia Arctic drilling initiatives have the potential to extract 15% of the world's undiscovered oil and 30% of the world's undiscovered natural gas, leading to a significant energy bear market.Meanwhile, the expectation that the US Federal Reserve (Fed) will cut rates at the September meeting could undermine the US Dollar (USD) and lift the USD-denominated commodity prices. According to the CME FedWatch tool, Fed funds futures traders are now pricing in nearly a 93% chance of a 25 basis point (bps) cut next month, up from an 85% chance last week. WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
 

EUR/USD edges lower after registering around 0.5% gains in the previous session, trading around 1.1690 during the Asian hours on Monday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/USD could recover as the dovish tone surrounding the Fed’s September policy outlook persists.US economic data continue to support the case for a Federal Reserve rate cut in September.President Trump said that Ukraine should pursue a deal to bring an end to its war with Russia.EUR/USD edges lower after registering around 0.5% gains in the previous session, trading around 1.1690 during the Asian hours on Monday. However, the pair may further regain its ground as the US Dollar (USD) could struggle, driven by prevailing dovish tone surrounding the US Federal Reserve’s (Fed) policy outlook for September. Traders will likely observe the preliminary reading of the US S&P Global Purchasing Managers Index (PMI) data due later in the day.US economic data keep the case for a September Federal Reserve (Fed) interest rate cut intact. Michigan Consumer Sentiment Index fell to 58.6 in August from 61.7 in July, falling short of the expected 62.0 reading. Meanwhile, the US Retail Sales increased by 0.5% on a monthly basis in July, compared to a rise of 0.9% seen in June. This reading came in line with the market consensus.Money markets are now pricing in nearly a 93% odds of a 25 basis points (bps) Fed rate cut in September, according to the CME FedWatch tool.The Trump administration has broadened its 50% tariffs, take effect August 18, on steel and aluminum imports to include 407 new product codes to the US Harmonized Tariff Schedule. President Trump also told reporters he intends to issue further announcements on steel tariffs, along with new levies aimed at semiconductor imports.US President Donald Trump said Saturday that Ukraine should seek a deal to end the war with Russia, arguing that “Russia is a very big power, and they’re not.” His remarks followed reports from a recent summit in Alaska that Russian President Vladimir Putin had demanded additional Ukrainian territory, per Reuters.Traders will likely watch upcoming inflation data from Eurozone (EU) and Germany, which could influence the case that the European Central Bank (ECB) can pause its easing cycle. Euro FAQs What is the Euro? The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

The NZD/USD pair gains some positive traction at the start of a new week and holds comfortably above the 0.5900 mark during the Asian session, though it lacks bullish conviction.

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The upbeat market mood is seen acting as a tailwind for the risk-sensitive Kiwi, though a modest US Dollar (USD) uptick acts as a headwind for the currency pair as traders seem reluctant ahead of this week's key central bank events.The high-stakes meeting between US President Donald Trump and Russian leader Vladimir Putin in Alaska yielded no clear breakthrough. Investors, however, remain hopeful that the start of a dialogue has increased the chances of ending the prolonged war in Ukraine. This, in turn, remains supportive of the upbeat market mood, which, in turn, is seen as a key factor benefiting the New Zealand Dollar (NZD).The upside for the NZD/USD pair, however, remains capped in the wake of the emergence of some US Dollar (USD) buying. Apart from this, expectations that the Reserve Bank of New Zealand (RBNZ) will lower interest rates at its policy meeting this Wednesday amid weak labour market data, subdued inflation expectations, and slowing wage growth hold back the NZD bulls from placing aggressive bets.Furthermore, traders might opt to wait for more cues about the Federal Reserve's (Fed) rate cut path before positioning for the next leg of a directional move for the NZD/USD pair. Hence, the focus will remain glued to comments from Fed Chair Jerome Powell at the upcoming Jackson Hole Symposium, which will influence the USD price dynamics and provide some meaningful impetus to the currency pair. Economic Indicator RBNZ Interest Rate Decision The Reserve Bank of New Zealand (RBNZ) announces its interest rate decision after each of its seven scheduled annual policy meetings. If the RBNZ is hawkish and sees inflationary pressures rising, it raises the Official Cash Rate (OCR) to bring inflation down. This is positive for the New Zealand Dollar (NZD) since higher interest rates attract more capital inflows. Likewise, if it reaches the view that inflation is too low it lowers the OCR, which tends to weaken NZD. Read more. Next release: Wed Aug 20, 2025 02:00 Frequency: Irregular Consensus: 3% Previous: 3.25% Source: Reserve Bank of New Zealand Why it matters to traders? The Reserve Bank of New Zealand (RBNZ) holds monetary policy meetings seven times a year, announcing their decision on interest rates and the economic assessments that influenced their decision. The central bank offers clues on the economic outlook and future policy path, which are of high relevance for the NZD valuation. Positive economic developments and upbeat outlook could lead the RBNZ to tighten the policy by hiking interest rates, which tends to be NZD bullish. The policy announcements are usually followed by interim Governor Christian Hawkesby's press conference.

US President Donald Trump said early Monday that Ukrainian President Volodymyr Zelenskiy can end the war with Russia almost immediately if he wants to, or he can continue to fight.

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On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1322 as compared to Friday's fix of 7.1371 and 7.1793 Reuters estimate.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1322 as compared to Friday's fix of 7.1371 and 7.1793 Reuters estimate. PBOC FAQs What does the People's Bank of China do? The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market. Who owns the PBoC? The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts. What are the main policy tools used by the PBoC? Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi. Are private banks allowed in China? Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.

The GBP/USD pair loses ground to near 1.3555 during the early Asian session on Monday, pressured by a firmer US Dollar (USD). Markets turn cautious ahead of a meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy later on Monday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}GBP/USD softens to around 1.3555 in Monday’s early Asian session. A cautious mood ahead of the US-Ukraine meeting underpins the US Dollar. UK economy grows by better-than-expected 0.3% QoQ in the second quarter.The GBP/USD pair loses ground to near 1.3555 during the early Asian session on Monday, pressured by a firmer US Dollar (USD). Markets turn cautious ahead of a meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy later on Monday. The UK July Consumer Price Index (CPI) inflation report will be released on Tuesday. The Greenback strengthens as caution prevails before Trump’s talks with Zelenskiy. Traders await the Trump-Zelenskiy meeting in Washington on Monday, as it might offer some hints about a ceasefire deal or new sanctions on Russia or buyers of its crude. Any signs of persistent geopolitical tensions might boost the safe-haven demand and create a headwind for the major pair in the near term.  Nonetheless, the upbeat UK Gross Domestic Product (GDP) report for the second quarter (Q2) could provide some support to the Cable. The UK economy slowed less than expected in Q2 despite the shock of US trade tariffs and a weaker jobs market, rising 0.3% QoQ versus a 0.7% growth in Q1. This figure came in stronger than the expectation of a 0.1% expansion in the reported period.The attention will shift to the UK CPI inflation data on Tuesday for a fresh impetus. The core CPI is expected to show an increase of 3.7% YoY in July. If the data shows a hotter-than-expected outcome, this could reduce market expectations for the Bank of England (BoE) to cut rates in September, which might lift the GBP against the USD. Markets are now fully pricing another reduction only in February 2026, according to LSEG data.   Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

Silver (XAG/USD) attracts some dip-buyers near the $37.80 region during the Asian session on Monday. The white metal climbs back above the $38.00 mark, hitting a fresh daily peak in the last hour.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Silver reverses an Asian session dip to the 200-SMA pivotal support on H4.The mixed technical setup warrants caution before placing directional bets.A move beyond $38.20-$38.25 should pave the way for additional gains.Silver (XAG/USD) attracts some dip-buyers near the $37.80 region during the Asian session on Monday. The white metal climbs back above the $38.00 mark, hitting a fresh daily peak in the last hour.From a technical perspective, the XAG/USD once again finds decent support near the 200-period Simple Moving Average (SMA). This level should act as a key pivotal point. A convincing break below it will be seen as a key trigger for bearish traders and could pave the way for deeper losses.The subsequent fall could drag the XAG/USD to the next relevant support near mid-$37.00s en route to the $37.00 neighborhood. Some follow-through selling would expose the monthly swing low, around the $36.20 region, before the white metal weakens further below the $36.00 mark.Meanwhile, oscillators on the daily chart are still holding with a slight positive move. This, in turn, warrants some caution before placing aggressive bearish bets around the XAG/USD. That said, any further move up is likely to confront a stiff barrier near the $38.20-$38.25 region.A sustained strength beyond the latter, however, might shift the bias in favor of bulls and lift the XAG/USD to the $38.50-$38.55 intermediate hurdle en route to the multi-week top, around the $38.75 zone. The momentum could extend further towards reclaiming the $39.00 mark.Silver 4-hour chart Silver FAQs Why do people invest in Silver? Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices. How does industrial demand affect Silver prices? Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices. How do Silver prices react to Gold’s moves? Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

The Gold price (XAU/USD) attracts some sellers to around $3,330 during the early Asian session on Monday. The precious metal edges lower after unexpectedly strong US Producer Price Index (PPI) data.

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The precious metal edges lower after unexpectedly strong US Producer Price Index (PPI) data. Investors will closely monitor a meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy later on Monday for further developments.Hotter-than-expected PPI inflation data released on Thursday prompted traders to trim wagers on rate cuts by the Federal Reserve (Fed) in September, which creates a headwind for the yellow metal. The US Producer Price Index (PPI) rose 3.3% YoY in July, versus the 2.4% increase prior. This reading came in stronger than the expectations of 2.5% by a wide margin.Furthermore, data released by the US Census Bureau on Friday showed that the US Retail Sales increased by 0.5%  MoM in July, versus a rise of 0.9% seen in June (revised from 0.6%). This reading came in line with the market consensus.  However, the cautious mood in the market might boost the safe-haven flows and help limit gold’s losses. Bloomberg reported on Sunday that US special envoy Steve Witkoff said that Trump and Russian President Vladimir Putin agreed on Ukraine security pledges. Witkoff further stated that the deal did not enable Ukraine to achieve its goal of NATO membership, as Russia objected to NATO admission. Gold traders will take more cues from the Trump and Zelenskiy meeting later in the day as details from the US-Russia talks remain unclear.   Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

The AUD/USD pair gains ground around 0.6510 during the early Asian session on Monday. The US Dollar (USD) remains weak against the Australian Dollar (AUD) as US economic data keep the case for a September Federal Reserve (Fed) interest rate cut intact.

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The US Dollar (USD) remains weak against the Australian Dollar (AUD) as US economic data keep the case for a September Federal Reserve (Fed) interest rate cut intact. Investors will keep an eye on the preliminary reading of the US S&P Global Purchasing Managers Index (PMI) data, which is due later on Thursday. US Consumer Sentiment lost momentum in early August, declining to 58.6 in August from 61.7 in July, according to preliminary data from the University of Michigan (UoM). This figure came in worse than the expectation of 62.0 and signaled a poor backdrop in public confidence, which exerted some selling pressure on the Greenback. Meanwhile, the US Retail Sales increased by 0.5% on a monthly basis in July, compared to a rise of 0.9% seen in June, the US Census Bureau reported on Friday. This reading came in line with the market consensus. Money markets are now pricing in nearly a 93% odds of a 25 basis points (bps) Fed rate cut in September, according to the CME FedWatch tool.On the other hand, softer Chinese economic reports released on Friday might drag the China-proxy Aussie lower. The National Bureau of Statistics (NBS) showed on Friday that China’s Retail Sales increased 3.7% YoY in July, compared to 4.6% expected and 4.8% in June. Meanwhile, Industrial Production rose 5.7% YoY in July versus 6.8% prior. This figure came in worse than the estimation of 2.7%. It’s worth noting that China is a major trading partner of Australia and weak Chinese data tends to have a negative impact on the AUD value. Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

United Kingdom Rightmove House Price Index (YoY) rose from previous 0.1% to 0.3% in August

United Kingdom Rightmove House Price Index (MoM): -1.3% (August) vs previous -1.2%

New Zealand Business NZ PSI climbed from previous 47.3 to 48.9 in July

US special envoy Steve Witkoff on Sunday said that US President Donald Trump and Russian President Vladimir Putin agreed at their summit in Alaska that the United States (US) would be able to offer security guarantees to Ukraine, Bloomberg reported on Sunday.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}} US special envoy Steve Witkoff on Sunday said that US President Donald Trump and Russian President Vladimir Putin agreed at their summit in Alaska that the United States (US) would be able to offer security guarantees to Ukraine, Bloomberg reported on Sunday.According to Witkoff, the deal did not enable Ukraine to achieve its goal of NATO membership, as Putin objected to Ukraine's admission to NATO. “We were able to win the following concession: That the United States could offer Article Five-like protection, which is one of the real reasons why Ukraine wants to be in NATO,” Witkoff said Sunday. Market reactionAt the time of writing, the Gold price (XAU/USD) is trading 0.04% lower on the day to trade at $3,335.  Risk sentiment FAQs What do the terms"risk-on" and "risk-off" mean when referring to sentiment in financial markets? In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest. What are the key assets to track to understand risk sentiment dynamics? Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit. Which currencies strengthen when sentiment is "risk-on"? The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity. Which currencies strengthen when sentiment is "risk-off"? The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
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