The day was started with the accusations that Fed Gov. Lisa Cook was accused of mortgage fraud. More specifically, she was accused of purchasing two properties within a short period of time, and saying that both properties would be her primary residence.
AUD
Source: Finnhub
WTI crude oil is trading at $62.54 ahead of the weekly EIA inventory report, with markets expecting a drawdown of 1.759 million barrels. The energy complex shows mixed signals as gasoline inventories are forecast to decline by 0.915 million barrels, while distillates are expected to build by 0.928 million barrels. Yesterday's API data release provided initial guidance for today's official figures, though specific numbers weren't disclosed. Cushing storage hub recorded a minimal build of 0.045 million barrels last week, suggesting relatively balanced supply-demand dynamics. The inventory data could influence commodity currencies, particularly CAD and NOK, as oil price movements often correlate with these petroleum-export dependent currencies. Traders are watching for any significant deviation from expectations that could trigger volatility in both oil markets and related forex pairs.
USDCAD
USDNOK
Sentiment:
Neutral
Source: Finnhub
EUR/USD bullish momentum is expected to push the pair above 1.20 through 2026, according to the latest monthly FX update analysis. While specific current levels weren't mentioned, the forecast suggests significant upside potential from current trading ranges. The projection implies approximately 10-15% appreciation from typical 2024 levels, driven by expectations of Federal Reserve policy shifts and potential dollar weakness. Long-term structural factors supporting euro strength include improving Eurozone economic fundamentals and reduced energy crisis concerns. The analysis points to a multi-year trend reversal favoring the euro, though near-term volatility remains possible. Technical projections suggest initial resistance at psychological levels around 1.15 and 1.18 before challenging the 1.20 target. Traders should consider the extended timeframe of this forecast when positioning, as shorter-term corrections within the broader uptrend are likely.
EURUSD
Sentiment:
Very Positive
Source: Marketaux
USD/CAD has strengthened following softer-than-expected Canadian inflation data, increasing market expectations for Bank of Canada rate cuts. The weak CPI figures reinforce the divergence between Canadian and US monetary policy outlooks, with the BoC likely to maintain a more dovish stance compared to the Federal Reserve. While specific inflation numbers weren't provided, the data was sufficiently weak to shift market pricing for future BoC decisions. The Canadian dollar's weakness reflects growing concerns about economic slowdown and the central bank's potential response. Technical momentum favors further USD/CAD upside, with traders eyeing key resistance levels as rate differential expectations widen. The pair's movement also reflects broader commodity currency weakness, as softer economic data typically correlates with reduced demand for resource exports. Near-term direction will depend on upcoming Canadian economic releases and any shifts in Federal Reserve policy expectations.
USDCAD
Sentiment:
Positive
Source: Marketaux
Global forex markets are experiencing risk-off sentiment as traders position defensively ahead of Wednesday's FOMC minutes release. The anxiety surrounding Federal Reserve monetary policy has strengthened safe-haven currencies, particularly the US dollar and Japanese yen, against risk-sensitive pairs. Market participants are scrutinizing Fed communications for any hints about the pace and timing of future rate decisions, especially given recent mixed economic signals. The cautious mood has pressured commodity currencies and emerging market forex pairs, with traders reducing exposure before the key event risk. Technical indicators suggest increased volatility expectations, with implied volatility rising across major currency pairs. The FOMC minutes could provide crucial insights into the central bank's assessment of inflation persistence and labor market conditions. Traders should prepare for potential sharp movements post-release, particularly if the minutes reveal unexpected hawkish or dovish tilts in committee discussions.
USDJPY
AUDUSD
NZDUSD
Sentiment:
Neutral
Source: Marketaux
US mortgage applications fell 1.4% for the week ending August 15, reversing the previous week's 10.9% gain, according to MBA data. The market index dropped to 277.1 from 281.1, while the 30-year mortgage rate edged higher to 6.68% from 6.67%. Purchase applications remained virtually flat at 160.3 versus 160.2 previously, indicating stable homebuying demand despite elevated rates. Refinancing activity declined more sharply, with the refinance index falling to 926.1 from 956.2. The data had minimal impact on USD pairs, as mortgage applications rarely drive significant forex movements. However, the figures contribute to the broader US economic picture, suggesting continued housing market pressure from high borrowing costs. Currency traders remain focused on more impactful releases including inflation data and Federal Reserve policy signals rather than housing market indicators.
EURUSD
USDJPY
GBPUSD
Sentiment:
Neutral
Source: Finnhub
It's been that kind of sluggish week in European trading over the past few days
NZDUSD
Sentiment:
Negative
Source: Marketaux
Euro-Area economy proved resilient earlier this year.Slowdown in Euro-Area growth already evident in Q2.Growth is expected to slow in the third quarter.These are just token remarks from the ECB President. There's nothing new here. The market is pricing just 11 bps of easing by year-end, which has less than 50% chance of happening.
EUR
Sentiment:
Neutral
Source: Finnhub
Market Analysis by covering: British Pound US Dollar, US Dollar Index Futures. Read 's Market Analysis on Investing.com
GBPUSD
Sentiment:
Positive
Source: Marketaux
NZD/USD tumbled sharply following the Reserve Bank of New Zealand's dovish policy shift, with the pair dropping over 1.2% to test support near 0.5920. The RBNZ's August policy report revealed a more pessimistic economic outlook, prompting Deputy Governor Hawkesby to signal additional rate cuts ahead, though maintaining a data-dependent approach. The dovish stance triggered broad NZD weakness, with AUD/NZD surging to test higher timeframe resistance levels around 1.1050. Market attention now shifts to UK CPI data, with analysts expecting inflation to remain sticky, potentially influencing GBP pairs' volatility. Technical indicators suggest NZD/USD faces immediate resistance at 0.5980, while a break below 0.5900 could accelerate losses toward 0.5850. The RBNZ's pivot represents a significant shift in monetary policy stance, suggesting prolonged NZD weakness as the central bank prioritizes economic growth over inflation concerns.
NZDUSD
AUDNZD
GBPUSD
Sentiment:
Very Negative
Source: Finnhub
Market Analysis by covering: New Zealand Dollar US Dollar, Australian Dollar New Zealand Dollar. Read 's Market Analysis on Investing.com
NZDUSD
Sentiment:
Neutral
Source: Marketaux
