USD/CAD has gained 0.4% to 1.3875 as the US Dollar strengthens on reports of a potential 90-day extension to the US-China trade truce. The positive trade developments have boosted risk sentiment and supported the greenback against the Canadian dollar, despite oil prices remaining steady near $78/barrel. Market participants are interpreting the trade extension as a sign of improving bilateral relations, reducing immediate tariff concerns that had weighed on global growth prospects. The pair has broken above its 50-day moving average at 1.3850, with technical momentum turning bullish. Immediate resistance lies at 1.3900, while support has formed at 1.3830. The Canadian dollar faces additional pressure from expectations of diverging monetary policy, with the Bank of Canada likely to maintain its dovish stance while the Fed delays anticipated rate cuts. A sustained move above 1.3900 could target the psychological 1.4000 level.
USDCAD
Sentiment:
Positive
Source: Marketaux
The US Dollar has remained relatively stable following July CPI data that came in line with expectations, supporting the view for continued Federal Reserve easing. Core PCE inflation is projected to increase by 0.23% based on the CPI figures, keeping annual inflation modestly above the Fed's 2% target. Market participants await tomorrow's PPI data for additional confirmation of the inflation trajectory. The measured inflation print hasn't significantly altered market expectations for Fed policy, with a September rate cut still priced at 65% probability. EUR/USD trades near 1.0950, showing limited reaction to the data, while USD/JPY holds steady at 149.50. The lack of surprise in the inflation numbers has maintained the current market narrative of gradual Fed easing. Traders are now focusing on upcoming employment data and Fed communications for clearer directional cues on dollar pairs.
EURUSD
USDJPY
DXY
Sentiment:
Neutral
Source: Finnhub
AUD/USD has declined 0.5% to 0.6475 following the Reserve Bank of Australia's 25 basis point rate cut and signals of an extended easing cycle. The RBA's decision reflects growing concerns about slowing inflation and weakening economic growth in Australia, with GDP expanding at just 1.2% annually. Market participants now expect at least two more rate cuts in the coming quarters as the central bank attempts to support the economy. The Australian dollar faces additional headwinds from declining iron ore prices, which have fallen 8% this month amid Chinese demand concerns. Technical analysis shows AUD/USD breaking below key support at 0.6500, with the next target at 0.6450. The 200-day moving average at 0.6520 now acts as resistance. Further downside pressure could emerge if upcoming Australian employment data disappoints, potentially pushing the pair toward the 0.6400 psychological level.
AUDUSD
Sentiment:
Very Negative
Source: Marketaux
USD/CHF is trading near critical technical levels as traders await the upcoming US CPI release, which could determine whether the dollar extends its recent decline or stages a recovery. The pair has been under pressure from broad dollar weakness, with the US Dollar Index showing signs of fatigue near multi-month highs. Market participants are closely monitoring inflation data, as any deviation from expectations could significantly impact Federal Reserve rate expectations and dollar sentiment. Technical analysis shows USD/CHF facing immediate resistance at the 0.8650 level, while support has formed near 0.8580. A stronger-than-expected CPI reading could propel the pair above resistance toward 0.8700, while disappointing inflation figures might accelerate the decline toward the 0.8500 psychological support. Swiss franc strength has been supported by its traditional safe-haven appeal amid global economic uncertainties.
USDCHF
Sentiment:
Neutral
Source: Marketaux
AUD/USD declined 0.5% (approximately 35 pips) to 0.6520 following the Reserve Bank of Australia's decision to cut interest rates by 25 basis points to 3.60%, as widely anticipated by markets. The RBA's move aims to support economic growth amid softening inflation pressures and global economic headwinds. While the rate cut provided a boost to Australian equities, it weighed heavily on the Australian dollar as yield differentials narrowed against major currencies. The central bank maintained a cautious tone, suggesting further easing may be data-dependent. Technical indicators show AUD/USD testing support at 0.6500, with the next major level at 0.6470. Resistance is seen at 0.6550 and 0.6580. Traders are now focusing on upcoming Australian employment data and Chinese economic indicators, which could influence the Aussie's near-term direction given Australia's strong trade ties with China.
AUDUSD
Sentiment:
Negative
Source: Marketaux
Both USD/CHF and EUR/CHF are displaying bullish technical setups, but upcoming inflation data poses a significant hurdle for continuation patterns. USD/CHF has formed an ascending triangle pattern with resistance at 0.8680, while EUR/CHF shows a similar bullish flag formation near 0.9450. The Swiss franc has been under pressure from risk-on sentiment in global markets, supporting both pairs' upward trajectories. However, traders remain cautious ahead of key inflation releases from the US and Eurozone, which could disrupt current technical patterns. For USD/CHF, a break above 0.8680 could target 0.8750, while EUR/CHF eyes 0.9500 as the next resistance level. Support levels stand at 0.8620 for USD/CHF and 0.9400 for EUR/CHF. Market positioning suggests traders are moderately bullish but maintaining tight stops ahead of the inflation data releases.
USDCHF
EURCHF
EURUSD
USDJPY
Sentiment:
Positive
Source: Marketaux
The Reserve Bank of Australia delivered a 25 basis point rate cut in its August monetary policy decision, lowering the cash rate to 3.60% following July's unexpected pause. The decision aligned with market expectations after the central bank surprised traders by holding rates steady in the previous meeting. The RBA cited moderating inflation pressures and concerns about global economic growth as key factors behind the easing decision. Governor's statement highlighted that while the labor market remains relatively tight, forward indicators suggest some softening ahead. The rate cut immediately impacted currency markets, with AUD/USD dropping 40 pips to test the 0.6500 support level. Market pricing now suggests a 60% probability of another 25bp cut by year-end, depending on incoming economic data. The decision reinforces the RBA's data-dependent approach while acknowledging the need to support economic growth amid external headwinds.
AUDUSD
Sentiment:
Negative
Source: Marketaux
WTI crude oil futures closed 8 cents higher at $63.96, with intraday trading ranging between $63.02 and $64.44 as the market continues its recent consolidation phase. The modest gain reflects ongoing balance between supply concerns and demand uncertainties in global energy markets. Technical analysis shows price action converging with the declining 100-hour moving average at $64.49, creating a potential inflection point for directional moves. The multi-day consolidation pattern suggests traders are awaiting fresh catalysts, with weekly inventory data and OPEC+ compliance monitoring in focus. For forex markets, stable oil prices provide neutral backdrop for commodity currencies like CAD and NOK. A break above the 100-hour MA could target $65.50 resistance, while failure might see support tested at $62.50. Energy traders remain cautious amid mixed signals from Chinese demand recovery and ongoing Middle East supply dynamics.
Sentiment:
Neutral
Source: Finnhub
European equity markets ended Monday's session with mixed results, reflecting diverging economic outlooks across the region. Germany's DAX fell 0.4% to 15,420, while France's CAC40 dropped 0.3% to 7,280, and Italy's FTSE MIB declined 0.5% to 27,850. The weakness in major European indices weighed on EUR/USD, which retreated 0.2% to 1.0830 as risk sentiment deteriorated. German manufacturing data disappointed with PMI remaining in contraction territory at 43.2, raising concerns about Europe's largest economy. The euro faced additional pressure from ECB officials' dovish comments suggesting potential rate cuts if inflation continues moderating. Technical analysis shows EUR/USD testing support at 1.0820, with a break below potentially accelerating losses toward 1.0800. Currency traders are closely monitoring European economic indicators for signs of further weakness that could prompt more aggressive ECB easing.
EURUSD
Sentiment:
Negative
Source: Finnhub
The US dollar index fell 0.6% to 101.50, marking its lowest level in a week as weak economic data reinforced expectations for aggressive Federal Reserve rate cuts. Manufacturing PMI contracted to 47.8, while job openings dropped to 8.1 million, significantly below the forecasted 8.5 million. Markets are now pricing in a 65% probability of a 50 basis point cut in September, up from 40% last week. EUR/USD benefited from dollar weakness, rising 0.4% to 1.0875, while GBP/USD advanced 0.5% to 1.2850. The dollar's broad-based decline also lifted commodity currencies, with AUD/USD gaining 0.7% to 0.6680. Technical indicators suggest the dollar index could test the 101.00 support level if economic data continues to disappoint. Traders should monitor Friday's Non-Farm Payrolls report, which could cement rate cut expectations and drive further dollar weakness.
EURUSD
GBPUSD
AUDUSD
Sentiment:
Negative
Source: Marketaux
The dollar index rose 0.38% to 102.20, reaching a one-week high as geopolitical tensions surrounding Ukraine dampened risk appetite and boosted safe-haven demand. EUR/USD dropped 0.3% to 1.0810 after Ukrainian President Zelenskyy rejected territorial concessions to Russia, diminishing hopes for near-term conflict resolution. The euro faced additional pressure from concerns about European energy security and potential economic impacts from prolonged tensions. Flight-to-quality flows benefited the dollar and Japanese yen, with USD/JPY holding steady at 149.50. Technical analysis shows EUR/USD breaking below the 1.0830 support level, opening the path toward 1.0800. The dollar's strength was broad-based, with the DXY index breaking above its 20-day moving average at 102.10. Traders remain cautious ahead of any developments in Eastern Europe that could further impact currency markets and risk sentiment.
EURUSD
USDJPY
Sentiment:
Positive
Source: Marketaux
USDCAD surged to test key resistance levels during Monday's session, breaking above the 200-hour moving average at 1.37817 and briefly piercing the 100-day moving average at 1.37876. Despite these technically significant breaks that should have triggered further upside momentum, the pair failed to sustain gains and reversed sharply lower. The rejection at these critical resistance levels suggests strong selling pressure emerged near the 1.3790 area, potentially from profit-taking or fresh short positions. This false breakout pattern indicates underlying weakness in the US dollar against the Canadian dollar, with bears defending the 100-day MA successfully. Technical traders will now watch for a potential retest of support at the 200-hour MA, while a break below could accelerate losses toward 1.3750. The failed breakout serves as a cautionary signal for bulls, suggesting additional consolidation or downside pressure may develop before any sustainable move higher.
USDCAD
Sentiment:
Negative
Source: Finnhub
S&P 500 futures are trading at 6,425, maintaining a narrow 21-point range between 6,408.5 and 6,429.5, with the 50-week high at 6,468.6 within reach. The TradeCompass technical indicator identifies 6,422 as the critical bullish threshold, which has now been surpassed, signaling positive momentum for risk assets. This bullish equity positioning typically correlates with USD weakness as traders shift toward higher-yielding assets and risk-on currencies. The technical breakout suggests continued upward pressure on stocks, which could weigh on the dollar's safe-haven appeal. Major USD pairs including EUR/USD, GBP/USD, and AUD/USD may benefit from this risk-on sentiment shift. Traders should monitor whether the S&P 500 can sustain levels above 6,422 and potentially challenge the 6,468.6 resistance, as failure to hold could reverse the dollar's bearish outlook and trigger defensive positioning back into the greenback.
EURUSD
GBPUSD
AUDUSD
USDJPY
Sentiment:
Negative
Source: Finnhub
EUR/USD is trading in a tight consolidation pattern just below the psychologically important 1.1700 level, reflecting a period of indecision among market participants. The pair appears to be digesting recent gains while traders await fresh catalysts for directional movement. Current price action suggests the euro is maintaining its strength against the US dollar, though momentum has stalled near this key resistance area. The 1.1700 level has proven to be a significant barrier, with multiple attempts to break above failing to generate sustained follow-through buying. Support is forming around 1.1650, creating a narrow 50-pip trading range. This consolidation phase may continue until upcoming economic data releases provide clearer direction. Traders should monitor for a decisive break above 1.1700, which could open the path toward 1.1750-1.1800, while failure to hold current levels might see the pair retreat to test support at 1.1620.
EURUSD
Sentiment:
Neutral
Source: Marketaux
The US dollar's near-term trajectory will be primarily driven by incoming economic data rather than geopolitical developments, despite ongoing global tensions. Market focus has shifted decisively toward fundamental indicators that could influence Federal Reserve policy decisions. The Dollar Index (DXY) remains sensitive to US economic releases, with traders closely monitoring inflation, employment, and growth metrics. Current geopolitical risks, while present, are taking a backseat to data-driven trading strategies. EUR/USD and GBP/USD movements will likely reflect dollar strength or weakness based on comparative economic performance. Additionally, commodity currencies may see indirect impacts through oil price fluctuations, as WTI crude futures respond to both supply dynamics and dollar movements. This data-centric approach suggests increased volatility around key economic releases, with technical levels serving as secondary considerations. Traders should prepare for potential sharp moves in major pairs coinciding with high-impact data announcements.
EURUSD
EURGBP
DXY
Sentiment:
Positive
Source: Marketaux
USD/JPY remains under pressure as markets position ahead of crucial Japanese inflation data, with Fed rate cut expectations dominating sentiment. The pair has been consolidating near recent lows as traders anticipate Japan's Consumer Price Index release, which could influence Bank of Japan policy decisions. Market pricing now reflects increased probability of Federal Reserve rate cuts in 2025, weighing on dollar strength across major pairs. The S&P 500 futures and VIX volatility index movements suggest risk sentiment remains fragile, potentially supporting safe-haven yen flows. Technical indicators point to key support at the 145.00 psychological level, while resistance emerges near 147.50. A stronger-than-expected Japanese CPI reading could accelerate yen appreciation, particularly if it reinforces expectations for BOJ policy normalization. Conversely, disappointing inflation data might provide temporary relief for USD/JPY bulls, though broader dollar weakness from Fed cut speculation continues to cap upside potential.
USDJPY
Sentiment:
Negative
Source: Marketaux
USD faces pivotal week with July CPI release expected to show 0.2% monthly increase, as markets price in September Fed rate cut amid recent weak economic data. The dollar index has softened 1.2% over the past week as traders position for potential policy shift. Fed officials have turned increasingly dovish following disappointing employment and manufacturing indicators, with futures markets now pricing 85% probability of 25bp cut in September. Stagflation concerns are rising as growth slows while inflation remains sticky. A hotter-than-expected CPI reading could trigger sharp dollar rally and unwind rate cut bets, potentially pushing EUR/USD below 1.0900 support and USD/JPY toward 147.00 resistance. Conversely, softer inflation would likely accelerate dollar selling, with EUR/USD targeting 1.1000 psychological level. Traders should monitor closely as unexpected inflation surprises could cause significant volatility across all major USD pairs.
EURUSD
USDJPY
GBPUSD
USDCHF
AUDUSD
USDCAD
NZDUSD
Sentiment:
Negative
Source: Finnhub
USD index has retreated 0.2% to 102.45 as markets anticipate Tuesday's US CPI report for July, with Deutsche Bank projecting a sharp deceleration to 0.1% month-over-month from June's 0.2%. The dollar's weakness stems from expectations of cooling inflation potentially supporting Federal Reserve rate cuts later this year. Adding to USD uncertainty, the August 12 deadline for US-China tariff pause extension looms large, with trade tensions potentially impacting risk sentiment and dollar demand as a safe haven. Core CPI remains the key focus for traders, expected to moderate to 0.2% from 0.3% previously. Technical indicators show USD index testing support at 102.30, with resistance at 103.00. A softer-than-expected CPI reading could accelerate dollar selling across major pairs, while any surprise uptick might provide temporary USD relief. The confluence of inflation data and trade policy decisions creates a pivotal week for dollar positioning.
USDCNY
EURUSD
GBPUSD
USDJPY
Sentiment:
Negative
Source: Finnhub
Major forex pairs are experiencing heightened volatility during Monday's Asian session opening as liquidity remains extremely thin. Market participants are advised to exercise caution as price swings could be exaggerated until more Asian financial centers come online. The typical Monday morning conditions see wider spreads across all major pairs including EUR/USD, GBP/USD, and USD/JPY, with indicative pricing showing potential gaps from Friday's close. Traders should expect erratic price movements and potential false breakouts during these early hours. The lack of liquidity often results in stop-loss hunting and unexpected spikes in either direction. Normal market conditions are expected to resume as Tokyo fully opens and liquidity improves throughout the Asian session. Technical levels established during thin conditions should be viewed with skepticism until confirmed by higher volume trading.
EURUSD
GBPUSD
USDJPY
Sentiment:
Neutral
Source: Marketaux
The US dollar index declined 0.22% as reports emerged that President Trump's team is broadening their search for potential Federal Reserve Chair candidates beyond current Chair Jerome Powell. According to the Wall Street Journal, new contenders have been added to the list, including former St. Louis Fed officials, signaling potential shifts in monetary policy leadership. This development has introduced uncertainty about future Fed policy direction, weighing on dollar sentiment. Market participants are closely monitoring these developments as changes in Fed leadership could significantly impact interest rate trajectories and monetary policy stance. The expanded search suggests Trump may be seeking a more accommodative approach to monetary policy, which could pressure the dollar further. Technical indicators show the dollar index testing key support levels, with traders positioning for potential policy shifts ahead.
DXY
Sentiment:
Negative
Source: Finnhub
