The Euro (EUR) lost momentum in a negative start to the week, setting aside Friday’s bullish attempt. That said, EUR/USD came under fresh downside pressure and slipped back to the vicinity of 1.1650 on Monday. Despite the knee-jerk, the pair kept navigating its upper end of the monthly range.
A firmer US Dollar (USD) puts pressure on Gold prices at the beginning of the week. The XAU/USD pair approaches $3,330 early in the American session, down from an intraday peak of $3,358.45.
The Australian Dollar (AUD) lost some of its shine in a disheartening start to the new trading week, giving back part of Friday’s rebound. In fact, AUD/USD returned to the sub-0.6500 region in response to the decent bounce in the US Dollar (USD), helped by geopolitics and higher US yields.
The EUR/USD pair trades with a softer tone on Monday, easing from an early peak of 1.1716. The US Dollar (USD) edges modestly higher against most major rivals in the mid-European session, but overall, financial markets are in wait-and-see mode after last week’s events.
Will the leaders of Russia and Ukraine meet? The world hopes that the flurry of summits leads to the end of the war – and to economic opportunities. Markets will also be watching the Federal Reserve (Fed), especially at the bank’s Jackson Hole Symposium at the end of the week.
After rising more than 0.7% in the previous week, GBP/USD struggles to gain traction on Monday and fluctuates in a tight channel at around 1.3550.