Silver price (XAG/USD) depreciates after two days of gains, trading around $66.00 per troy ounce during the Asian hours on Tuesday. The price of non-yielding Silver has taken a hit recently as rising oil prices spark renewed inflation fears and heighten expectations for interest rate hikes.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 6.7900 compared to the previous day's fix of 6.7884 and 6.7497 Reuters estimate.

The Yen has surrendered close to a full percent through the session, with the pair up 0.93% and changing hands just above 159.00 after a 120-pip range running from the 158.00 handle to short of 159.50.

The Australian Dollar has traded a band of barely 20 pips through the session, holding above 0.7050 and easing 0.15% inside it. That is the tightest daily range the pair has produced in weeks, and it arrives at the end of a run of close to 200 pips from the late-June trough just above 0.6850.

Cable has spent the session inside a band of barely 45 pips straddling 1.3500, up 0.13% and holding its best ground since mid-July.

The Euro is poised to end Monday’s session with losses of about 0.13% against the Greenback, as recent news points to a delay in talks between the US and Iran, while, from a technical perspective, EUR/USD stalled at the 100-day Simple Moving Average (SMA) near 1.1568.

Citi Mexico released the Expectations Survey, in which the central bank polled 35 economists to gather their forecasts for monetary policy, the USD/MXN exchange Rate, inflation expectations, and economic growth.

The New Zealand Dollar (NZD) trades near 0.5900 against the US Dollar (USD) on Monday, giving back a little ground after a run toward multi-day highs last week.

The Mexican Peso loses some ground against the US Dollar on Monday as traders book profits after a worse-than-expected US jobs report last week and as eyes turn to the release of US inflation figures on Wednesday. The USD/MXN trades at 17.14, modestly up 0.05%.

USD/JPY advances 0.73% on Monday and trades around 158.95 at the time of writing.

The Canadian Dollar trades at its strongest against the US Dollar since the second week of June, with the rate holding just above 1.3900 into the afternoon.

The Pound Sterling advances during the North American session, up 0.20% as markets digest developments in the Middle East and await crucial inflation data in the United States (US). The GBP/USD trades at 1.3520 after bouncing off daily lows of 1.3483.

USD/CAD trades on the back foot on Monday even as the US Dollar (USD) regains some ground after weakening last week following softer-than-expected US Nonfarm Payrolls (NFP) data. Attention now turns to Wednesday’s US Consumer Price Index (CPI) report.

The Australian Dollar (AUD) trades near the 0.7060 level against the US Dollar (USD) on Monday, giving back a little ground after six straight weeks of gains.

EUR/USD treads water on Monday as the US Dollar (USD) steadies following its post-NFP weakness, while Oil prices rise amid uncertainty over the reopening of the Strait of Hormuz. At the time of writing, the pair trades around 1.1553, virtually unchanged on the day.

AUD/JPY rises 0.70% on Monday and trades around 112.25 at the time of writing. The pair benefits from broad weakness in the Japanese Yen (JPY), while the Australian Dollar (AUD) holds firm ahead of the Reserve Bank of Australia (RBA) monetary policy decision on Tuesday.

ING’s Francesco Pesole highlights that softer United States (US) data and a more dovish Fed outlook should, in theory, benefit the Japanese Yen (JPY) given its high rate sensitivity.

ING’s Francesco Pesole notes that with key Eurozone data behind and European Central Bank (ECB) communication subdued, EUR/USD is now driven mainly by the United States (US) side.

GBP/JPY edges higher on Monday as the Japanese Yen (JPY) underperforms across the G10 currency space, with structural headwinds limiting the impact of recent intervention. At the time of writing, the cross trades around 214.70, up 0.85% on the day.

Societe Generale’s Kenneth Broux notes AUD/USD has defended its 200-DMA and established a pattern of higher highs and higher lows, signalling a short-term uptrend.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that JPY is underperforming as firmer Oil prices support USD/JPY, while the Bank of Japan's (BoJ) latest meeting minutes did little to shift rate expectations.

Rabıobank's Senior FX Strategist Jane Foley discusses recent EUR/USD strength, noting it was mainly driven by a softer Dollar after weak United States (US) labour data reduced Federal Reserve (Fed) rate hike expectations.

TD Securities strategists expect the Reserve Bank of Australia (RBA) to leave the cash rate unchanged at 4.35%, noting that policy is already restrictive and that Australian activity, particularly housing, is slowing in response to earlier hikes.

BNY’s Wee Khoon Chong highlights that long-end JGB yields are rising on inflation and fiscal concerns, with markets pricing a roughly 50% chance of a 25bp BoJ hike in September and a full hike by year-end.

USD/CAD trades around 1.3940 on Monday at the time of writing, virtually unchanged on the day, after falling sharply on Friday.

The Australian Dollar (AUD) holds gains, in the mid-range of the 0.7000s against the US Dollar (USD) on Monday, with two-month highs of 0.7088 at hand. The Aussie is capitalising on the US Dollar’s weakness, as hopes of Federal Reserve (Fed) rate hikes wane.

The Euro (EUR) trades slightly lower at around 1.1550 against the US Dollar (USD) during the European trading session on Monday.

The Japanese Yen (JPY) is down against its major currency peers on Monday, trading 0.6% lower at around 158.80 against the US Dollar (USD) at the time of writing during the European trading session.

GBP/USD trades around 1.3495 on Monday at the time of writing, up a modest 0.04% on the day. However, the pair struggles to hold firmly above the psychological 1.3500 level after benefiting on Friday from a decline in the US Dollar (USD) triggered by disappointing United States (US) employment data.

Societe Generale strategists highlight that EUR/USD has squeezed above key resistance as Dollar weakness follows softer United States (US) employment data and reduced odds of a September Fed hike. The pair is seen slightly expensive versus nat gas but near fair value on 2-year spreads.