USD/CHF rebounds on Monday as the US Dollar (USD) recovers from its early losses. At the time of writing, the pair trades around 0.8112 after touching an intraday low of 0.8072, its lowest level in over a week.

EUR/USD trims earlier gains on Monday as the US Dollar (USD) shows signs of stabilization after opening the week under selling pressure. At the time of writing, the pair trades around 1.1580 after touching an intraday high of 1.1614, its highest level since June 17.

EUR/GBP is holding a narrow band around the mid-0.8500s with little conviction in either direction. At the time of writing, the cross is close to flat on the day.

The Pound Sterling registers modest gains of 0.14% on Monday as investors digest softer-than-expected US inflation data and brace for the release of crucial UK jobs and inflation data. The GBP/USD trades at 1.3552 after bouncing off daily lows of 1.3524.

USD/JPY rebounds on Monday after coming under selling pressure earlier in the day, as the Japanese Yen (JPY) struggles to gain traction despite a weaker US Dollar (USD). At the time of writing, the pair trades around 159.25, recovering from an intraday low of 158.85.

AUD/USD extended its recovery on Monday, pushing to fresh 10-week highs and holding near the 0.7100 zone. At the time of writing, the pair is 0.40% up for the day, driven almost entirely by a broadly weak US Dollar (USD) rather than anything positive out of Australia.

Scotiabank strategists Shaun Osborne and Eric Theoret note British Pound (GBP) is underperforming core European peers but has still reached a three‑month high against the US Dollar (USD).

Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is firming as Eurozone economic resilience and narrowing yield spreads versus the US support EUR/USD.

BNY’s Geoff Yu highlights that weak Japanese Gross Domestic Product (GDP) data and rising JGB yields are undermining confidence in the Bank of Japan’s ability to sustain a stronger Yen.

USD/CAD falls to its lowest level since June 3 on Monday as the US Dollar (USD) stays under pressure, while hotter-than-expected Canadian inflation data provide additional support to the Canadian Dollar (CAD). At the time of writing, the pair trades around 1.3852.

EUR/CAD edges higher on Monday, trading around 1.6070 at the time of writing, up 0.11% on the day. The pair maintains a positive bias despite a stronger-than-expected acceleration in Canadian inflation, which provides some support to the Canadian Dollar (CAD).

NZD/USD extends its advance on Monday and trades around 0.5915 at the time of writing, up 0.37% on the day.

GBP/USD edges higher on Monday as fading expectations of an imminent Federal Reserve (Fed) rate hike drag the US Dollar (USD) lower and lift the British Pound (GBP) to its highest level since May 12.

The Euro (EUR) crawls higher for the third consecutive day on Monday, against a weak Yen (JPY), weighed down by downbeat Japanese Gross Domestic Product (GDP) figures.

USD/CAD trades around 1.3860 on Monday at the time of writing, down 0.11% on the day. The pair extends its decline as the US Dollar (USD) remains under pressure against the Canadian Dollar (CAD), with investors scaling back expectations of further monetary tightening by the Federal Reserve (Fed).

The Japanese Yen holds marginal gains against the US Dollar (USD) on Wednesday, although the USD/JPY pair has returned to levels above 159.00 during the European session, after hitting daily lows around 158.85.

TD Securities expects the UK labour market to remain soft but stable in June, with employment rising 100k on a three‑month basis and unemployment edging down to 4.7%. Headline average weekly earnings are forecast to slow to 4.0%, while ex‑bonus pay holds at 3.4%.

Commerzbank’s Tatha Ghose notes that the Central Bank of the Republic of Türkiye's (CBRT) survey shows market participants revising inflation forecasts higher and expecting only gradual rate cuts from current effective levels.

MUFG’s Derek Halpenny and Lee Hardman report that Japanese government bond yields are rising despite weaker-than-expected GDP, as markets focus on prospects for further Bank of Japan rate hikes.

The EUR/USD pair builds on last week's bounce from the vicinity of the 1.1500 psychological mark and gains strong follow-through positive traction on Monday.

The British Pound (GBP) extends gains for the second consecutive day on Monday, as investors cut back US Dollar (USD) long positions, amid a dovish repricing of the Federal Reserve’s (Fed) monetary policy.

United Overseas Bank’s (UOB) Quek Ser Leang observes that USD/JPY price action remains choppy, with the pair closing around 159.30 after a dip to 158.58. Intraday direction is unclear, with trading expected between 158.80 and 159.60.

Brown Brothers Harriman’s (BBH) Elias Haddad argues that upcoming Australian wage and labour data are unlikely to shift Reserve Bank of Australia pricing, with futures only partly discounting one final hike.

Commerzbank’s Volkmar Baur argues that softer New Zealand inflation data make a September rate hike by the Reserve Bank of New Zealand (RBNZ) unlikely after July’s move.

The New Zealand Dollar (NZD) keeps crawling higher against a weaker US Dollar (USD) with price action reaching the 0.5920 area for the first time since early June. Kiwi Dollar bulls did not flinch after a set of downbeat data from China on Monday and kept buying the pair, with the US Dollar depreci

The AUD/USD pair attracts strong follow-through buying at the start of a new week and surges past the 0.7100 mark, hitting a fresh high since June 5 as sustained US Dollar (USD) selling offsets China's weak macro data dump.

United Overseas Bank’s (UOB) Quek Ser Leang notes GBP/USD invalidated a recent neutral call by breaking above 1.3555 and closing higher near 1.3532. Intraday, the British Pound (GBP) may extend toward 1.3570, with 1.3600 as firm resistance.

OCBC’s Sim Moh Siong and Christopher Wong highlight that September Bank of Japan (BoJ) hike odds have risen sharply, but the Japanese Yen (JPY) has reacted only modestly. They argue a sustained Yen recovery likely needs clearer commitment to faster policy normalisation.

The Euro (EUR) holds minor gains against the British Pound (GBP) for the third consecutive day on Monday, favoured by European Central Bank (ECB) - Bank of England (BoE) monetary policy divergence.

Here is what you need to know on Monday, August 17: