The Japanese Yen (JPY) holds moderate losses against the US Dollar (USD) on Monday, but remains close to seven-month highs, following a 4% rally in the previous two weeks.

The Indian Rupee is expected to extend its previous week’s plunge against the US Dollar (USD) after a long weekend on Tuesday. Indian financial markets across equity, commodity and currency remains closed on Monday due to Ganesh Chaturthi celebrations.

The Australian Dollar (AUD) resumed its downtrend against the US Dollar (USD) on Monday, weighed by the risk-off market mood, as Oil prices consolidate above $100, and rising bets that the Federal Reserve (Fed) will hike interest rates on Wednesday.

US Dollar (USD) appreciates for the fourth consecutive day against the Canadian Dollar (CAD) on Monday, as rising bets of a Federal Reserve (Fed) rate hike on Wednesday offset the traditional positive impact of higher Oil prices on the Canadian Dollar.

OCBC strategist Christopher Wong notes that JPY has extended gains, pushing USD/JPY near recent lows despite firmer Fed hike pricing and higher US front-end yields. Markets are positioned for a 25bp Bank of Japan (BoJ) hike, with speculative positioning now net long JPY.

The Swiss Franc (CHF) keeps trading lower against the US Dollar (USD) on Monday, as investors brace for a quarter-point interest rate hike by the Federal Reserve (Fed) later in the week, and Oil prices consolidate above $100.00.

EUR/JPY edges higher on Monday and trades around 178.40 at the time of writing, up 0.12% on the day. The pair remains supported despite growing expectations of further monetary tightening by the Bank of Japan (BoJ), while the European Central Bank (ECB) policy outlook remains uncertain.

ING’s Francesco Pesole highlights that EUR/USD has broken below 1.1600, with the bank maintaining a downside bias consistent with its constructive Dollar view.

The GBP/USD pair comes under heavy selling at the start of a new week and drops to the lower end of its monthly range, near the 1.3480 region during the first half of the European session.

Brown Brothers Harriman’s (BBH) Elias Haddad highlights that New Zealand Q2 Gross Domestic Product (GDP) is expected to slow sharply, with domestic demand weighed by higher fuel prices, uncertainty and falling house prices, though leading indicators suggest Q3 recovery.

UOB strategist Quek Ser Leang notes USD/CHF extended gains to 0.8170 and closed at 0.8161, with conditions overbought but momentum still strong. Intraday, the pair could test 0.8185, though 0.8205 is seen as a tough barrier.

The GBP/JPY cross attracts some buyers at the start of a new week and maintains its bid tone around the 208.25-208.30 region through the first half of the European session.

The Euro (EUR) accelerates its downtrend against the US Dollar (USD) on Monday, weighed by risk-averse markets, with Oil prices above the $100 level and a stronger US Dollar, amid rising hopes of a Federal Reserve (Fed) rate hike on Wednesday.

The Australian Dollar (AUD) is down against its major currency peers, trading 0.45% lower at around 0.7135 against the US Dollar (USD) during the European trading session on Monday.

Silver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.

The NZD/USD pair meets with fresh supply at the start of a new week and drops to its lowest level since July 29, around the 0.5780 region during the early European session. Moreover, the fundamental backdrop suggests that the path of least resistance for spot prices remains to the downside.

UOB strategist Quek Ser Leang reports USD/JPY dropped to 153.23 and closed at 153.54, with intraday bias tilted lower but expected to stay within 153.05–154.30.

The USD/CAD pair posts modest gains around 1.3875 during the early European trading hours on Monday. The US Dollar (USD) edges higher against the Canadian Dollar (CAD) amid rising expectations for a Federal Reserve (Fed) interest rate hike later on Wednesday. 

The Japanese Yen (JPY) reflects a mixed performance against its major currency peers, but is significantly down against the US Dollar (USD), in the European trading session on Monday. As of writing, USD/JPY is up 0.44% to near 154.20.

Silver (XAG/USD) shows minor losses at Monday’s early European session, amid a bearish near-term trend and with bears looking at a key support area around $63.00.

UOB’s Quek Ser Leang highlights that EUR/USD slipped to 1.1568 before rebounding to close near 1.1598, with downside momentum still limited. Intraday, the Euro (EUR) is expected to test major support at 1.1565 but a clear break is seen as unlikely, with resistance at 1.1605 and 1.1620.

The GBP/USD pair declines to near 1.3505 during the early European session on Monday. The US Dollar (USD) strengthens against the British Pound (GBP) as traders pondered possible rate hikes from the Federal Reserve (Fed) later on Wednesday.

The British Pound (GBP) is up against its major currency peers, except North American currencies, at the start of the United Kingdom (UK) data-packed week and the Bank of England’s (BoE) monetary policy announcement.

USD/CHF extends its winning streak for the fourth consecutive day, trading around 0.8180 during Asian hours on Monday. The pair appreciates as the US Dollar (USD) gains support amid aggressive Federal Reserve (Fed) rate-hike bets for Wednesday’s decision following hotter US inflation reports.

The AUD/JPY cross trades on a flat note near 110.10 during the early European trading hours on Monday.

The Euro (EUR) is down 0.28% to near 1.1565 against the US Dollar (USD) during the European trading session on Monday.

EUR/JPY gains ground after registering losses in the previous day, trading around 178.30 during Asian hours on Monday. Technical analysis of the daily chart indicates the currency cross remains within the descending channel pattern, signalling an ongoing bearish bias.

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

The NZD/USD pair tumbles to around 0.5790 during the early Asian trading hours on Monday. The New Zealand Dollar (NZD) weakens against the US Dollar (USD) on a dovish hike from the Reserve Bank of New Zealand (RBNZ).

USD/CAD halts its three-day winning streak, trading around 1.3870 during Asian hours on Monday. The pair inches lower as the commodity-linked Canadian Dollar (CAD) receives support from elevated oil prices.