United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe USD/JPY price action as lacking fresh clues after swings between 158.33 and 159.13, leaving intraday trade likely confined to 158.55–159.30.

The Euro (EUR) extends losses as the British Pound (GBP) seems to be coping better with the moderate risk-off mood amid growing tensions between the US and Iran, as Washington pledged an “economic D-Day” on the Islamic Republic.

ING’s Chris Turner notes the Central Bank of the Republic of Türkiye (CBRT) has restarted one-week repo operations, shifting funding back to the 37% policy rate from the 40% overnight lending rate after a prior effective 300bp hike.

The GBP/JPY cross attracts some dip-buyers near the 216.20 area and touches a fresh monthly high during the early part of the European session on Monday. Spot prices currently trade just above the 217.00 mark and seem poised to appreciate further amid a broadly weaker Japanese Yen (JPY).

Silver price (XAG/USD) remains stronger for the fourth successive day, trading around $69.00 per troy ounce during the European hours on Monday. Silver price rises as concerns over United States (US) debt management and fiscal sustainability persist.

Here is what you need to know on Monday, August 24:

The British Pound (GBP) holds mild gains for the fourth consecutive day against the US Dollar (USD) on a calm Monday session, as ongoing concerns about the US Treasury’s bond buyback plans keep US Dollar bulls subdued.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note GBP/USD remains in a short-term consolidation, with price action confined between 1.3620 and 1.3665 after an overbought push to 1.3675.

Commerzbank’s Michael Pfister says the latest breakdown in US–Canada trade talks and Ottawa’s planned retaliatory tariffs point to a potentially protracted trade conflict.

The AUD/USD pair extends the sideways consolidative price move near its highest level since early June, touched on Friday, and holds steady above mid-0.7100s through the early European session.

The USD/CAD pair recovers some lost ground to near 1.3820 during the early European session on Monday. The Canadian Dollar (CAD) weakens against the US Dollar (USD) after US-Canada talks collapse into a trade war. 

MUFG’s Teppei Ino reviews recent USD/JPY trading ahead of Jackson Hole. The pair opened near 159 and repeatedly tested the 160 level, which acted as psychological resistance as traders watched for possible Japanese intervention.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a constructive view on EUR/USD after the pair held near 1.1680 and tested 1.1710 twice.

The EUR/USD pair holds steady near 1.1680 during the early European trading hours on Monday. Fiscal interventions from the US Treasury weigh on the US Dollar (USD) against the Euro (EUR). Traders brace for details of sanctions on Iran and a policy ‌speech this week in the United States (US). 

The NZD/USD pair enters a bullish consolidation phase at the start of a new week and trades around the 0.5975 region during the Asian session, just below its highest level since June, touched on Friday.

USD/CHF depreciates after two days of gains, trading around 0.8000 during the Asian hours on Monday. The currency pair depreciates as the US Dollar (USD) struggles under pressure from newly announced fiscal measures in Washington.

The EUR/JPY cross trades with mild losses near 185.60 during the early European session on Monday.

The Indian Rupee (INR) inches higher against the US Dollar (USD) for the second consecutive day on Monday, positioning itself for a quiet start to the week.

USD/JPY extended its losses for the second straight day after intraday volatility, trading around 158.80 during Asian hours on Monday. The pair declines as the Japanese Yen (JPY) gains ground on stronger-than-expected inflation data, which accelerated for a second straight month.

The USD/CAD pair struggles to capitalize on a bullish gap opening on Monday, though it retains an intraday positive bias amid concerns about a deepening US-Canada trade war.

The GBP/USD pair trades with a positive bias around mid-1.3600s at the start of a new week and remains well within striking distance of its highest level since February 11, touched on Friday.

On Monday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7841 compared to Friday's fix of 6.7817 and 6.7248 Reuters estimate.

EUR/USD remains stronger for the fourth successive trading day, hovering around 1.1680 during the Asian hours on Monday. The currency pair holds its ground as the US Dollar (USD) struggles under pressure from newly announced United States (US) fiscal moves.

The AUD/USD pair trades with mild gains around 0.7175 during the early Asian session on Monday. The US Dollar (USD) edges lower against the Australian Dollar (AUD) amid concerns over the US Treasury's plan to expand buybacks of longer-dated government debt.

The Aussie Dollar finished the week with gains of over 0.82% on Friday and up more than 1.20% for the week as the US Dollar tumbled following the US Treasury Department's announcement of a bond buyback for the long end of the curve. The AUD/USD trades at 0.7170, after rebounding near 0.7067.

The USD/CHF advanced on Friday, registering a modest 0.07% gain, trading at 0.8010. During the week, the pair finished with losses of over 1.49%, triggered by a drop in US yields on Wednesday, as the US Treasury tries to cap elevated yields on the 30-year bond.

The Mexican currency appreciates to levels last seen in May 2024 as the USD/MXN falls to a two-year low as the US Dollar tumbles even though business activity in the services sector improved. The exotic pair trades at 16.92, down 0.22% for the week and 0.50% for the week.

The US Dollar (USD) is muted against the Japanese Yen (JPY). USD/JPY traded in the low 159.00s at the time of writing on Friday.

EUR/USD heads for a fourth consecutive weekly gain on Friday, although it has erased its earlier intraday advance. At the time of writing, the pair trades around 1.1682 after briefly rising above 1.1700, its highest level since May 14.

USD/CHF holds firm on Friday as the US Dollar (USD) trims its intraday losses. At the time of writing, the pair trades around 0.8013 after slipping to 0.7949 on the previous day, its lowest level since June 17.