EUR/USD closed near 1.1550 on Monday, 0.42% lower, and beneath both of its moving averages for the first time since late July. The 50-day and 200-day Exponential Moving Averages (EMA), the chart's two usual reference lines, now sit two pips apart, so the pair fell through one line rather than two.

GBP/USD closed just beneath 1.3500 on Monday, 0.19% lower, after trading to its lowest since August 14 in the London morning and buying back half of the drop by the close.

The GBP/JPY cross-pair rises over 0.12% and trades at around 208.30 as risk appetite shifts to the sour side due to a rise in energy prices and bond yields, as investors grow uneasy about a possible reacceleration of inflation ahead of three monetary policy decisions by major central banks.

NZD/USD trades lower on Tuesday, changing hands near 0.5780, down around 0.6% on the day. The pair has slipped below 0.5760 to its lowest level since mid-July, after giving back ground overnight from a session high near 0.5820.

USD/JPY is trading higher on Monday near 154.40, after touching an intraday high just shy of 155.00.

The USD/CHF extends its gains for the seventh straight trading session, up a minimal 0.05% after registering a one-month high of 0.8195, shy of cracking the 0.8200, but ultimately the pair is poised to end the session at around 0.8169.

USD/CAD edges higher on Monday as Fed rate hike expectations lift the US Dollar (USD) to a nearly two-week high, while rising Oil prices provide little support to the commodity-linked Canadian Dollar (CAD).

EUR/GBP slides on Monday, trading around 0.8560 as the Euro (EUR) side of the cross is underpinned by a European Central Bank (ECB) that remains hawkish. The pair hit a two-week low of 0.8554 earlier in the day before the Pound (GBP) gained some ground.

The British Pound tested two-month lows of 1.3464, trimmed some of its earlier losses, but it remains in the red, down 0.23% amid a light economic docket in the US and the UK as both central banks of each country get ready to release their monetary policy decisions on September 16 and 17, respective

EUR/CAD declines to around 1.6060 on Monday at the time of writing, down 0.17% on the day. The Canadian Dollar (CAD) benefits from the sharp rise in Oil prices, while the latest Canadian inflation data do little to alter the near-term monetary policy outlook.

USD/JPY climbs on Monday as US Dollar (USD) demand picks up ahead of the Federal Reserve’s (Fed) interest rate decision on Wednesday.

AUD/USD slipped to a new monthly low in the 0.7100s on Monday, driven by a firm run of United States (US) data that has pushed the market toward pricing in a Federal Reserve (Fed) rate hike at its meeting later this week.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that recent Oil-driven market moves and sticky US Consumer Price Index (CPI) have strengthened expectations for a September Fed hike, but the futures curve already prices nearly 100 bps of tightening over twelve months.

EUR/USD trades under pressure on Monday, with the Euro (EUR) losing around 0.55% against the US Dollar (USD). The Greenback strengthens across the board as traders position for a possible Federal Reserve (Fed) interest rate hike at the September 15-16 monetary policy meeting.

GBP/USD extends its decline on Monday and trades around 1.3470 at the time of writing, down 0.38% on the day. The pair falls to the lower end of its monthly range, weighed down by renewed demand for the US Dollar (USD) ahead of several major monetary policy decisions.

DBS Group Research’s Philip Wee argues that the Euro has a subtle advantage over the Dollar this week, as the European Central Bank’s recent hikes and focus on inflation underscore its institutional credibility.

USD/CAD edges higher for the fourth consecutive day as a stronger US Dollar (USD) outweighs support for the Canadian Dollar (CAD) from rising Oil prices. Traders show a muted reaction to the latest Canadian inflation figures.

Silver (XAG/USD) trades under pressure at the start of the week, with both the fundamental and technical backdrop pointing to further downside. At the time of writing, XAG/USD trades around $63, down roughly 2.40% on the day.

NZD/USD extends its decline on Monday, trading around 0.5770 at the time of writing, down 0.72% on the day.

Philip Wee at DBS Group Research highlights a growing policy-regime change advantage for the Japanese Yen (JPY) versus the US Dollar (USD). Following joint US-Japan intervention and expectations of further Bank of Japan (BoJ) tightening, speculators have unwound short JPY positions.

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.