The start of the new trading week has been uneven for currencies, with the US dollar falling during the American session. The US Dollar Index ended the day unchanged, remaining close to the 102.00 mark. While the 2-year rate decreased to 4.76%, the US 10-year Treasury yield increased to 4.1%.
Economic Data
Australia will provide information on consumer confidence during the Asian session, and China will present trade data. In comparison to the prior year, it is predicted that exports will decrease by 12.5% and imports by 5%.
Later in the day, the final German Consumer Price Index will be made public. Trade statistics will also be made available from the US and Canada. The impending US inflation statistics due out on Thursday and Friday are the main focus of market traders.
Key Developments
After cutting losses and making gains following the Non-Farm Payrolls (NFP) report, the EUR/USD pair ended the day around 1.1000. Germany’s industrial production shrank by 1.5% in June, giving a preview of the unfavourable production data to come.
Data on growth will be made public in the UK on Friday. When EUR/GBP fell to 0.8600, it crossed the 20-day SMA. As a result of increasing government bond yields and more risk taking, the USD/JPY appreciated on Monday, reaching 142.50. AUD/USD is still trading range-bound near 0.6570, with a strong downside bias.
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