Financial markets exhibited muted activity on the second trading day of the week. Investors are closely eyeing the August ISM Manufacturing PMI data from the US, which is set to be released later today. With the long weekend in the US and Canada concluding on Tuesday, trading conditions are expected to return to normal during American trading hours.
The US Dollar (USD) Index experienced slight losses on Monday due to thin trading volumes. As of early Tuesday, the index remains steady above 101.50, with the 10-year US Treasury bond yield hovering around 3.9%. US stock index futures are trading in negative territory. The ISM Manufacturing PMI is anticipated to increase to 47.5 in August from 46.8 in July.
European Session Highlights:
In the early European session, Swiss data revealed a 1.1% annual rise in the Consumer Price Index (CPI) for August, down from the 1.3% increase recorded in July and falling short of the 1.2% forecast. Additionally, Switzerland’s Gross Domestic Product (GDP) grew at an annual rate of 1.8% in Q2, a significant improvement from the 0.6% growth in Q1. Despite these figures, USD/CHF remained relatively stable, trading sideways above 0.8500.
The EUR/USD pair, which ended the first trading day of the week on a positive note, struggled to maintain its recovery momentum and edged lower toward 1.1050 early Tuesday.
GBP/USD remained largely unchanged on Monday but has since trended lower, moving toward 1.3100 during the European morning.
Gold prices touched a one-week low of $2,490 on Monday but managed to recover some losses. XAU/USD remains steady on Tuesday but continues to trade below $2,500.
The USD/JPY pair closed its fourth consecutive trading day in positive territory on Monday, reaching its highest level in nearly two weeks above 147.00. However, it faces bearish pressure early Tuesday, falling toward 146.00.
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