Major currency pairs remained largely unchanged early Monday as traders awaited significant economic data and central bank meetings scheduled for this week. The sole data release from the US economic docket is the Dallas Fed Manufacturing Business Index.
The US Dollar (USD) Index continues to trade sideways below 104.50 in the European morning, after closing the previous week with minimal change. Concurrently, US stock index futures are trading positively, while the benchmark 10-year US Treasury bond yield stays below 4.2%. The Federal Reserve (Fed) is set to announce its monetary policy decisions on Wednesday following its July 30-31 meeting. Additionally, employment-related data from the US throughout the week will be closely monitored by investors.
The EUR/USD pair saw minor gains on Thursday and Friday but ended the week with losses. The pair is steady at around 1.0850 as the European session begins. On Tuesday, the European economic docket will feature second-quarter Gross Domestic Product (GDP) data from Germany and the Eurozone, along with German inflation data for July.
GBP/USD fell nearly 0.4% last week, marking its second consecutive week in negative territory. The pair remains in a consolidation phase above 1.2850 on Monday. The Bank of England (BoE) will announce its interest rate decisions on Thursday.
Gold regained some momentum on Friday, offsetting part of its weekly losses. Although XAU/USD began the week on a positive note, climbing above $2,400 during Asian trading hours, it fell back below this level by the European morning. At the time of writing, gold was trading marginally higher at around $2,390.
The Bank of Japan (BoJ) will release its monetary policy decision on Wednesday during the Asian session. USD/JPY, which lost over 2% last week, edged lower early Monday. As of writing, the pair was trading slightly below 153.50.
The Australian Bureau of Statistics will publish the quarterly Consumer Price Index (CPI) data for the second quarter on Wednesday. AUD/USD recorded losses for nine consecutive trading days, hitting its lowest level since early May near 0.6500 before a modest rebound on Friday. The pair is trading in a narrow range at around 0.6550 in the European morning on Monday.
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