Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $65.90 per troy ounce, down 0.47% from the $66.21 it cost on Friday.
RaboResearch notes that the ECB’s Transmission Protection Instrument provides a backstop for Eurozone government bonds during stress not justified by fundamentals.
TD Securities economists Oscar Munoz and Eli Nir expect August Consumer Price Index (CPI) to prove subdued enough to keep the Federal Reserve (Fed) on hold in September, with the CPI-to-PCE translation also pointing to contained underlying inflation.
United Kingdom (UK) Chancellor of the Exchequer John Healey signaled in a scheduled speech during the European trading session on Monday that the government will continue focusing on maintaining fiscal discipline, in an attempt to contain higher borrowing costs.
Danske Bank’s Danske Research Team notes Brent crude trading near USD 97 as renewed US-Iran strikes around the Strait of Hormuz raise concerns over prolonged disruptions to Middle East energy flows.
Dow Jones futures are down by 0.32% to trade near 53,270 during European hours on Monday. Meanwhile, S&P 500 futures steady near 7,720, while Nasdaq 100 futures advance by 0.31% to trade around 29,660. The US stock market will be closed Monday for the Labor Day holiday.
West Texas Intermediate (WTI), futures on NYMEX, turns upside down to near $89.50 during the European trading session on Monday.
The GBP/JPY cross meets with heavy supply during the early part of the European session on Monday and weakens below the 209.00 mark, hitting its lowest level since February 24 amid a broad-based rally in the Japanese Yen (JPY).
BNY’s Geoff Yu notes that strong U.S. payrolls have lifted September Fed hike odds back toward 60%, leaving rate expectations highly data-dependent as the Fed enters its blackout.
ING’s Chris Turner argues that Euro fundamentals remain contained despite German regional election results highlighting political tensions for Chancellor Merz’s CDU. Solid Eurozone growth and investor confidence are offset by downside risks from this week’s ECB meeting.
DBS Group Research strategist Philip Wee highlights growing downside risks in CHF/JPY after the cross failed to re-enter its February–July 198–204 range and slipped to 193.
EUR/CAD remains stronger for the second consecutive day, trading around 1.6080 during European hours on Monday.
Eurozone’s Sentix Investor Confidence data, a key indicator of Investor morale, comes in significantly higher at 5.1 in September from 0.9 in August. The sentiment data turned positive in August after remaining negative in the previous five months.
The Swiss Franc (CHF) bounced up against the US Dollar (USD) on Monday.
Commerzbank’s Thu Lan Nguyen argues that EUR/USD remains primarily driven by the US Dollar, with Euro-side developments only amplifying or dampening trends.
The British Pound (GBP) is marginally higher at around 1.3525 against the US Dollar (USD) during the European trading session on Monday.
Brown Brothers Harriman’s (BBH) Elias Haddad argues that United Kingdom (UK) July Gross Domestic Product (GDP), expected flat month-on-month, is unlikely to alter Bank of England (BoE) expectations.
Here is what you need to know on Monday, September 7:
NZD/USD depreciates after two days of gains, trading around 0.5880 during European hours on Monday. The pair depreciates as the New Zealand Dollar (NZD) faces pressure from cautious sentiment surrounding the Reserve Bank of New Zealand’s (RBNZ) policy outlook.
MUFG’s Lloyd Chan notes the Dollar strengthened after a stronger-than-expected August US jobs report, with Nonfarm Payrolls and labour participation surprising to the upside while wage growth eased.
The USD/CAD pair extends its sideways consolidative price move through the early European session on Monday and currently trades just below mid-1.3800s.
According to UOB strategists Oil prices extended gains, with Brent crude settling above $96 and posting a strong weekly rise as disruptions to Middle East supply routes and renewed geopolitical tensions supported energy markets.
Silver (XAG/USD) nudges lower on Monday, hitting session lows in the mid-$65.00s after a reversal from the $68.00 area.
DBS strategist Philip Wee argues that downside risk in EUR/JPY is less straightforward than in CHF/JPY.
Danske Research notes that a strong US labour market report increased expectations of a more hawkish Federal Reserve, pressuring global equities. The S&P 500 declined while the Stoxx 600 posted a small gain, with cyclicals outperforming and rate-sensitive sectors underperforming.
The EUR/GBP cross loses ground to around 0.8585 during the early European trading hours on Monday. The Euro (EUR) attracts some sellers against the British Pound (GBP) following the German economic data.
ING’s Frantisek Taborsky highlights a busy CEE data and policy calendar, with Hungary’s inflation seen edging up, the National Bank of Poland and Central Bank of Turkey expected on hold, and Romania’s inflation falling sharply on base effects.
The Australian Dollar (AUD) trades 0.13% higher at around 0.7217 against the US Dollar (USD) during the European trading session on Monday, the highest level seen in over three months.
The Indian Rupee (INR) gains against the US Dollar (USD) at the start of the week.
Gold (XAU/USD) shows some resilience below the $4,400 mark and recovers intraday losses during the first half of the European session on Monday. Any meaningful upside, however, seems limited as traders might opt to wait on the sidelines ahead of the latest US inflation figures, due later this week.
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