Forex Preview: USD Remains Defensive

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1. Forex Preview: USD Remains Defensive

The dollar remained on the defensive against the safe-haven yen on Monday with market focus being largely attuned to simmering trade tensions. Elsewhere, the GBP recovered some of the losses it had recorded last week while Prime minister Boris Johnson continues to pledge that the UK will leave the EU on October 31 with or without an agreement.  Market focus will remain largely attuned to simmering trade tensions between the world’s two largest economies. 


2. EU Markets Edge Higher 

Major EU indices edged somewhat higher on Monday as last week’s risk appetite lingered. Elsewhere, mainland Chinese shares and Australian markets are headed for a bullish close. In the U.S. Dow futures pointed to a higher open after China fixed the yuan at stronger-than-expected level. On Monday, the People’s Bank of China (PBOC) set its daily midpoint for yuan trading at 7.0211 per dollar – which is weaker than Friday’s session, but still beat market expectations.  It should be noted that a weaker Yuan back in 2015 had caused a major outflow and the PBOC might not let this happen again. We may still see some President Donald Trump react via Twitter on the matter later today.



3. Gold Set to Reclaim $1500, Oil Prices Slip

Gold prices on Monday benefited from the trade turmoil between U.S. and China and hovered around the $1,490 per ounce this morning. XAU/USD could retake the $1500 level if we see any negative developments on the US/China trade standoff. Meanwhile, oil prices dipped on Monday amid worries about an economic slowdown which have led to a cut in the growth outlook for oil demand.


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*FXStreet Aug 12, 2019 03:07 AM ET
**Reuters Aug 12, 2019 3:53 AM ET
***CNBC Aug 12, 2019 2:48 AM ET

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