Gold and Euro strengthen as USD retreats, Canadian Dollar drops to 3-week low

From Investing.com: 2024-06-25 04:32:00

Gold prices strengthened by 0.59% on Monday as the US dollar retreated from an eight-week high. Investors are awaiting key economic reports this week to get insight into the Fed’s interest rate cut plans for the year. The market sees a 67.7% probability of a rate cut in September, up from 59.5%. Safe-haven flows boosted gold amid geopolitical tensions. The US Dollar Index fell by 0.33%, pushing investors towards gold. XAU/USD pair may be influenced by the US Consumer Confidence report today.

The Euro gained 0.38% against the US dollar as the DXY dipped due to technical resistance. Japanese intervention speculation and weak German business confidence exert bearish pressure on EUR/USD. Traders see almost 50 bps worth of rate cuts over 6 months and expect the ECB to be more dovish than the Fed. Today, the US Conference Board Consumer Confidence Index data may impact EUR/USD. Higher figures could push the pair below 1.07000, while lower numbers could lead to a rally towards 1.07800.

The Canadian Dollar rose by 0.29% on Monday as the USD weakened and speculations rose about the Bank of Japan’s intervention in the Forex market. USD/CAD has been falling despite Fed rate cut caution. BOC expected to be more dovish than the Fed. Today, the Canadian Consumer Price Index (CPI) data may significantly influence USD/CAD. Higher-than-expected inflation could lead to a break below 1.36000, while lower numbers might push the pair towards 1.36800.



Read more at Investing.com: Gold, Euro Strengthen on USD’s Pullback; Canadian Dollar Drops to a 3-Week Low