The US Dollar (USD) is holding steady against major currencies on Tuesday after Monday’s strong rally. Traders are now shifting their focus to key US economic releases, including July’s Consumer Confidence report, June’s JOLTS Job Openings, and Goods Trade Balance data. In parallel, market participants are closely watching developments from the second day of trade talks between the United States and China.
On Monday, the USD Index surged by 1%, marking its biggest single-day gain since May, boosted by optimism surrounding the new US-EU trade agreement. According to Reuters, US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng met in Stockholm to address long-standing trade and technology disputes. China reportedly sought relief from US-imposed tariffs and restrictions on tech exports. Early Tuesday, the USD Index trades within a tight range around 98.70, while US equity futures show modest gains.
Major Pair Updates:
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USD/CAD:
The pair rose by 0.3% on Monday, extending its winning streak to three days. Canadian Prime Minister Mark Carney commented that trade negotiations with the US are ongoing, despite President Trump’s remarks labeling Canada as “difficult to deal with.” Carney noted that any US offer would likely come with retaliatory tariffs, complicating consensus. On Tuesday, USD/CAD trades just below 1.3750 in a consolidation phase. -
AUD/USD:
AUD/USD dropped sharply on Monday amid widespread USD strength. The pair stabilized early Tuesday, hovering slightly above the 0.6500 level. Traders now await Australia’s Q2 Consumer Price Index (CPI) data, due during Wednesday’s Asian session. -
EUR/USD:
The Euro lost over 1% on Monday, wiping out the previous week’s gains. EUR/USD remains subdued and trades below 1.1600 in early Tuesday action, with limited upward momentum. -
GBP/USD:
The British Pound continues to struggle, staying below 1.3350 after falling 0.6% on Monday. Market participants await June’s Mortgage Approvals and New Lending to Individuals figures from the Bank of England, scheduled for release later in the session. -
USD/JPY:
The pair slipped below 148.50 after reaching a fresh weekly high of 148.70 during Asian trading hours. The correction comes as traders reassess short-term positioning amid fluctuating risk sentiment. -
Gold (XAU/USD):
Gold started the week on a bearish note, falling to a three-week low near $3,300. The precious metal is staging a mild recovery on Tuesday, with XAU/USD trading near $3,320 as safe-haven demand sees a modest pickup.
