Live Commentary

GBP/USD at 1.2910, stable despite US political developments, after touching high of 1.2942. Technicals: GBP/USD finds support at 1.2894, consolidating from highs. Bullish momentum holds; RSI positive with resistance at 1.2950, 1.3044 and supports at 1.2860, 1.2803.

USD/CAD gains further to near 1.3750 after downbeat Canadian Retail Sales data for May. Canadian Retail Sales contracted at a faster-than-expected pace, boosting BoC’s subsequent rate-cut prospects. The US Dollar rises as prospects of Trump’s victory in the US presidential elections improve.

EUR/USD inches lower with expectations of the ECB maintaining current interest rates at Thursday's meeting. Fed Governor Christopher Waller stated that the US central bank is ‘getting closer’ to a rate cut. Firm Fed rate-cut prospects have weighed on the US Dollar.

USD/CAD surrenders its entire intraday gains and turns negative as the US Dollar falls back due to firm Fed rate-cut prospects. Intraday gains in the US Dollar were driven by an assassination attack on US former President Donald Trump. The Canadian Dollar will dance to the tunes of Canada’s inflation data for June.

The Pound Sterling holds strength against the US Dollar as Fed rate cuts become appropriate for this year. Softer-than-expected US inflation boosts hopes of Fed rate cuts in September. The UK economy grew at a faster pace of 0.4% in May, beating consensus of 0.2%.

Gold rises as Powell sets a cautiously optimistic tone on his second day of testimony to lawmakers in Washington. Although he did not state when the Fed would propose to cut interest rates, he indicated it might be soon. Market-based gauges continue to show a high probability of a rate cut in September – a positive for Gold.

AUD/USD trades sideways with US Inflation in focus. Fed Powell cited concerns over easing US labor market strength. The RBA is expected to leave interest rates unchanged for the entire year.

EUR/USD steadies above 1.0800 as easing US labor market strength weighs on the US Dollar. Fed’s Powell may refrain from providing a specific timeframe for rate cuts. ECB’s Knot doesn’t see the central bank delivering subsequent rate cuts in July.

USD/CAD losses ground as the commodity-linked Canadian Dollar receives support from the upside of the crude Oil prices. Oil prices appreciate due to escalated Cross-border tensions between Israel and Lebanon's Hezbollah. US GDP Annualized (Q1) is expected to slightly increase by 1.4%, against the previous growth of 1.3%.

The Japanese Yen is giving up on 160.00 against USD. Traders are testing the Japanese Governmnent which might not take action until Friday. The US Dollar Index pops higher after some hawkish Fed comments.