The US dollar (USD) maintains its position early on Monday but struggles to regain ground after Friday's sharp selloff in the US session. The US economic calendar will include the Chicago Fed National Activity Index and July New Home Sales data later in the day. The August Texas Manufacturing Survey will also be released by the Federal Reserve Bank of Dallas.
Fed Chair Jerome Powell announced Friday that they will abandon the "makeup" strategy for inflation and embrace a new policy framework of flexible inflation targeting during his speech on "Economic Outlook and Framework Review" at the annual Jackson Hole Economic Symposium. Powell stated that it would be realistic to anticipate that the inflationary impacts of tariffs would be temporary, but he noted that there were increasing downside risks to the labor market. Due to these remarks, there was a sell-off in the USD before the weekend, and the USD Index lost almost 1% of its value that day, wiping out all of its weekly gains. Meanwhile, Friday saw a more than 1% increase in Wall Street's major indexes. The most recent loss for US stock index futures was between 0.1% and 0.2%.
Friday saw a significant increase in EUR/USD, which ended the week slightly higher. On Monday morning in Europe, the pair remains in a consolidation period at 1.1700. Market participants will keep a close eye on Germany's IFO-Current Assessment and Business Climate statistics.
GBP/USD ended a four-day losing trend on Friday, rising more than 0.8%. During the European session, the pair remains comparatively quiet and oscillates above 1.3500.
The USD/JPY trades above 147.00 after correcting upward after losing almost 1% on Friday. According to Japanese data, the Leading Economic Index fell from 106.1 in May to 105.6 in June.
Gold gained positive momentum on Friday and surged to a two-week high above $3,370 after spending the rest of the week around $3,350. Early on Monday, XAU/USD moves in a narrow channel and stays steadily above $3,360.
Fed Chair Jerome Powell announced Friday that they will abandon the "makeup" strategy for inflation and embrace a new policy framework of flexible inflation targeting during his speech on "Economic Outlook and Framework Review" at the annual Jackson Hole Economic Symposium. Powell stated that it would be realistic to anticipate that the inflationary impacts of tariffs would be temporary, but he noted that there were increasing downside risks to the labor market. Due to these remarks, there was a sell-off in the USD before the weekend, and the USD Index lost almost 1% of its value that day, wiping out all of its weekly gains. Meanwhile, Friday saw a more than 1% increase in Wall Street's major indexes. The most recent loss for US stock index futures was between 0.1% and 0.2%.
Friday saw a significant increase in EUR/USD, which ended the week slightly higher. On Monday morning in Europe, the pair remains in a consolidation period at 1.1700. Market participants will keep a close eye on Germany's IFO-Current Assessment and Business Climate statistics.
GBP/USD ended a four-day losing trend on Friday, rising more than 0.8%. During the European session, the pair remains comparatively quiet and oscillates above 1.3500.
The USD/JPY trades above 147.00 after correcting upward after losing almost 1% on Friday. According to Japanese data, the Leading Economic Index fell from 106.1 in May to 105.6 in June.
Gold gained positive momentum on Friday and surged to a two-week high above $3,370 after spending the rest of the week around $3,350. Early on Monday, XAU/USD moves in a narrow channel and stays steadily above $3,360.
