Euro Retreats from Recent Highs
The euro settled at $1.09 after rising to its highest level in seven months at $1.096,
as traders continue to assess monetary and economic outlooks.
Content:
Euro:
Weak economic data from the United States have raised concerns about a significant slowdown or potential recession in the world’s largest economy, increasing bets that the Federal Reserve will need to cut interest rates more aggressively. Meanwhile, traders in Europe have increased their expectations for rate cuts by the European Central Bank, now anticipating an additional 90 basis points cut this year, with a potential 50 basis points cut in the September meeting.
Gold:
Gold prices stabilize after sliding in the global downturn Gold prices stabilized after the metal drifted in the global downturn on Monday, falling as some traders reduced their holdings to cover potential margin calls. Spot gold prices fell by about 3.2% in the previous session, marking the biggest daily drop since early June before trimming losses. Prices traded in a daily range exceeding $90 per ounce as stocks and commodities slumped.
Australian Dollar:
The Reserve Bank of Australia keeps interest rates at 4.35% The Reserve Bank of Australia (RBA) kept the interest rate unchanged at 4.35%, maintaining borrowing costs for the sixth consecutive meeting, matching market estimates.
However, the central bank remained concerned as inflation remained above the target range of 2-3% before approaching the midpoint by 2026.
The board emphasized the need to stay vigilant to rising inflation risks,
not ruling out any options as they will depend on data.
The policy will remain restrictive enough to guide inflation toward the target.
Simultaneously, the board acknowledged significant uncertainty regarding economic outlooks,
evident from slowing GDP growth, rising unemployment rates, and severe pressures on many businesses.
The RBA also stated that it would closely monitor the global economy, financial markets, domestic demand trends,
inflation expectations, and labor market conditions.
Euro Retreats from Recent Highs