Forex Daily Rundown: USD Stumbles, NZD and CAD Diverge

The US Dollar sees short-term weakness, while the New Zealand Dollar rises and the Canadian Dollar faces pressure from crude prices.

The market starts the week with a Neutral MRS of 55, while the CTS stands high at 81. Sentiment, measured by the FSI, is Neutral at 58. The New Zealand Dollar is the strongest currency in today's intraday snapshot, with the Canadian Dollar noted as the weakest.

Major Currency Moves

• The US Dollar has reportedly stumbled, with FXStreet noting that while the short-term direction is unclear due to cooling Fed hike bets from weak NFP figures, the broader picture remains unchanged. Traders await the week's Fed minutes.
• On an intraday basis, the New Zealand Dollar shows strength, with NZD/USD rebounding above 0.5700.
• The Canadian Dollar is the weakest currency, facing headwinds as OPEC+ increases production levels despite falling crude prices.
• The Euro saw its gains slightly reduced, as ABN AMRO points to diverging policy trajectories.
• The Swiss Franc is eyeing its first weekly gain in five weeks, also influenced by the weak NFP data delaying anticipated Fed rate hikes.
• The Chinese Yuan exhibits mixed signals; UOB sees a neutral range bias against the US Dollar, while Societe Generale reports bulls extending gains on strong PMI figures.

Commodities in Focus

• Gold prices have risen as weaker Non-Farm Payrolls data reportedly cooled expectations for Fed rate hikes.
• Silver (XAG) has seen a recovery, regaining the $60 level, with upward momentum pointing to a potential extension toward $65.

Key Events Today

• USD · ISM Services PMI · SCHEDULED — forecast 54.2, previous 54.5