What to watch for on Tuesday, September 6:
The USD started the week advancing against most major rivals, although the US federal holiday kept volumes at their lows and major pairs within limited intraday ranges.
The EUR/USD pair fell to 0.9877, a new 22-year low, as the energy crisis deepens. Russian gas supplier Gazprom shut down the Nord Stream 1 pipeline on Friday, reporting a leak. On Monday, news agencies reported that Moscow’s decision to cut power to Europe will continue until Western nations lift sanctions imposed after the invasion of Ukraine. Germany announced that it will maintain two nuclear power plants until April. Uncertainty heading into winter is likely to keep the shared currency on the downside of the equation.
The GBP/USD pair stood at 1.1515 after falling to 1.1442. The UK confirmed that Liz Truss will become the next Prime Minister after overtaking Rishi Sunak as Tory leader.
The USD/CAD pair remains lifeless around 1.3140, while the AUD/USD pair struggles against the 0.6800 level ahead of the Reserve Bank of Australia’s monetary policy decision. The central bank is expected to raise the interest rate by 50 basis points for the fourth consecutive month.
Gold, which is a safe haven, saw no action and hovered around $1,710 a troy ounce. OPEC+ announced its plans to cut production targets by about 100,000 barrels a day from October. The announcement lifted oil prices, although the US holiday limited activity around WTI, which is now trading at $88.80 a barrel.
The USD/JPY pair is trading around 140.50, while the USD/CHF is hovering around 0.9800.
Source: Fx Street
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