EUR/USD is trading at 1.05018, 0.21% down since previous day close. The downward momentum can be seen in EURO as traders remain cautious over Fed’s hawkish future monetary decision. Last week, the U.S Fed Powell hinted for one more rate hike in this year; although keeping an interest rate steady at 5.50% in its recent meeting. On data front, the Euro-zone Money Supply fell by 1.3% against the previous figure -0.4% the Private Loans grew by just 1.0% against the expectation 1.2%. The focus will be on Fed Powell’s speech due on Friday. As seen in the chart, the pair is firmly trading below the major Moving Averages while it is still hovering near previous lows in weekly chart which indicates an either side breakout on short to medium term basis.

JAP225 is trading at 31774, 0.21% down since previous day close. The Japanese stocks tumbled down amid sell-off in global markets on account of rising fear over hawkish rate hike stance in next Fed meeting. Last week, the FOMC Powell hinted one more rate hike in this year followed by two more hikes in the year 2024; leaving the rate steady at 5.50% range in his latest meeting. On regional front, the Bank of Japan (BoJ) left an interest rate steady at -0.10% while the traders were expecting an end to negative interest rate cycle. The Japan’s SPPI rate grew by 2.1% from 1.7% in the previous month & the BoJ Core CPI rose by 3.3% against expectation 3.2%. As seen in the chart, the index is trading below the long-term MA (100) & hence, slight selling bias may be recommended for the day.

Gold is trading at $1874.44, 0.29% down since previous close. A strong breakdown can be seen in gold prices as worsening situation cab ne witnessed in Chinese property markets & hence, can affect the consumption demand of gold since China is a major consumer of metals. Globally, the strong USD & rising U.S bond yields as U.S Fed hinted for one mor rate hike in this year & two more hikes in the year 2024 in order to control the sticky inflation rate dragged down the precious metals. The fear looms over chances of U.S government shutdown which may remain vital for gold. As seen in the chart, the gold is trading near lower trend-line of channel pattern & hence, the cautious trading may be expected.