EU Consumer Confidence, Existing Home Sales, Richmond Manufacturing

The EUR/USD remained steady below 1.0900 on Monday as the new trading week began with relatively low activity. Limited significant data is expected during the first half of the week, resulting in traders largely holding their positions as they anticipate the release of key Purchasing Managers Index (PMI) figures for both the EU and the US on Wednesday.

Tuesday will see the release of mid-tier US Existing Home Sales Change for June, while Wednesday is anticipated to feature the release of important Purchasing Managers Index (PMI) data prints, which will be closely monitored by EUR/USD traders. Thursday will continue to be significant with high-impact US data, including the annualized Gross Domestic Product (GDP) for the second quarter of 2024. The trading week will wrap up with the release of US Personal Consumption Expenditure - Price Index (PCE) inflation on Friday, providing crucial US inflation data.

Gold prices experienced a decline to their lowest point in over a week on Monday, attributed to a strengthening dollar. Traders are eagerly anticipating upcoming U.S. economic data releases and insights from Federal Reserve officials during the course of this week to gain clarity on the potential timing of interest rate adjustments.

The market's focus is now directed towards the release of U.S. gross domestic product data for the second quarter on Thursday, as well as the personal consumption expenditure (PCE) data scheduled for Friday.

According to CME's FedWatch data, money markets have completely factored in a 25-basis-point Fed rate cut by September. Lower interest rates serve to reduce the opportunity cost associated with holding non-yielding bullion.

Oil prices experienced a second consecutive decline on Monday, reaching their lowest point in over a month. This downward trend was attributed to the increasing stockpiles and indications of weakening demand, as investors seemed to overlook U.S. President Joe Biden's decision to end his reelection bid. 

In the Middle East, Israeli fighter jets carried out strikes on Houthi military targets near Yemen's Hodeidah port, resulting in the loss of at least six lives. 

Additionally, China, a major oil importer, surprised the markets when it decreased a key short-term policy interest rate and benchmark lending rates to stimulate its economy. However, this move did not provide the expected support for oil prices.

On Monday, Wall Street's key benchmarks closed higher, with investors shifting their focus back to megacap growth stocks. This move helped the US 500 and The US Tech 100 bounce back from their worst weekly performance since April. Similarly, the US 30 returned to positive territory, ending a two-session skid following its all-time closing high last Wednesday.

The exit of Biden from the political scene could lead investors to unwind trades that were based on expectations of increased U.S. fiscal and inflationary pressures under a Republican Trump victory. 

In other news, In response to a Reuters report indicating that Nvidia, the artificial intelligence chip leader, was developing a version of its new flagship AI chips for the China market compliant with current U.S. export controls, Nvidia's stock rose by more than 4.5%.