The US Dollar (USD) continued to weaken against its major rivals at the beginning of the week, with the USD Index losing 0.4% on the day. As market attention turns to US data releases ahead of Wednesday's all-important Federal Reserve (Fed) monetary policy announcements, investors seem to be moving to the sidelines. In the European session, Germany's ZEW Institute will publish September Economic Sentiment data for Germany and the Eurozone. In the second half of the day, August Retail Sales and Industrial Production data will be featured in the US economic docket.
EUR/USD gathered bullish momentum and Monday and climbed to a fresh 10-day high above 1.1100. Early Tuesday, the pair stays in a consolidation phase near Monday's closing level.
GBP/USD extended its rebound to begin the week and rose above 1.3200 for the first time in over a week. The pair fluctuates in a narrow channel at around 1.3210 in the European morning. Early Wednesday, the UK's Office for National Statistics will release the August inflation report.
Statistics Canada will publish Consumer Price Index (CPI) data for August later in the day. On a monthly basis, the CPI is forecast to rise 0.1% following the 0.4% increase recorded in July. After closing the first day of the week virtually unchanged, USD/CAD holds steady to start the European session and trades slightly below 1.3600.
AUD/USD started the week on a firm footing and gained 0.7% despite the latest batch of disappointing macroeconomic data releases from China. The pair stays relatively quiet on Tuesday and moves up and down in a narrow band at around 0.6750.
After touching its lowest level in over a year below 140.00 on Monday, USD/JPY staged a rebound and erased the majority of its daily losses. The pair stays calm near 140.50 in the European morning.
Gold set a new record-high near $2,590 on Monday but failed to preserve its bullish momentum. XAU/USD trades above $2,580 early Tuesday
