The US Dollar gained strength against major currencies on Tuesday amid growing expectations of a Federal Reserve interest rate hike scheduled for Wednesday, FX Street reported. The GBP/USD pair lost momentum, slipping to around 1.3490 during Asian trading hours, while USD/JPY edged higher to near 154.55 as traders increased bets on a September rate increase.
Silver prices continued their decline for the second consecutive day, trading around 63.20 dollars per troy ounce. Elevated oil prices have further fueled expectations of a Fed rate hike, putting additional pressure on silver, according to FX Street. Meanwhile, the USD/CAD pair remained steady near 1.3900 during the Asian session.
Market participants are closely watching the UK jobs report due on Tuesday, which could influence Sterling’s direction ahead of the Fed decision. For Japanese investors, the strengthening US Dollar and rising interest rate expectations may impact yen-linked assets and trading strategies in the FX and commodities markets.