Session Recap: USD and gold rise on a quiet summer day

FXstreet.com (San Francisco) - The Greenback traded higher on Monday as volume was low across the market and investors were reluctant to take risks. As FXstreet.com chief analyst Valeria Bednarik said in a recent report, "with little behind the movement but a general risk off sentiment."

The Gold was the winner of the session as the commodity was fueled by the increasing demand in China and rose around $25, or 1.78% to $1,335/oz. US stocks traded mixed.

The EUR/USD traded negative for second day and tested the 1.3300 area; The GBP/USD fell below the 1.5500 area to test 1.5460; The USD/JPY recovered all Friday losses and tested sub 97.00 prices. The USD/CAD recovered some ground after two days of big losses and now it is at 1.0300.

The AUD/USD performed its first negative day in the last 6 sessions with the Aussie retreating from 0.9220 to close around 0.9150.

Main headlines in the American session:

Portugal agrees to €4.7bn spending cuts with Troika

Gold jumps to 1340 region, silver resumes bullishness amidst fresh highs

Fed guidance more powerful than effect of QE – Fed study

US July Monthly Budget shows a deficit of $97.6B

Wall Street opens the week with mixed numbers