The US Dollar lost some ground on Monday, although a scarce macroeconomic calendar kept major pairs within familiar levels.

The market sentiment remained sour, while government bond yields advanced, reflecting the ruling cautious stance. The US Treasury yield hit its highest since 2007, as investors are concerned global central bankers will extend the monetary tightening programs to tame inflation.

China remained in the eye of the storm, with news indicating that  government land sales revenue declined for the 19th consecutive month in July. The People’s Bank of China (PBoC) cut the one-year Loan Primer Rate by 10 basis points (bps) to 3.45% on Monday, as expected,  following similar measures last week and falling short from expectations of bolder measures. The Yuan fell with the news, as speculative interest was waiting for a more aggressive measure to support the local currency. Later in the day,  UBS cut China’s 2023 real GDP growth forecast to 4.8% from 5.2%.

German Bundesbank monthly report showed inflation could persist above the central banks targets for longer while growth is foreseen seen largely flat in Q3.

EUR/USD struggles around 1.0900, lacking momentum to run past the level. GBP/USD looks better poised to extend gains, trading at around 1.2740. The Australian Dollar gained vs its American rival, will Gold prices also up, although the latter held below $1,900. The USD/CAD edged higher as a decline in oil prices weighed down the Loonie.

USD/JPY trades above 146.00 and near its recent multi-month high of 146.53 amid mounting speculation the Bank of Japan will need to readjust its ultra-loose monetary policy soon.

 The macroeconomic calendar has little to offer this week, with the focus on the Jackson Hole Symposium starting next Thursday. Federal Reserve (Fed) Chair Jerome Powell and European Central Bank (ECB) President Christine Lagarde will speak on Friday, with market players hoping for clues on future decisions.