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The USD/EUR currency pair accelerated growth significantly on Friday, as the report showed that the US consumer prices rose less than anticipated in July. The Euro gained against the Greenback 30 base points or 0.26% to continue the trading session above the 1.1798 level. The Labour Department revealed that the US Consumer Price Index surged 0.1% over the course of July, missing expectations for a 0.2% rise. Despite the muted increase in consumer prices, some economists remained convinced that the expansion was affected by transitory factors. Furthermore, the Federal Reserve kept considering the key interest rate hike by the end of this year, albeit the decision would depend on further inflation growth pace.

• How long will the gradual return of risk appetite last?
• Yen lower even as Japanese GDP figures smash expectations;
• Gold lower after falling short at key resistance;
• USD stages rebound but dovish Fed continues to weigh.

Risk appetite is slowly returning to the markets on Monday, with no further escalation between the US and North Korea incentivising a gradual move back towards “riskier” assets.

I don't think this signifies a belief that relations between the two countries will suddenly improve, it's more a case of no news being good news and that will likely continue for as long as it lasts. The problem is that both sides can be rather unpredictable so things could escalate at any point and trigger another dash for safety. Gold, the yen and the Swiss franc may be coming off their highs at the moment but I'm not convinced it will last.

It seems this collective – and possibly temporary – sigh of relief that we're seeing is once again overshadowing the economic news that we had overnight, with Japanese GDP figures smashing expectations while numbers from China – retail sales, industrial production and fixed asset investment – were less encouraging. The safe haven status of the yen appears to be driving today's moves, rather than the data itself, with the currency down against its peers as traders unwind some of last week's positions.

Gold is also coming off its highs, having come close to $1,300 on Friday – peaking just above $1,190 – before once again running into resistance and dropping more than half a percentage point today. Should tensions between the two countries ramp up once again, I'm not sure that $1,300 level will hold for long though, which would see it return to the levels last seen in the immediate aftermath of the US election when markets temporarily went into strong risk aversion mode.

The US dollar is staging a small recovery this morning, after suffering more losses on Friday in response to another uninspiring batch of inflation data for July. Markets are becoming increasingly doubtful that another rate hike will come this year, with December's odds now down to 37%. This wasn't helped by comments on Friday from Robert Kaplan – a voter on the FOMC who typically falls somewhere in the middle – which have been perceived as being rather dovish, with the central banker unconvinced on inflation and wanting to see more evidence of progress before hiking again.

While the start of the week is looking a little quiet, with no data of note to be released on Monday, things will pick up in the coming days with FOMC minutes, retail sales and consumer sentiment figures, among many others, due.

As forecasted, the price of the yellow metal reached the 1,290 mark on Friday. However, the surge has most likely ended in the medium term.

The commodity price has reached and bounced off the upper trend line of a dominant ascending channel pattern near the 1,293 mark. The trend line was and still is supported by the various term levels of significance, which are located from the 1,290 to 1,295 levels. In addition, during the bounce off the junior ascending pattern was broken.

Most likely gold price will continue to decline and form a short term descending pattern, which will guide the metal to the support of the dominant pattern.

The US Dollar was relatively flat against the Yen on Friday, thus remaining in the 109.00/20 area for the whole session. The given lack of momentum changed this morning when the rate managed to reach the weekly PP at 109.62.

The steepness of the downtrend has shifted north, as apparent from the rate's inability to reach the lower channel boundary. Thus, the formation of a junior channel down was confirmed.

Taking into account bullish technical indicators, the upside limit for this session may be set at the upper boundary of either the senior or junior channel circa 109.80 and 110.20, respectively. The latter is also supported by the 200-hour SMA.

GBP/USD halted at the 1.2960 mark on Friday, thus forming a triple bottom. The rate consequently went through the 55– and 100-hour SMAs, the latter of which has since provided strong support near the 1.30 mark.

The Pound is trading sideways this morning, fluctuating around the newlyestablished weekly PP at 1.3001.

It is likely that a support cluster formed by the aforementioned SMAs provides a strong barrier. By and large, no significant leaps either direction are expected today, resulting in a rather flat movement. The Pound, however, may still edge higher against the Greenback and approach the 1.3040 area.

The recent surge of the Euro against the US Dollar to the 1.1850 mark has forces a review of the situation of the pair. Both, short term and medium term patterns were adjusted.

After the adjustment the medium term descending channel pattern is with a lesser incline than previously thought. Meanwhile, the junior patter seems to be still holding. However, in the near future it will become obsolete.

All in all, the forecast of a decline of the pair remains in force. Although, in the next 24 hours the currency pair will face the support of the 55 and 100–hour SMAs together with the weekly PP in a range from 1.1780 to 1.1760

Spot Gold moved lower on Monday after last week’s strong rally peaked at $1291. Profit-taking on increased safe-haven demand rally and overbought daily studies triggered pullback.

Gold price eased to $1280 so far, after failing to regain $1292 peak in early trading on Monday and eye a cluster of supports below.

Initial support lies at $1276 (hourly cloud base / Fibo 38.2% of $1251/$1292 upleg), followed by previous high of 01 Aug at $1274 and 50% retracement / daily Tenkan-sen / 10SMA at $1271.

Overall bullish structure sees $1271 support as ideal reversal point before fresh attempts higher for final attempt towards key barrier at $1296 (06 June peak).

However, deeper correction cannot be ruled out as strong pressure on dollar on geopolitical tensions is easing and indicators that reversed from overbought territory on daily chart show a plenty of room at the downside.

Next pivotal supports at $1267 (Fibo 61.8%) and $1263 (rising 20SMA) could come in focus on violation of $1271 support.

Res: 1287, 1289, 1292, 1296
Sup: 1280, 1276, 1274, 1271

Crude oil is trading lower. Hourly support is given at a distance at 45.40 (24/07/2017 low). Strong resistance can be found at 50.41 (31/07/2017). Expected to show short-term weakness.

In the long-term, crude oil has recovered after its sharp decline last year. However, we consider that further weakness are very likely. Strong support lies at 35.24 (05/04/2016) while resistance can now be found at 55.24 (03/01/2017 high).

Silver's bullish pressures are on. Hourly resistance lies at 17.24 (10/08/2017 high) while support can be found at 16.13 (07/08/2017 high). Expected to show continued current bullish momentum.

In the long-term, the death cross indicates that further downsides are very likely. Resistance is located at 25.11 (28/08/2013 high). Strong support can be found at 11.75 (20/04/2009).

Gold is consolidating lower. Hourly support is given at 1251 (08/08/2017 low). Stronger support lies at 1204 (10/07/2017 high). The commodity is heading towards resistance given at 1296 (06/06/2017 high). Expected to show renewed buying pressures.

In the long-term, the technical structure suggests that there is a growing upside momentum. A break of 1392 (17/03/2014) is necessary ton confirm it, A major support can be found at 1045 (05/02/2010 low)