EUR/USD
EUR/USD stays on the front foot above 1.1150 in the early European session on Monday. The US Dollar struggles amid improving risk appetite and a dovish Fed outlook. Traders keenly await the preliminary PMI data from the Eurozone and the US for fresh directives.
GBP/USD
GBP/USD is defending 1.3300 in the European morning on Monday, giving up early gains. The pair shrugs off a pause in the US Dollar recovery and an upbeat mood ahead of the flash readings of the UK and US Purchasing Managers Index data due later on Monday.
USD/JPY
The Japanese Yen (JPY) extends its losses for the third consecutive session in holiday-thinned trading on Monday. This downward movement may be influenced by growing concerns that the Bank of Japan (BoJ) is not in a rush to raise interest rates.
AUD/USD
The Australian Dollar (AUD) gains ground against the US Dollar (USD) despite the weaker Purchasing Managers Index (PMI) data released on Monday. The AUD/USD pair is likely appreciating due to the People’s Bank of China (PBoC) injecting liquidity into the banking system. As close trade partners, developments in the Chinese economy can have a substantial impact on Australian markets.
NZD/USD
The NZD/USD pair trades on a stronger note near 0.6245 during the early Asian session on Monday. The pair edges higher as investors digest monetary policy decisions from the US Federal Reserve’s (Fed) sharp rate cut last week.
USD/CAD
USD/CAD remains in the positive territory, trading around 1.3560 during the Asian session on Monday. However, the US Dollar (USD) may struggle due to rising odds for further rate cuts by the US Federal Reserve (Fed) in 2024. According to the CME FedWatch Tool, markets are pricing in a 50% chance of a 50 basis point rate cut to a range of 4.0-4.25% by the end of this year.
USD/CHF
The USD/CHF pair trades on a softer note around 0.8465 on Monday during the early European session. The Greenback remains under some selling pressure after the Federal Reserve’s (Fed) oversized interest rate cut on Wednesday.
CRUDE OIL
il prices rose on Monday, buoyed by concerns that heightened conflict in the Middle East may curtail regional supply and expectations last week’s outsized U.S. interest rate cut will support demand.
Gold price is looking to build on its two-day uptrend in Asian trades on Monday even as the US Dollar attempts a tepid recovery alongside the US Treasury bond yields in the run-up to the global preliminary business PMI data.
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