EUR/USD
The EUR/USD pair kicks off the new week on a subdued note and consolidates last week’s heavy losses to its lowest level since mid-August touched in the aftermath of the upbeat US employment details on Friday. Spot prices currently trade around the 1.0975 region and seem vulnerable to prolong the recent sharp pullback from a 14-month top – levels just above the 1.1200 mark.
GBP/USD
The GBP/USD pair posts modest gains to near 1.3130, snapping the three-day losing streak during the early Asian session on Monday. However, the upside of the major pair might be limited amid the reduced bets of the Federal Reserve interest rate cuts after the upbeat US Nonfarm Payrolls (NFP) on Friday.
USD/JPY
USD/JPY stalls its bounce and remains in the red at around 148.50 in Monday’s Asian session. Japanese verbal intervention continues to outweigh reduced bets for more BoJ rate hikes and a risk-on market mood, keeping the pair undermined. Fedspeak is next on tap.
AUD/USD
AUD/USD holds mild gains above 0.6800 in Asian trading on Monday, snapping a two-day losing streak. The pair benefits from expectations of more Chinese stimulus, which lifting risk sentiment and weighs on the safe-haven US Dollar. The focus shifts to Fedspeak and RBA Minutes.
NZD/USD
NZD/USD extends its losing streak, trading around 0.6200 during the early European hours on Monday. This downside of the pair could be attributed to dovish sentiment surrounding the Reserve Bank of New Zealand’s (RBNZ) monetary policy stance this week. RBNZ is widely expected to deliver a 50 basis point interest rate cut amid concerns over weak economic growth and rising unemployment.
USD/CAD
The USD/CAD pair oscillates in a narrow range, around the 1.3580 region on the first day of a new week and is currently placed just below a two-week high touched on Friday.
USD/CHF
USD/CHF decisively breaks out of the top of its multi-week range, probably ending its protracted sideways market trend. A close clearly above 0.8540 and the range ceiling would cement bullish expectations.
CRUDE OIL
Oil prices fell in Asian trade on Monday, retreating after a flare-up in Middle East tensions sparked their biggest weekly gain in over a year, with focus squarely on the long-running Israel-Hamas war.
Gold price remains on the defensive amid reduced bets for a 50 bps Fed rate cut in November. The USD consolidates last week’s strong gains and also contributes to capping the XAU/USD. Geopolitical risks might continue to act as a tailwind and limit losses for the precious metal.
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