EUR/USD
The EUR/USD pair struggles to capitalize on Friday’s modest rebound from the 1.1125-1.1120 support area and kicks off the new week on a subdued note. Spot prices currently trade around the 1.1160 area, nearly unchanged for the day, as traders keenly await the release of the flash German consumer inflation figures and the Federal Reserve (Fed) Chair Jerome Powell’s speech for some fresh impetus.
GBP/USD
The GBP/USD pair holds positive ground near 1.3385 during the early Asian session on Monday. Expectations of further interest rate cuts by the Federal Reserve (Fed) and the less dovish stance of the Bank of England’s (BoE) less dovish rate cut bets provide some support to the major pair. Fed Governor Michelle Bowman is scheduled to speak later on Monday.
USD/JPY
USD/JPY is trading at around 142.50 in Asian trading on Monday after facing rejection at 143.00. Negative Japanese equities drag the pair, as markets speculate about Japan’s snap election. However, mixed Japanese data and China stocks rally cap the pair’s downside.
AUD/USD
AUD/USD is paring back gains below the multi-month highs of 0.6937 in the Asian session on Monday. The mostly downbeat business PMI reports from China’s NBS and Caixin hit the sentiment around the Aussie amid a risk-rally in Chinese stocks on more stimulus measures to spur the economy.
NZD/USD
The NZD/USD pair attracts some buyers for the third successive day and climbs to a fresh year-to-date (YTD) peak, around the 0.6375 region during the Asian session on Monday.
USD/CAD
The USD/CAD pair kicks off the new week on a subdued note and oscillates in a narrow band, above the 1.3500 psychological mark through the Asian session. The mixed fundamental backdrop, meanwhile, warrants some caution before positioning for a firm near-term direction and extension of the pair’s goodish rebound from the 1.3420 area, or the lowest level since March 8 touched last week.
USD/CHF
The USD/CHF pair attracts some buyers to around 0.8485 on Monday during the early European session. The Swiss Franc (CHF) weakens after the Swiss National Bank (SNB) reduced interest rates on Friday.
CRUDE OIL
Oil prices extended gains on Monday, buoyed by escalating concerns over potential supply pressures from Middle East producers following Israel’s increased attacks on Iranian-backed forces in the region.
Gold price attracts some sellers for the second straight day, though the downside seems limited. The optimism over China’s stimulus measures drives some haven flows away from the XAU/USD. Geopolitical risks and bets for a more aggressive policy easing by the Fed could limit losses for the precious metal.
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