EUR/USD
EUR/USD consolidates the previous week’s impressive gains and holds steady above 1.0800 in the European session on Monday. The data from Germany showed that Industrial Production grew at a stronger pace than expected in January but failed to trigger a market reaction.
GBP/USD
GBP/USD is treading water above 1.2900 in European trading on Monday, lacking a bullish impetus. The pair is undermined by US tariffs uncertainty-led risk-off flows and a pause in the US Dollar downtrend. All eyes remain on Trump’s tariff updates amid a data-quiet calendar.
USD/JPY
The Japanese Yen (JPY) sticks to its positive bias against a broadly weaker US Dollar (USD) through the early European session on Monday amid hawkish Bank of Japan (BoJ) expectations. Traders seem convinced that the BoJ will hike interest rates again and the bets were reaffirmed by data released earlier today, which showed that real cash earnings fell 1.8% on the back of persistent inflation. Adding to this, growing confidence that bumper wage hikes seen last year will continue this year backs the case for further policy tightening by the BoJ, which continues to push Japanese government bond (JGB) yields higher. The resultant narrowing of the rate differential in Japan and other countries benefits the lower-yielding JPY.
AUD/USD
The Australian Dollar (AUD) rebounded on Monday, recovering losses from the previous two sessions against the US Dollar (USD). The AUD/USD pair’s upward movement was primarily driven by concerns over a potential slowdown in the US economy.
NZD/USD
NZD/USD gains ground after registering losses in the previous session, trading around 0.5730 during the early European hours on Monday. However, the upside of the NZD/USD pair could be limited as rising global trade tensions dampened investors’ risk appetite.
USD/CAD
USD/CAD remains steady after registering gains in the previous session, trading around 1.4360 during the Asian hours on Monday. The Canadian Dollar (CAD) may face headwinds due to ongoing trade uncertainties.
USD/CHF
The USD/CHF pair extends the decline to around 0.8820 during the early European session on Monday, pressured by the weaker US Dollar (USD). The markets turn cautious amid an escalating trade war initiated by the United States.
CRUDE OIL
Oil prices fell on Monday as concern about the impact of U.S. import tariffs on global economic growth and fuel demand, as well as rising output from OPEC+ producers, cooled investor appetite for riskier assets.
Gold price extends its sideways consolidative price move and holds steady above the $2,900 mark through the early European session on Monday. Investors remain worried about the potential economic fallout from US President Donald Trump’s trade tariffs and a global trade war, which continues to act as a tailwind for the safe-haven bullion.
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