EUR/USD
EUR/USD stays defensive above 1.0700 in European trading on Monday. The pair reamins undermined by the German political risks and a sustained US Dollar strength, as traders brace for the key US inflation data later this week. US holiday-led thin trading is likely to extend.
GBP/USD
GBP/USD weakens to near 1.2900 in the European session on Monday. A broadly firmer US Dollar, following Donald Trump’s US election win, continues to weigh on the pair alongside resurfacing China’s economic woes and pre-US inflation report market nervousness.
USD/JPY
The Japanese Yen (JPY) extends its steady intraday descent during the Asian session on Monday and has now reversed a part of its recovery gains registered against its American counterpart over the past two days. The Bank of Japan’s (BoJ) Summary of Opinions from the October meeting showed that policymakers were divided on rate hike timing. This comes on top of the political uncertainty in Japan, which raises doubts about the BoJ’s ability to tighten its monetary policy further and undermines the JPY.
AUD/USD
The Australian Dollar (AUD) edged higher against the US Dollar (USD) on Monday despite a generally negative outlook driven by concerns over Donald Trump’s proposed tariff increases on Chinese goods, which could impact Australian markets, one of China’s largest trading partners. US markets will be closed for the Veteran’s Day Bank Holiday.
NZD/USD
The NZD/USD pair rebounds to around 0.5965 on Monday during the Asian trading hours. The pair edges higher after an uptick in the Reserve Bank of New Zealand’s (RBNZ) inflation expectations. However, the renewed Greenback demand due to the return of Donald Trump to the White House might drag NZD/USD lower. The attention will shift to the US October Consumer Price Index (CPI), which is due on Wednesday.
USD/CAD
USD/CAD seems to extend its gains as US Dollar (USD) appreciates as traders anticipate a less dovish stance from the Federal Reserve (Fed), as Donald Trump is likely to pursue his campaign promises to enact substantial tariffs, including a 10% increase on imports and a reduction in corporate taxes. The USD/CAD pair trades around 1.3920 during the Asian session on Monday.
USD/CHF
The USD/CHF pair drifts higher to around 0.8730 during the early European session on Friday. The renewed Greenback demand provides some support to the pair. Traders brace for the advanced US Michigan Consumer Sentiment data for November and the speech from the Federal Reserve’s (Fed) Michelle Bowman later on Friday.
CRUDE OIL
Oil prices extended declines on Monday (NASDAQ:MNDY) as the threat of a supply disruption from a U.S. storm eased and after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s No. 2 oil consumer.
GOLD
Gold price drifts lower for the second straight day and is pressured by a combination of factors. The Trump trade optimism continues to underpin the USD and weighs on the precious metal. A positive risk tone also undermines the safe-haven XAU/USD despite more Fed rate cut bets.
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