EUR/USD
The EUR/USD pair trades with a mild negative bias near 1.0550 on Monday during the Asian trading hours. Investors will closely monitor the US Consumer Price Index inflation report for November, which is due on Wednesday.
GBP/USD
The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow trading band, below mid-1.2700s during the Asian session. Spot prices remain within striking distance of over a three-week high, levels above the 1.2800 mark, touched on Friday, though the fundamental backdrop warrants some caution for bullish traders.
USD/JPY
The Japanese Yen (JPY) continues with its struggle to gain any meaningful traction and extends the consolidative price move against its American counterpart during the Asian session on Monday. Despite an upward revision of Japan’s GDP print for the third quarter, doubts over whether the Bank of Japan (BoJ) will hike interest rates further in December turns out to be a key factor acting as a headwind for the JPY. This, along with a modest US Dollar (USD) uptick, lends some support to the USD/JPY pair.
AUD/USD
The AUD/USD pair gains ground to around 0.6400 on the weaker US Dollar (USD) during the Asian session on Monday. There are no Federal Reserve (Fed) speakers this week due to the media blackout. All eyes will be on the Reserve Bank of Australia (RBA) interest rate decision on Tuesday, with no change in rates expected.
NZD/USD
The NZD/USD pair faces some selling pressure to around 0.5805 during the early European session on Monday. The renewed US Dollar (USD) demand and discouraging Chinese consumer inflation undermine the pair. The US November Consumer Price Index (CPI) report will be the highlight on Wednesday.
USD/CAD
The USD/CAD pair advances to near the 1.4100 mark after the release of the labor market data for November from both economies: the United States (US) and Canada on Friday. The US Nonfarm Payrolls (NFP) report showed that 227K fresh workers were added to the labor force, higher than estimates of 200K. The Unemployment Rate accelerated to 4.2%, as expected, higher than the former release of 4.1%.
USD/CHF
The USD/CHF pair flat lines around 0.8860 on Monday during the early European trading hours. . Expectations for a less dovish Fed underpin the USD and cap gains for the swiss franc.
CRUDE OIL
Oil prices climbed on Monday after the fall of Syrian President Bashar al-Assad’s regime introduced greater uncertainty to the Middle East, although the gains were capped by a waning demand outlook for the coming year.
GOLD
Gold price ticks higher on Monday amid bets for another Fed rate cut in December. Geopolitical tensions and trade war fears further benefit the safe-haven commodity. Expectations for a less dovish Fed underpin the USD and cap gains for the XAU/USD.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
