EUR/USD
EUR/USD recovers some of its losses from the previous session, trading near 1.0280 during Asian hours. However, the pair’s upside may remain capped as the US Dollar (USD) could strengthen due to market caution ahead of President-elect Donald Trump’s inauguration later on the day. The US market will remain closed on Monday for the Martin Luther King Jr. Day holiday.
GBP/USD
The GBP/USD pair kicks off the new week on a slightly positive note and reverses a part of Friday’s decline, though the uptick lacks follow-through or bullish conviction. Spot prices currently trade around the 1.2180 region, up less than 0.10% for the day, and remain close to the lowest level since November 2023 touched last week.
USD/JPY
USD/JPY attracts some intraday sellers and gives up 156.00 following the release of upbeat Japanese Machinery Orders data. Rising bets that the BoJ will hike rates against later this week contribute to the latest leg lower in the pair amid a steady US Dollar. Trump 2.0 also remains in focus.
AUD/USD
AUD/USD extends the bounce above 0.6200 in the Asian session on Monday. Traders remain optimistic heading into US President-elect Donald Trump’s inauguration even as the PBOC left the Loan Prime Rate unchanged. Thin trading will likely remain due to a US market holiday.
NZD/USD
The NZD/USD pair holds positive ground around 0.5600 during the Asian trading hours on Monday. The Kiwi remains strong after the People’s Bank of China (PBOC) announced to leave its Loan Prime Rates (LPRs) unchanged on Monday. The market might turn cautious as investors brace for the policy announcements ahead of President-elect Donald Trump’s inauguration.
USD/CAD
The USD/CAD pair retreated slightly after touching its highest level since March 2020 during the Asian session on Monday and for now, seems to have snapped a two-day winning streak. Spot prices currently trade around the mid-1.4400s, down 0.10% for the day amid a modest US Dollar (USD), though the downtick lacks follow-through or a bearish conviction.
USD/CHF
The USD/CHF pair edges lower to near the 0.9100 mark in Monday’s European session. The Swiss Franc pair falls marginally as the Swiss Franc (CHF) performs strongly against its major peers even though market participants expect the Swiss National Bank (SNB) to continue easing the monetary policy further.
CRUDE OIL
Oil prices were little changed on Monday as expectations of U.S. President-elect Donald Trump relaxing curbs on Russia’s energy sector in exchange for a deal to end the Ukraine war offset concern of supply disruption from harsher sanctions.
GOLD
Gold price has extended its corrective decline from monthly highs of $2,725 into early Monday. Traders will continue to cash in on their Gold-long positions heading into US President-elect Donald Trump’s inauguration and amid a Martin Luther King Jr. Day holiday in the US.
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