EUR/USD
EUR/USD starts the week on a positive note, edging higher to trade around 1.1090 during the Asian session on Monday. Investors are now focused on the highly-anticipated policy decision from the US Federal Reserve (Fed) later this week. Markets remain divided on whether the Fed will cut rates by 25 basis points (bps) or 50 bps.
GBP/USD
The GBP/USD pair attracts some dip-buying on the first day of a new week amid relatively thin trading conditions on the back of a holiday in China and Japan. Spot prices currently trade around the 1.3135-1.3140 region, up just over 0.10% for the day and remain close to a one-week high touched on Friday amid the prevalent US Dollar (USD) selling bias.
USD/JPY
The USD/JPY pair remains depressed around mid-140.00s during the Asian session on Monday, amid thin trading volumes on the back of a holiday in Japan. However, bearish traders might prefer to wait for this week’s key central bank event risks before positioning for any further depreciating move.
AUD/USD
The Australian Dollar inches higher against the US Dollar on Monday. The AUD/USD pair may appreciate further due to growing speculation that the US Federal Reserve will opt for a jumbo 50 basis points rate cut at this week’s monetary policy meeting.
NZD/USD
NZD/USD holds its position following the recent losses from the previous session, trading around 0.6160 during the Asian hours on Monday. Traders are digesting data showing a slight improvement in business activity in New Zealand.
USD/CAD
The USD/CAD pair loses traction near 1.3575 during the Asian trading hours on Monday, pressured by a softer US Dollar (USD). The Federal Reserve (Fed) interest rate decision will take center stage on Wednesday. Investors will monitor how aggressively the US central bank will bring down interest rates.
USD/CHF
USD/CHF extends its losses for the second successive day, trading around 0.8490 during the Asian hours on Monday. The decline of the USD/CHF pair could be attributed to the subdued US Dollar (USD) following Thursday’s economic data from the United States.
CRUDE OIL
Oil prices rose slightly in Asian trade on Monday, benefiting from a softer dollar as traders positioned for an interest rate cut by the Federal Reserve later this week.
GOLD
Gold price trades with a mild positive bias near the all-time peak touched on Friday. Rising bets for a 50 bps Fed rate cut later this month continue to act as a tailwind. Bulls now await this week’s key central bank event risks before placing fresh bets.
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