EUR/USD
EUR/USD stays strongly bid above 1.0500 in the European morning on Monday. The pair cheers the German Conservatives Party win in the federal election, which revives hopes for better economic outlook. The further upside could remain elusive due to a cautious market mood. Germany’s IFO data eyed.
GBP/USD
GBP/USD kicks off the new week on a positive note but remains below 1.2700 in the early European trading on Monday. Broad US Dollar weakness helps the pair regain ground but the upside appears capped as traders turn cautious ahead of speeches from several BoE policymakers.
USD/JPY
The Japanese Yen (JPY) remains on the back foot against its American counterpart through the early European session, though it remains close to the highest level since early December touched earlier this Monday. Bank of Japan (BoJ) Governor Kazuo Ueda showed readiness to ramp up government bond buying if long-term interest rates rise sharply. This leads to a further pullback in the Japanese government bond (JGB) yields, which prompts some intraday JPY selling and assists the USD/JPY pair to reverse an intraday dip to sub-149.00 levels.
AUD/USD
The Australian Dollar (AUD) retraces its recent losses from the previous session on Monday following the Chinese government’s release of its annual policy statement for 2025 on Sunday. The statement details strategies to advance rural reforms and promote comprehensive rural revitalization. Optimism around China’s stimulus plans could strengthen the AUD, given China’s role as a key trading partner for Australia.
NZD/USD
The NZD/USD pair gains momentum to around 0.5760 during the early European session on Monday. The New Zealand Dollar (NZD) attracts some buyers after the Chinese government announced its annual policy statement for 2025 on Sunday. Later on Monday, the Chicago Fed National Activity Index for January will be released.
USD/CAD
USD/CAD offers its recent gains registered in the previous session, trading around 1.4190 during the Asian hours on Monday. The downside of the pair is attributed to the weaker US Dollar (USD) following the downbeat US economic data including Jobless Claims and the S&P Global Purchasing Managers’ Index (PMI) released last week.
USD/CHF
The USD/CHF pair extends its losses for the third successive session, trading around 0.8960 during the Asian hours on Monday.
CRUDE OIL
Oil prices slipped in Asia on Monday, extending losses from last week, on the prospect of a resumption of exports from Kurdistan’s oilfields, while investors awaited clarity on talks to resolve Russia’s war on Ukraine.
Gold price continues to draw support from persistent worries about Trump’s tariff plans. The emergence of fresh USD selling and inflation concerns also underpin the XAU/USD. Hawkish Fed expectations keep a lid on further gains for the non-yielding yellow metal.
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