EUR/USD
The EUR/USD pair kicks off the new week on a softer note, though it lacks follow-through selling, warranting caution before positioning for an extension of the pullback from a nearly four-week high touched last Wednesday. Spot prices currently trade around the 1.1430 region, down for the third straight day, as the focus remains on the Middle East crisis.
GBP/USD
The GBP/USD pair rebounds around 30 pips from the Asian session low on Monday, snapping a two-day losing streak amid a modest US Dollar (USD) downtick. Spot prices, however, remain well below a two-month high, touched last Wednesday, as escalating US-Iran tensions and reviving hawkish US Federal Reserve (Fed) expectations help limit USD losses.
USD/JPY
The Japanese Yen (JPY) trades lower against its major currency peers, but is marginally higher against the US Dollar (USD) at around 162.35 during the early European trading session on Monday.
AUD/USD
The AUD/USD pair edges lower to around 0.6975 during the early Asian session on Monday. The Australian Dollar (AUD) extends the decline below the 0.7000 psychological level due to escalating tensions in the Middle East.
NZD/USD
The NZD/USD pair holds positive ground near 0.5855 during the early European session on Monday. The US Dollar (USD) weakens against the New Zealand Dollar (NZD) as softer US inflation data have led traders to cut bets on imminent rate hikes from the US Federal Reserve (Fed).
USD/CAD
The USD/CAD pair extends its downside to near 1.4005 during the Asian trading hours on Monday. Rising crude oil prices provide some support to the commodity-linked Canadian Dollar (CAD) against the US Dollar (USD). Traders brace for the release of Canada’s Consumer Price Index (CPI) inflation data later on Monday.
USD/CHF
USD/CHF extends its gains for the second successive day, trading around 0.8070 during the Asian hours on Monday. The pair depreciates as the Swiss Franc (CHF) receives support ahead of the release of Trade Balance data for June.
CRUDE OIL
Oil prices jumped 3% on Monday, with Brent surpassing $90 a barrel, as the United States and Iran expanded attacks in the Middle East that have curbed energy shipments in the Strait of Hormuz.
Gold (XAU/USD) reverses a modest Asian session dip to the $3,983-$3,982 area and is now looking to build on Friday’s bounce from the monthly low. The intraday uptick is sponsored by a softer US Dollar (USD), which tends to benefit the commodity. That said, rising geopolitical tensions and expectations of higher US interest rates favor the USD bulls, warranting caution before positioning for any meaningful appreciation for the non-yielding bullion.
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