EUR/USD is posting small gains while defending 1.0950 in early Europe on Monday. A broadly softer US Dollar and cautious optimism lend support to the pair. Due to the lack of top-tier economic data and a holiday in the US, risk sentiment is set to play a pivotal role ahead.
GBP/USD is treading water near 1.2750 in the European morning on Monday. The US Dollar stays defensive due to weaker US bond yields and holiday-thinned market conditions. Mounting UK recession risks and geopolitical tensions cap the pair’s upside.
The USD/JPY pair gained traction above the 145.00 mark during the early Asian session on Monday. The pair rebounds despite the decline of the US Dollar (USD). The market is likely to have a quiet session amid the US bank holiday. At press time, USD/JPY is trading at 145.06, up 0.12% for the day.
The AUD/USD pair kicks off the new week on a positive note during the early Asian session on Monday. The weaker-than-expected US Producer Price Index (PPI) data on Friday has dragged the US Dollar lower and has lifted AUD/USD. The market is likely to be quiet in terms of US economic data due to a long weekend for the US, with Martin Luther King Jr Day on Monday. The pair currently trades near 0.6687, gaining 0.06% on the day.
NZD/USD snaps its two-day winning streak as market sentiment shifts to risk-averse on escalated geopolitical tension in the Middle East. The NZD/USD pair trades lower near 0.6230 during the Asian session on Monday. However, the softer Producer Price Index (PPI) data reinforces market sentiment regarding the possibility of the Federal Reserve (Fed) initiating monetary policy easing. This sentiment has contributed to a weakening of US bond yields, subsequently putting downward pressure on the US Dollar (USD).
The USD/CAD pair remains capped under the 1.3400 mark during the early European trading hours on Monday. The downtick of the pair is backed by the decline of the US Dollar (USD) and the weaker US Producer Price Index (PPI) report. The pair currently trades around 1.3391, gaining 0.19% on the day.
The USD/CHF pair currently trades at 0.8529. The firmer US Dollar (USD) following the upbeat US inflation data might lend some support to the pair. However, the upside of USD/CHF might be limited due to the escalating tension in the Middle East.
Oil prices edged up on Monday as traders watched for supply disruption risks in the Middle East following strikes by U.S. and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea.
Gold prices continue to advance for the third consecutive day on Monday, trading higher and reaching around $2,055 per troy ounce. The upward movement in the price of the yellow metal is attributed to the risk-averse due to the geopolitical tensions in the Middle East.
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