EUR/USD
The EUR/USD pair kicks off the new week on a weaker note amid a modest US Dollar (USD) uptick, bolstered by the optimism over a US-China trade deal. Spot prices, however, manage to hold above the 1.1200 mark and a one-month low touched last Thursday as traders await the US-China joint statement for more details about the agreement.
GBP/USD
GBP/USD attracts some sellers as the US-China trade deal eases US recession fears and boosts the USD. The US-UK trade agreement and the BoE’s cautious tone support the GBP and limit losses for the major. Traders now look forward to speeches from BoE officials and FOMC members for some meaningful impetus.
USD/JPY
The Japanese Yen (JPY) remains on the back foot against its American counterpart through the Asian session on Monday as the latest optimism over the US-China trade deal continues to undermine safe-haven assets. Apart from this, worries about Japan’s growth outlook on the back of US tariffs uncertainty seem to weigh on the JPY. The US Dollar (USD), on the other hand, holds steady near a multi-week top amid the Federal Reserve’s (Fed) hawkish pause and easing concerns about a recession in the US, which further acts as a tailwind for the USD/JPY pair.
AUD/USD
The Australian Dollar (AUD) is building on its recent momentum, rising against the US Dollar (USD) for a second straight session on Monday. The AUD/USD pair is benefiting from growing optimism around the US-China trade talks held in Geneva. As Australia maintains strong economic ties with China, developments in the Chinese economy often have a direct influence on the AUD.
NZD/USD
The NZD/USD pair gains traction to near 0.5925 during the Asian trading hours on Monday. The New Zealand Dollar (NZD) strengthens against the Greenback amid easing concerns over a trade war between the United States and China. Investors will closely monitor the joint statement from the world’s two biggest economies on the Geneva trade talks.
USD/CAD
USD/CAD is attempting to hold its position for the fourth consecutive session, hovering around 1.3940 during Monday’s Asian trading hours. The pair remains supported as the US Dollar (USD) gains strength following reported progress in US-China trade talks over the weekend in Switzerland.
USD/CHF
The USD/CHF pair is navigating a critical juncture as it trades near a key support level, with broader market sentiment clouded by trade talk uncertainties. The US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, has recently pulled back to 100.3000 after hitting a near-month high of 100.8600.
CRUDE OIL
Oil prices edged higher in Asian trading on Monday, building on last week’s sharp gains, as the U.S. announced a trade deal with China, though investors remained cautious pending further details on the agreement.
Gold price kicks off the new week on a weaker note in reaction to the optimism over the US-China trade deal. Easing US recession fears and the Fed’s hawkish pause underpin the USD, and further weigh on the commodity. The XAU/USD bears await details on the US-China agreement before positioning for any meaningful downside.
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