EUR/USD
The EUR/USD pair trades with a mild negative bias below mid-1.1500s through the Asian session on Monday amid a modest US Dollar uptick, though it lacks bearish conviction. Traders now look to the crucial FOMC policy decision on Wednesday before placing fresh directional bets.
GBP/USD
The GBP/USD pair has recovered its daily losses, trading around 1.3570 during the Asian hours on Monday. The bullish bias may weaken as the daily chart’s technical analysis indicates that the pair is hovering around the ascending channel pattern.
USD/JPY
The Japanese Yen (JPY) recovers modest Asian session losses against a broadly weaker US Dollar (USD), dragging the USD/JPY pair back to the 144.00 mark, or the lower end of the daily range in the last hour. The growing acceptance that the Bank of Japan (BoJ) will stick to the path toward policy normalization amid the broadening inflation continues to act as a tailwind for the JPY. Apart from this, a further escalation of geopolitical tensions in the Middle East turns out to be another factor lending support to the safe-haven JPY.
AUD/USD
The Australian Dollar (AUD) recovers its daily losses against the US Dollar (USD) as the risk sentiment improves, driven by Israel’s revised proposal in hostage negotiations with Hamas, which could lead to a temporary ceasefire. However, the AUD/USD pair faced challenges due to escalating tensions in the Middle East.
NZD/USD
NZD/USD holds gains following the release of mixed economic data from China, trading around 0.6020 during the Asian hours on Monday. The National Bureau of Statistics (NBS) reported that China’s Retail Sales rose 6.4% year-over-year in May, surpassing the 5.0% expected and April’s 5.1% increase. Meanwhile, Industrial Production increased 5.8% YoY but below the 5.9% forecast and 6.1% prior.
USD/CAD
USD/CAD is trading around 1.3600 during the Asian hours on Monday after rebounding from eight-month low of 1.3566, which was recorded on June 13. The pair gains ground as the commodity-linked Canadian Dollar (CAD) faces challenges due to a decline in the crude Oil prices. This is important to note that Canada is the largest crude supplier to the United States (US), the largest Oil consumer.
USD/CHF
The USD/CHF pair gathers strength to around 0.8125 during the early European session on Monday, bolstered by the rebound in the US Dollar (USD). Investors await the Swiss May Producer and Import Prices and SECO Economic Forecasts, which will be published later on Monday.
CRUDE OIL
Oil prices were volatile on Monday, after surging 7% on Friday, as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.
Gold price struggles to capitalize on the Asian session uptick to a two-month high. A positive risk tone and a modest USD uptick acted as a headwind for the XAU/USD pair. Trade uncertainties and geopolitical risks should limit losses for the precious metal ahead of the FOMC meeting.
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