EUR/USD
The EUR/USD pair trades with caution around 1.1670 during the Asian trading session on Monday. The major currency pair faces selling pressure as the Euro slightly underperforms its peers, following the imposition of 30% tariffs by US President Donald Trump on imports from the European Union, which will become effective from the August 1.
GBP/USD
The GBP/USD pair enters a bearish consolidation phase during the Asian session and oscillates in a narrow band around the 1.3500 psychological mark, just a few pips above a three-week low touched on Friday. Moreover, the fundamental backdrop suggests that the path of least resistance for spot prices remains to the downside.
USD/JPY
The Japanese Yen (JPY) languishes near a three-week low against its American counterpart during the Asian session on Monday and seems vulnerable amid a combination of negative factors. Investors remain worried about the potential economic fallout from higher US tariffs. This, along with declining real wages and signs of cooling inflation in Japan, should allow the Bank of Japan (BoJ) to forgo rate hikes in 2025. Apart from this, domestic political uncertainty continues to undermine the JPY.
AUD/USD
The Australian Dollar (AUD) fell against the US Dollar (USD) on Monday, following China’s trade balance data. Additionally, the AUD/USD pair may further lose ground as the US Dollar may regain its ground amid renewed market caution surrounding the Federal Reserve (Fed) policy outlook, driven by the cautious remarks from the Fed’s members.
NZD/USD
The NZD/USD pair attracts sellers for the second consecutive day on Monday and slides further below the 0.6000 psychological mark during the Asian session. Spot prices currently trade near the 0.5980-0.5975 support, or the monthly low touched last week, and seem vulnerable amid rising trade tensions.
USD/CAD
The USD/CAD pair posts modest gains near 1.3690 during the Asian trading hours on Monday. The Canadian Dollar (CAD) edges lower against the Greenback as US President Donald Trump intensifies the trade war with fresh tariffs on the European Union (EU) and Mexico. The Canadian June Consumer Price Index (CPI) inflation data will be in the spotlight later on Tuesday.
USD/CHF
USD/CHF remains subdued for the second successive session, trading around 0.7970 during the Asian hours on Monday. The pair struggled as the Swiss Franc (CHF) receives support from increased safe-haven demand amid ongoing global trade uncertainties, driven uncertain tariff concerns. Swiss Producer and Import Prices data for June will be eyed later in the day.
CRUDE OIL
Oil prices nudged higher on Monday, adding to gains of more than 2% from Friday, as investors eyed further U.S. sanctions on Russia that may affect global supplies, but a ramp-up in Saudi output and ongoing tariff uncertainty limited gains.
Gold price eases from a multi-week top, though the downside potential seems limited. Reduced Fed rate cut bets underpin the USD and act as a headwind for the commodity. Rising trade tensions should limit any further losses for the safe-haven precious metal.
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