EUR/USD
EUR/USD retraces its recent gains registered in the previous session, trading around 1.1720 during the Asian hours on Monday. The downside of the pair could be limited as the US Dollar may struggle amid the rising likelihood of the US Federal Reserve rate cuts in the upcoming meetings.
GBP/USD
The Pound Sterling (GBP) recovery from seven-week lows against the US Dollar (USD) lost legs, sending GBP/USD back below the 1.3500 threshold. Amid cautious remarks by the Bank of England (BoE) policymakers and a broad-based US Dollar downside, the GBP/USD pair staged an impressive turnaround from the 1.3330 region to briefly regain 1.3500 before facing some headwinds above the latter in the second half of the week.
USD/JPY
USDJPY builds on its bullish opening gap on Monday in reaction to the outcome of Japan’s ruling LDP leadership election, which positions Sanae Takaichi to become the first female Prime Minister. Takaichi is considered to have the most expansionist fiscal and monetary agenda. This raises the chance that the BoJ could delay raising interest rates, weighing heavily on the Japanese Yen.
AUD/USD
The Australian Dollar (AUD) gains ground against the US Dollar (USD) following the release of the TD-MI Inflation Gauge data, suggesting that inflation may come in hotter than anticipated in the third quarter, despite the Reserve Bank of Australia’s (RBA) efforts to keep inflation within its 2–3% target range.
NZD/USD
The NZD/USD pair trades on a positive note around 0.5825 during the early Asian session on Monday. The fears of a prolonged US government shutdown continue to drag the US Dollar (USD) lower against the New Zealand Dollar (NZD). Traders await the release of FOMC Minutes later on Wednesday for fresh impetus.
USD/CAD
USD/CAD remains subdued for the second successive session, trading around 1.3950 during the Asian hours on Monday. The pair depreciates as the commodity-linked Canadian Dollar (CAD) gains ground amid higher Oil prices. It is worth noting that Canada is the largest Oil exporter to the United States (US).
USD/CHF
The USD/CHF pair edges down to near 0.7955 during the late Asian trading session on Monday. The Swiss Franc pair faces slight selling pressure even as the US Dollar (USD) recovers firmly, suggesting significant strength in the Swiss Franc (CHF).
CRUDE OIL
Oil prices rose around 1% on Monday after OPEC+’s planned production increase for November was more modest than expected, tempering some concerns about supply additions, though a soft outlook for demand is likely to cap near-term gains.
Gold (XAU/USD) surges past the $3,900 round figure during the Asian session on Monday, hitting a fresh record high amid the growing acceptance for additional interest rate cuts by the US Federal Reserve (Fed). Furthermore, the ongoing US government shutdown also keeps demand for safe-haven bullion in play on the back of rising trade and geopolitical tensions. Meanwhile, a fiscal dove Sanae Takaichi was elected as the leader of Japan’s ruling Liberal Democratic Party (LDP) and became the next Prime Minister. This raises the chance that the Bank of Japan (BoJ) would delay raising interest rates further and turns out to be another factor driving flows towards the non-yielding yellow metal.
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