EUR/USD
EUR/USD edges lower and continues its losing streak for the fourth successive session, trading around 1.1530 during the Asian hours on Monday. The pair remains subdued as the US Dollar (USD) receives support from dampening expectations for a December rate cut by the US Federal Reserve (Fed), following the central bank’s decision to lower its benchmark overnight borrowing rate for the second time this year to a range of 3.75%-4.0%.
GBP/USD
The GBP/USD pair remains depressed below mid-1.3100s at the start of a new week and languishes near its lowest level since April 14, touched on Friday. Meanwhile, the fundamental backdrop seems tilted in favor of bearish traders and backs the case for an extension of the recent well-established downtrend witnessed over the past one-and-a-half month or so.
USD/JPY
The USD/JPY pair trades with mild gains near 154.05 during the early Asian session on Monday. The Japanese Yen (JPY) softens against the US Dollar (USD) as the Bank of Japan (BoJ) disappointed traders hoping for a more hawkish stance on future rate hikes. The US ISM Manufacturing Purchasing Managers Index (PMI) report is due later on Monday.
AUD/USD
Australian Dollar (AUD) advances against the US Dollar (USD), halting its three-day losing streak on Monday. The AUD/USD pair may continue to lose ground as the US Dollar (USD) gains amid dampening expectations of a US Federal Reserve (Fed) interest rate cut in December.
NZD/USD
The NZD/USD pair trades on a flat note near 0.5715 during the Asian trading hours on Monday. The potential upside for the New Zealand Dollar (NZD) seems limited after the downbeat China’s Manufacturing Purchasing Managers’ Index (PMI) data. Traders will take more cues from the US October ISM Manufacturing PMI data later on Monday.
USD/CAD
USD/CAD remains steady after two days of gains, trading around 1.4010 during the Asian hours on Monday. The pair struggles as the Canadian Dollar (CAD) gains ground on higher Oil prices. It is important to note that Canada is the largest crude exporter to the United States (US).
USD/CHF
The USD/CHF pair demonstrates strength near an over two-week high around 0.8050 during Monday’s Asian session. The Swiss Franc pair trades firmly as the US Dollar (USD) holds onto gains due to receding speculation for further monetary policy easing by the Federal Reserve (Fed) this year.
CRUDE OIL
Turkey’s largest oil refineries are buying more non-Russian oil in response to the latest Western sanctions on Russia, two people with direct knowledge of the matter and several industry sources told Reuters.
Gold (XAU/USD) builds on its steady intraday ascent and climbs further beyond the $4,000 psychological mark during the Asian session on Monday. Comments from US President Donald Trump suggested that his administration may restrict the flow of cutting-edge artificial intelligence (AI) hardware to its strategic rival, China. This turns out to be a key factor that provides a modest lift to the safe-haven precious metal. Apart from this, concerns about economic risks stemming from a prolonged US government shutdown further seem to underpin the commodity.
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