EUR/USD
The EUR/USD pair trades with a negative bias for the second straight day on Monday as diminishing odds for another rate cut by the US Federal Reserve (Fed) provide a modest lift to the US Dollar (USD). Spot prices retreat further from an over two-week high touched last Thursday, with bears awaiting a sustained break and acceptance below the 1.1600 mark before positioning for deeper losses.
GBP/USD
The GBP/USD pair declines to near 1.3155 during the early Asian session on Monday. The Pound Sterling (GBP) softens against the US Dollar (USD) amid concerns about the UK’s fiscal debt and weak economic data from the UK. Bank of England (BoE) External Member Catherine Mann is set to speak later on Monday.
USD/JPY
The Japanese Yen (JPY) sticks to its offered tone against a broadly firmer US Dollar (USD) through the early European session on Monday and remains close to a nine-month low touched last week. Government data released earlier today showed that Japan’s economy contracted in the July-September period for the first time in six quarters. This comes amid Japan’s Prime Minister Sanae Takaichi’s fiscal stimulus plans and support for ultra-loose monetary policy, dampening bets for a Bank of Japan (BoJ) rate hike and undermining the JPY. The USD, on the other hand, benefits from reduced bets for another rate cut by the US Federal Reserve (Fed) in December and assists the USD/JPY pair in holding steady above the 154.45-154.50 supply zone.
AUD/USD
AUD/USD trades higher on Friday around 0.6550 at the time of writing, up 0.30% on the day, supported by renewed demand for the Australian Dollar (AUD) following solid economic releases from Australia and China, while uncertainty persists around the US Dollar (USD).
NZD/USD
The NZD/USD pair kicks off the new week on a subdued note and oscillates in a narrow band around the 0.5670-0.5675 region during the Asian session. Spot prices, however, remain close to a one-and-a-half-week high, around the 0.5700 neighborhood, touched on Friday amid mixed cues.
USD/CAD
USD/CAD edges higher after registering modest losses in the previous session, trading around 1.4030 during the Asian hours on Monday. The pair advances as the commodity-linked Canadian Dollar (CAD) struggles amid lower crude Oil prices.
USD/CHF
USD/CHF continues to gain ground for the second successive session, trading around 0.7950 during the Asian hours on Monday. The pair appreciates as the US Dollar (USD) gains amid diminishing likelihood of a Federal Reserve (Fed) interest rate cut in December. Traders are preparing for a wave of delayed United States (US) economic data after the government’s reopening, looking for clearer signals on Federal Reserve (Fed) policy.
CRUDE OIL
Oil prices fell on Monday, erasing last week’s gains, as loadings resumed at the key Russian export hub of Novorossiysk after a two-day suspension at the Black Sea port that had been hit by a Ukrainian attack.
Gold (XAU/USD) struggles to find acceptance above the $4,200 round figure and surrenders a major par to its modest intraday gains heading into the European session on Friday. A growing number of Federal Reserve (Fed) policymakers signaled caution on further easing amid the lack of economic data, prompting traders to trim their bets for another rate cut in December. This, in turn, is seen as a key factor acting as a headwind for the non-yielding yellow metal.
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