EUR/USD
The EUR/USD pair trades flat around 1.1600 during the early European trading session on Monday. The major currency pair consolidates as investors await the Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for November, which will be released on Tuesday.
GBP/USD
The GBP/USD pair trades on a softer note around 1.3225 during the early European session on Monday. Rising bets of a Federal Reserve (Fed) rate cut in December might weigh on the Greenback and cap the downside for the major pair. Traders are now pricing in an 87% odds the Fed will cut by 25 basis points (bps) when it meets next week, according to the CME FedWatch tool.
USD/JPY
The USD/JPY pair posts modest losses near 156.10 during the early Asian session on Monday. Traders raise bets that the US Federal Reserve (Fed) will cut interest rates again at the December policy meeting, which weighs on the US Dollar (USD) against the Japanese Yen (JPY). Later on Monday, the Bank of Japan’s (BoJ) Governor Kazuo Ueda is set to speak. Also, the US ISM Manufacturing Purchasing Managers Index (PMI) report for November will be published.
AUD/USD
The AUD/USD pair loses ground to around 0.6540, snapping the six-day winning streak during the early European session on Monday. The Australian Dollar (AUD) retreats from two-week highs against the Greenback following the weaker-than-expected Chinese economic data.
NZD/USD
The NZD/USD pair is seen oscillating in a narrow range at the start of a new week and consolidating its recent strong gains to a nearly one-month peak, touched on Friday. Spot prices hold steady below mid-0.5700s and react little to the disappointing Chinese data.
USD/CAD
The USD/CAD pair recovers some lost ground to around 1.3980 during the Asian trading hours on Monday. The potential upside might be limited amid rising bets of a US Federal Reserve (Fed) rate cut this month. Traders brace for the US November ISM Manufacturing Purchasing Managers Index (PMI) report later on Monday for fresh impetus.
USD/CHF
USD/CHF trades slightly higher on Monday, around 0.8060, up 0.15% at the time of writing. The pair remains on track for a weekly gain, supported by the persistent weakness of the US Dollar (USD) amid growing expectations of interest rate cuts by the Federal Reserve (Fed).
CRUDE OIL
Oil prices rose more than 1% in Asian trading on Monday, supported by OPEC+’s reaffirmation to hold output steady during the first quarter, and by renewed supply concerns stemming from geopolitical tensions.
Gold (XAU/USD) seesaws between tepid gains/minor losses heading into the European session and currently trades just below its highest level since October 21, touched earlier this Monday. The recent dovish remarks from several Federal Reserve (Fed) officials reaffirmed market expectations for another interest rate cut by the US central bank in December. This has been a key factor behind a one-week-old US Dollar (USD) downtrend and continues to act as a tailwind for the non-yielding yellow metal.
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