EUR/USD
The EUR/USD pair recovers a few pips after retesting a one-week low earlier this Monday and holds steady around the 1.1500 psychological mark during the Asian session. The upside, however, seems limited as rising geopolitical tensions might continue to benefit the safe-haven US Dollar and act as a headwind for spot prices.
GBP/USD
GBP/USD inches higher after four days of losses, trading around 1.3270 during the Asian hours on Monday. The technical analysis of the daily chart indicates a persistent bearish bias, as the pair remains within the descending channel pattern.
USD/JPY
The USD/JPY pair retreats sharply from the vicinity of mid-160.00s, or a fresh high since July 2024, touched during the Asian session on Monday, and for now, seems to have snapped a four-day winning streak. Spot prices drop to a fresh daily trough, around the 159.70-159.65 region in the last hour, though the downside potential seems limited.
AUD/USD
The AUD/USD pair is down 0.3% around 0.6850 during the Asian trade at the start of the week. The Aussie pair faces selling pressure as risk-off impulse, driven by fears of escalating conflicts in the Middle East, is acting as a key drag on the Australian Dollar (AUD).
NZD/USD
NZD/USD extends its losing streak for the fifth successive day, trading around 0.5730 during the Asian hours on Monday. The pair depreciates as risk aversion intensifies amid fears of a potential United States (US) ground invasion in Iran.
USD/CAD
The USD/CAD pair extends its winning streak for the sixth trading day on Monday, jumping to near 1.3900 in the Asian trade, the highest level seen in over two months. The Loonie pair trades firmly as fears of a fresh escalation in the Middle East war have further increased the safe-haven demand of the US Dollar (USD).
USD/CHF
The USD/CHF pair attracts fresh buyers following a modest Asian session dip to the 0.7970 area and touches a fresh high since January 19 at the start of a new week. Spot prices, however, struggle to capitalize on the strength and currently trade just below the 0.8000 psychological mark, nearly unchanged for the day.
CRUDE OIL
Oil prices rose sharply on Monday after Yemen’s Houthi group attacked Israel over the weekend, pointing to a broader scope for the war in the Middle East.
Gold (XAU/USD) reverses a modest Asian session dip to the $4,420 area and climbs back above the $4,500 mark, looking to build on Friday’s strong gains of over 2.50%. The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, retreats slightly from the vicinity of the monthly high and turns out to be a key factor offering some support to the commodity. However, expectations of higher interest rates globally might keep a lid on any meaningful appreciation for the non-yielding yellow metal.
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