EUR/USD
The Euro (EUR) extends gains for the second consecutive day against the US Dollar (USD) on Monday, as investors hold moderate optimism that the Iran-US level might yield a positive outcome. German GfK consumer sentiment data disappointed, but the impact on the common currency has been mild so far.
GBP/USD
GBP/USD advances on Friday as improved risk appetite weighed on the US Dollar’s (USD) safety appeal amid growing speculation that a second round of talks between the US and Iran looms. A three-week extension of the ceasefire between Israel and Lebanon added to traders’ optimism.
USD/JPY
The USD/JPY pair gives back its opening gains and trades marginally lower around 159.20 during the late Asian trading session on Monday. The pair surrenders early gains as the US Dollar (USD) turns upside down despite the United States (US)-Iran diplomacy remaining at a stalemate.
AUD/USD
The AUD/USD pair turns positive for the second consecutive day following a modest dip on Monday and climbs to a three-day high, around the 0.7170 region during the Asian session. Spot prices, however, remain confined within a familiar range that has been held over the past two weeks or so, warranting some caution for bullish traders.
NZD/USD
The NZD/USD pair attracts some dip-buyers at the start of a new week and builds on Friday’s bounce from the 200-day Simple Moving Average (SMA) support near the 0.5840 area. Spot prices climb back closer to the 0.5900 mark during the Asian session amid a modest US Dollar (USD) downtick, though the upside seems capped on the back of geopolitical uncertainties.
USD/CAD
The USD/CAD pair attracts some sellers following a modest Asian session uptick to the 1.3680 area on Monday, though it lacks follow-through selling. Spot prices currently trade above mid-1.3600s, nearly unchanged for the day as traders seem reluctant to place aggressive directional bets amid mixed fundamental cues.
USD/CHF
USD/CHF remains subdued for the second successive day, trading around 0.7840 during the Asian hours on Monday. The pair struggles as the US Dollar (USD) extends its losses despite increased safe-haven demand.
CRUDE OIL
Oil prices were up more than 1% on Monday as peace talks between the U.S. and Iran stalled while shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight.
Gold (XAU/USD) retains a positive bias above the $4,700 mark heading into the European session on Monday, though it lacks bullish follow-through buying. Reports suggest that Iran gave the US a new proposal on reopening the Strait of Hormuz and ending the war, with nuclear negotiations postponed for a later stage. This, in turn, revives hopes for US-Iran peace talks and undermines the US Dollar’s (USD) reserve currency status, which is seen as acting as a tailwind for the commodity.
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