EUR/USD
EUR/USD gains ground after opening at a gap-down, still holding daily losses near 1.1750 during the Asian hours on Monday. The pair remains in the negative territory as the US Dollar (USD) remains firm amid growing risk aversion.
GBP/USD
The GBP/USD pair struggles to capitalize on its modest intraday bounce and remains below the 1.3600 mark through the Asian session on Monday amid the emergence of some US Dollar (USD) buying.
USD/JPY
The USD/JPY pair gains ground to around 157.15 during the early European session on Monday. The US Dollar (USD) edges higher against the Euro (EUR) as ongoing concerns over the Middle East conflict boost safe-haven flows.
AUD/USD
AUD/USD gains ground after opening at a bearish gap but still remains in the negative territory, trading around 0.7240 during the Asian hours on Monday. The pair moves little despite stronger-than-expected China’s Consumer Price Index (CPI) data. Any change in the Chinese economy could impact the Australian Dollar (AUD) as China and Australia are close trading partners.
NZD/USD
The NZD/USD pair trades in negative territory near 0.5950 during the early Asian trading hours on Monday. The New Zealand Dollar (NZD) remains weak against the US Dollar (USD) after the release of the Chinese inflation report. The US Existing Home Sales data for April is due later on Monday.
USD/CAD
The USD/CAD pair attracts some dip-buying following Friday’s late pullback from the vicinity of the 100-day Simple Moving Average (SMA) and climbs back closer to the 1.3700 during the Asian session on Monday. This marks the fourth straight day of a positive move – also the sixth in the previous seven – and is sponsored by a modest US Dollar (USD) strength.
USD/CHF
The USD/CHF pair holds opening gains around 0.7785 during the Asian trading session on Monday. The Swiss Franc pair reflects strength as the US Dollar (USD) outperforms its peers amid the return of the risk-off impulse due to diminished hopes of an immediate breakthrough in negotiations between the United States (US) and Iran.
CRUDE OIL
Oil prices rallied on Monday, a day after President Donald Trump said Iran’s response to a U.S. proposal was “unacceptable,” raising supply fears as the Strait of Hormuz stayed largely closed, which kept the global market tight.
Gold (XAU/USD) adds to its modest intraday losses and touches a fresh daily trough, just below the $4,650 region, heading into the European session on Monday amid a goodish pickup in the US Dollar (USD) demand. Persistent geopolitical uncertainties turn out to be a key factor underpinning the USD’s reserve currency status. Furthermore, expectations for a more hawkish US Federal Reserve (Fed) offer additional support to the buck and contribute to driving flows away from the non-yielding yellow metal.
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