EUR/USD has breached the 0.9900 mark for the first time since Dec 2020 amid unrelenting safe-haven demand for the US dollar. Risk-off flows dominate amid the worsening European energy crisis-led global recession fears.
GBP/USD slides to the fresh low since March 2020 as the cable traders await the UK PM Leadership results on Monday. Firmer US dollar cheers fears of worsening energy crisis to exert downside pressure on the pair. Thin trading to extend amid US holiday.
The USD/JPY pair is advancing towards the 24-year high at 140.80, recorded last week. The asset is gaining a lot of traction as the US dollar index (DXY) has refreshed its two-decade high at 110.03. The DXY is auctioning near the escalated levels and is gearing up for a fresh rally ahead.
The AUD/USD pair is displaying topsy-turvy moves in a narrow range of 0.6774-0.6800 in the Asian session. After a gap down open, the aussie bulls attempted a break above the critical hurdle of 0.6800, however, the risk-off market tone strengthened the greenback bulls.
The NZD/USD pair has witnessed selling pressure after attempting to cross the immediate hurdle of 0.6100 in the Asian session. In early Tokyo, the asset opened lower than Friday’s closing price but found buyers. However, the follow-buying buying has failed to cross the critical hurdle of 0.6100 and is declining firmly to test the previous week’s low around 0.6050.
USD/CAD begins the week on a positive footing around 1.3130-40 as bulls brace for the key Bank of Canada (BOC) monetary policy decision and Canada employment data amid oil woes for the bloc. In doing so, the Loonie pair returns to the bull’s radar but mixed concerns over Canada’s main export item, namely WTI crude oil, challenge the upside momentum.
USD/CHF picks up bids to refresh intraday high near 0.9830-35 during early Monday morning in Europe. In doing so, the Swiss currency (CHF) pair approaches a horizontal region comprising multiple hurdles marked since early May those have been pushing back the bulls of late.
Oil prices rose on Monday, recovering some ground after bruising losses last week as investors awaited details on potential OPEC production cuts from a meeting later in the day. WTI crude oil prices remain firmer around $87.70 as hopes of easing the energy crisis wane even as Gazprom signals more gas supplies to Europe.
Gold price lacks follow-through recovery momentum amid fresh US dollar demand. The European energy crisis spells recession fears, spooks markets and lifts the dollar. XAU/USD sellers look to keep the upper hand amid an impending bear cross on 1D.
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