EUR/USD is consolidating the latest decline at around 1.0350 in early Europe. Risk aversion remains the main underlying theme amid China’s covid protests, lifting the safe-haven demand for the US Dollar. ECB Lagarde’s testimony is on tap.
GBP/USD is under moderate selling pressure around 1.0250 ahead of the London open this Monday. The pair struggles to cheer the stimulus hopes amid fears of major strikes in the UK and covid protests in China.
The USD/JPY pair has sensed a decent buying interest after testing the 139.00 mark in the early Tokyo session. The asset is aiming to extend its recovery towards the round-level resistance of 140.00 as the risk-off profile has come in action led by escalating civil risks in China.
AUD/USD justifies its risk-barometer status as it slumps to 0.6680 early Monday, marking more than 1.0% daily loss amid the sour sentiment. In addition to the risk-off mood, downbeat data from Australia and the grim comments from Reserve Bank of Australia (RBA) Governor Philip Lowe also favor the Aussie pair’s sellers.
The NZD/USD pair has built a cushion around 0.6220 after a gap-down opening as China’s anti-Covid lockdown protests hammered commodity-linked currencies. The kiwi asset has been declining for the past week after failing to test the round-level hurdle of 0.6300.
The USD/CAD pair kicks off the new week on an upbeat note and hits a one-week high during the Asian session. This marks the second successive day of a positive move and is sponsored by a combination of supporting factors. The worsening COVID-19 situation raises concerns about weaker fuel demand in the world’s top crude importer and drags oil prices to a fresh YTD low. This, in turn, is seen undermining the commodity-linked Loonie, which, along with a modest US Dollar strength, acts as a tailwind for the major.
USD/CHF retreats from intraday high but stays on the bull’s radar for the third consecutive day, near 0.9465 heading into Monday’s European session. In doing so, the Swiss Franc (CHF) pair portrays the market’s risk-off mood ahead of the key data/events scheduled for publishing this week.
Oil prices fell sharply to a near 11-month low on Monday as escalating protests in several major Chinese cities ramped up concerns over increased economic disruptions in the world’s largest crude importer.
Gold price is posting moderate losses so far this Monday, kicking off the week on the wrong footing while snapping a four-day uptrend. The extended recovery in the United States Dollar (USD) is weighing on the bright metal amid a risk-off market profile.
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