EUR/USD grinds lower toward 1.0500, printing mild losses to extend Friday’s downward trajectory. Traders await this week’s bumper US and EU events in early Europe. Economic slowdown fears, EU-Russia tensions join pre-Fed anxiety to fuel the US Dollar rebound.
GBP/USD is consolidating losses below 1.2250 ahead of the key UK data releases. The pair is feeling the heat of the risk-aversion theme as investors turn anxious, anticipating the policy announcements by the Fed and BOE.
USD/JPY picks up bids to favor buyers around the 137.00 threshold as the cautious mood in the market underpins the US Dollar demand during early Monday. Adding strength to the upside momentum is the technical breakout and hawkish hopes from the US Federal Reserve (Fed).
The AUD/USD pair is looking for a cushion after dropping from above the 0.6800 mark in the Asian session. The Aussie asset is building a cushion around 0.6760. However, the bewildering inventory adjustment activity could lead to a further downfall as the risk-off impulse is still solid and has not displayed any sign of exhaustion yet.
NZD/USD is pressured in the open as traders get set for the Fed, which is expected to have a hawkish outcome.
USD/CAD consolidates daily gains around 1.3650 heading into Monday’s European session as the Loonie pair traders turn cautious ahead of a speech from Bank of Canada (BOC) Governor Tiff Macklem. Also challenging the pair buyers could be the recently firmer prices of Canada’s key export item, WTI crude oil.
The USD/CHF pair has continued its sideways performance, settled on Friday in the early Tokyo session as investors await the announcement of the United States Consumer Price Index (CPI) data for fresh impetus.
Oil prices rose more than 1% on Monday as a key pipeline supplying the United States remained shut while Russian President Vladimir Putin threatened to cut production in retaliation for a Western price cap on its exports.
Gold price is dropping for the first time in five trading days on Monday, kicking off the week on a negative note. Investors prefer to hold the United States Dollar (USD), in what seems to be a decisive week for the market.
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