EUR/USD portrays exhaustion of the previous bull-run amid Monday’s holiday-inspired lackluster trading day. In doing so, the major currency pair fades the previous day’s upside break.
GBP/USD takes offers to pare intraday gains around 1.2080, teasing bears for the first time in three days, even as the holiday mood limits the Cable pair’s immediate moves. Multiple negatives surrounding the UK seemed to have lured the GBP/USD bears of late. Among them, British Prime Minister (PM) Rishi Sunak’s shelving of the plans for a major overhaul of the childcare system aimed at saving parents money and helping them return to work, per The Telegraph, gains major attention.
The USD/JPY pair is hovering around 131.00 after a less-confident rebound from 130.78 as settled on Friday. The asset is hoping for a continuation of weakness, which might drag the asset again below the immediate mark of 131.00. The major is likely to face significant heat amid weakness in the US Dollar Index (DXY).
AUD/USD settled the last trading session of CY2022 on a promising note after the US Dollar Index (DXY) faced immense pressure. The Aussie asset continued its winning spree for the sixth day despite less trading activity due to the festive week. Usually, the overall trading activity gets reduced sharply amid a holiday-truncated week as investors prefer to save themselves from unexpected wild gyrations.
The NZD/USD pair will likely remain sideways, around 0.6350 ahead on Monday. The kiwi asset displayed wild gyration on Friday in the late New York session as investors eased their positions to go light for CY2023. The volatile moves are likely to be compromised from rangebound moves, resulting in lackluster performance by the kiwi asset for a short time.
USD/CAD takes offers to reverse the year-start gains around 1.3550 even as holiday-thinned markets probe traders during early Monday. In doing so, the Loonie pair cheers firmer prices of Canada’s main export item, WTI crude oil, despite the US Dollar’s recent corrective bounce. It’s worth noting, however, that the lack of major data/events and cautious mood ahead of the Minutes of the latest Federal Open Market Committee (FOMC) meeting, as well as Friday’s December month employment numbers for the US and Canada, probe the Loonie pair traders.
The USD/CHF pair is likely to display a lackluster performance ahead around 0.9250 amid festive mood in various potential markets. Also, the Swiss franc asset is expected to remain sideways as investors are awaiting the release of the Swiss Consumer Price Index (CPI) data for fresh impetus.
Oil prices swung wildly in 2022, climbing on tight supplies amid the war in Ukraine, then sliding on weaker demand from top importer China and worries of an economic contraction, but closed the year on Friday with a second straight annual gain.
Gold price (XAU/USD) seesaw near $1,825 during early Monday, mostly unchanged, as holidays in multiple markets restrict the metal’s immediate moves despite the US Dollar’s rebound.
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