EUR/USD is trading under pressure below 1.1000 in early Europe this Monday. The pair is weighed down by a minor uptick in the US Dollar amid a cautious market mood. All eyes are on critical EZ and US data later this week.
GBP/USD is dropping toward 1.2400 in the early European morning. Cable has faced some selling pressure as the US Dollar is showing some signs of recovery amid a risk-averse market environment. UK Sunak’s speech in focus.
The USD/JPY pair is making efforts for recapturing the 134.50 mark in the Tokyo session. The major has got strength as new Bank of Japan (BoJ) Governor Kauo Ueda has reiterated the need for keeping monetary policy expansionary. BoJ Ueda is strongly supporting the continuation of the decade-long ultra-loose monetary policy on the expectation that Japan’s inflation will peak sooner.
The AUD/USD drifts lower for the second successive day on Monday and drops to a one-and-half-week low, around the 0.6675 region during the Asian session. A combination of factors assists the US Dollar (USD) to gain some positive traction on the first day of the new week, which, in turn, is seen exerting downward pressure on the AUD/USD pair. The recent hawkish signals by several Federal Reserve (Fed) officials reaffirmed market bets for another 25 bps lift-off at the next FOMC meeting in May. Adding to this, the incoming US macro data suggested that the world’s largest economy remained resilient and supported prospects for further policy tightening by the Fed.
The NZD/USD pair is on the verge of delivering a fresh downside below 0.6125 in the early European session. The Kiwi asset remained sideways in a 0.612-0.6147 range, however, a recovery move in the US Dollar Index (DXY) is signaling a bumpy ride for the former.
The USD/CAD pair has turned sideways after a stellar north-side move around 1.3550 in the early Asian session. The Loonie asset is expected to extend its recovery sharply above 1.3550. The strength in the Loonie asset looks enormous despite a subdued performance by the US Dollar Index (DXY).
The USDCHF pair continued to decline in the early Asian session. The Swiss Franc asset is testing the 0.8865 mark.
Oil prices fell in early Asian trade on Monday and were moving close to a five-week low as concerns over rising interest rates and slowing economic growth largely dented expectations for a recovery in demand this year.
Gold price struggles to capitalize on Friday’s modest bounce from the $1.970 region and comes under some selling pressure on the first day of the new week. The XAU/USD trades around the $1,977 area during the Asian session.
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