EUR/USD
EUR/USD oscillates in a tight range above 1.1600 in the European session on Monday. Markets remain wary amid the United States-China trade war re-escalation, which keeps the US Dollar on the defensive. Meanwhile, political turmoil in France caps any upside for the shared currency in the near term.
GBP/USD
GBP/USD keeps its range near 1.3350 in the European trading hours on Monday, with the downside limited by a broadly subdued USD demand and a recovery in risk appetite. The divergent Fed-BoE policy expectations also remain supportive of the pair.
USD/JPY
The Japanese Yen (JPY) recovers slightly from the Asian session low, though it remains in negative territory and is undermined by a combination of factors. Domestic political chaos continues to fuel uncertainty about the likely timing and the pace of rate hikes by the Bank of Japan. Furthermore, US President Donald Trump’s pivot on China tariffs fails to assist the safe-haven JPY to build on its recovery from the lowest level since February 13, touched against its American counterpart on Friday.
AUD/USD
AUD/USD advances after registering around 1.25% losses in the previous session, trading around 0.6530 during the Asian hours on Monday. The pair moves little following the release of China’s Trade Balance data for September, which arrived at CNY645.47 billion, narrowing from the previous figure of CNY732.7 billion. Exports rose 8.4% YoY in September vs. 4.8% in July. The country’s imports advanced 7.5% YoY in the same period vs. 1.7% recorded previously.
NZD/USD
The NZD/USD pair gains ground to near 0.5740 during the Asian trading hours on Monday. The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) as traders hope the United States (US) may temper its latest escalation of the trade war with China.
USD/CAD
The USD/CAD pair trades with a negative bias for the second straight day on Monday, though it lacks follow-through selling and holds above the 200-day Simple Moving Average (SMA) through the Asian session.
USD/CHF
The USD/CHF pair clings to gains in Friday’s late Asian session near a fresh monthly high around 0.8070 posted on Thursday. The Swiss Franc pair traders firmly as the US Dollar (USD) has stretched its rally despite upbeat expectations that the Federal Reserve (Fed) will cut interest rates further in the remaining year.
CRUDE OIL
Oil prices rose on Monday after hitting five-month lows in the previous session, as investors hoped potential talks between the presidents of the U.S. and China could ease trade tensions between the world’s two largest economies and oil consumers.
Gold (XAU/USD) continues scaling new record highs through the Asian session on Monday and climbs to the $4,078 region in the last hour amid a supportive fundamental backdrop. Investors remain worried about economic uncertainties on the back of a prolonged US government shutdown and rising geopolitical tensions. Apart from this, fresh US-China trade concerns turn out to be key factors underpinning demand for the safe-haven precious metal.
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