EUR/USD
EUR/USD struggles for the second successive session, trading around 1.1660 during the Asian hours on Monday. The pair depreciates as the Euro (EUR) struggles after Bloomberg reported on Saturday that S&P Global Ratings downgraded France’s credit rating to A+ from AA-, citing “elevated” budget uncertainty despite the government’s submission of its 2025 draft budget.
GBP/USD
The GBP/USD pair kicks off the new week on a subdued note following Friday’s good two-way price swings and holds steady above the 1.3400 round figure during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution before positioning for an extension of the recent goodish recovery from the 1.3250-1.3245 region, or the lowest level since early August, touched last Tuesday.
USD/JPY
The Japanese Yen kicks off the new week on a weaker note in reaction to reports that the ruling Liberal Democratic Party and the Japan Innovation Party have agreed to form a coalition government. This sets the stage for Sanae Takaichi to become Japan’s first female Prime Minister, reviving market expectations for big spending and loose monetary policy.
AUD/USD
AUD/USD climbs further beyond the 0.6500 psychological mark in reaction to the upbeat Chinese macro data, which showed that the economy grew by 1.1% in the third quarter compared to 0.8% expected. This, along with subdued US Dollar demand, assists the pair to build on Friday’s rebound from the vicinity of its lowest level since early August.
NZD/USD
The NZD/USD pair gathers strength to near 0.5730 during the early Asian session on Monday. The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) after the release of consumer price inflation data. Later on Monday, traders will closely monitor China’s Q3 Gross Domestic Product (GDP), along with Industrial Production and Retail Sales reports for September.
USD/CAD
USD/CAD weakens on Monday, hovering around 1.4040 at the time of writing, extending its sideways consolidation since October 15. The US Dollar (USD) remains under pressure, hit by the ongoing US government shutdown and persistent trade frictions between the United States (US) and China.
USD/CHF
USD/CHF extends its losing streak for the fourth consecutive day, hitting a new one-month low at 0.7873 on Monday, before cutting losses following US President Donald Trump’s comments on the trade dispute with China. The US Dollar (USD) remains fragile in a risk-off environment, as investors worry about the combined impact of escalating US-China trade tensions, the prolonged US government shutdown, and mounting expectations that the Federal Reserve (Fed) will accelerate its monetary easing in the coming months.
CRUDE OIL
Oil prices dipped on Monday, pressured by worries over a global glut as escalating U.S.-China trade tensions added to concerns about an economic slowdown and weaker energy demand.
Gold price trades in negative territory around $4,245 during the early Asian session on Monday. The precious metal edges lower as the recent record-breaking rally seems overstretched and physical demand eases after the festive rush.
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