EUR/USD
The EUR/USD pair loses ground to near 1.1620 during the early European session on Monday. The Euro (EUR) softens against the US Dollar (USD) amid fears of political turmoil in France. France’s Socialist party leader has threatened to bring down Prime Minister Sébastien Lecornu’s government by Monday if their budget conditions are not met.
GBP/USD
The GBP/USD pair kicks off the new week on a slightly positive note and holds steady above the 1.3300 round figure during the Asian session, though it lacks follow-through buying. Moreover, the fundamental backdrop suggests that the path of least resistance for spot prices remains to the downside and backs the case for an extension of a six-day-old downtrend.
USD/JPY
The Japanese Yen (JPY) prolongs the downtrend for the seventh straight day against its American counterpart amid expectations that Japan’s new Prime Minister Sanae Takaichi will pursue expansionary spending policies and resist early tightening. Apart from this, signs of easing US-China trade tensions turn out to be another factor denting demand for the safe-haven JPY, lifting the USD/JPY pair to an over two-week high, closer to the 153.25-153.30 supply zone, during the Asian session on Monday.
AUD/USD
The Australian Dollar (AUD) advances against the US Dollar (USD) after opening from a gap up on Monday due to optimism over progress in the United States (US)–China trade negotiations. Traders await the key upcoming Q3 and the September monthly inflation data for Australia this week which could shape the Reserve Bank of Australia’s (RBA) policy outlook.
NZD/USD
The NZD/USD pair holds positive ground near 0.5765 during the early European session on Monday. Easing tensions over the US-China trade tensions between the US and China provides some support to the New Zealand Dollar (NZD) against the US Dollar (USD). US President Donald Trump will meet Chinese President Xi Jinping later on Thursday to decide on the framework of a trade deal.
USD/CAD
USD/CAD depreciates after two days of little gains, trading around 1.3980 during the Asian hours on Monday. The pair loses ground as the US Dollar (USD) faces challenges following the release of softer US inflation data on Friday, which helps keep the likelihood of the Federal Reserve (Fed) rate cuts higher. The CME FedWatch Tool indicates that markets are now pricing in nearly a 97% chance of a Fed rate cut in October and a 96% possibility of another reduction in December.
USD/CHF
USD/CHF depreciates after opening with a gap up, trading around 0.7960 during the Asian hours on Monday. The pair recovers its daily losses as the US Dollar (USD) gains ground on rising hopes that Presidents Donald Trump and Xi Jinping may finalize a trade deal on Thursday in South Korea.
CRUDE OIL
West Texas Intermediate (WTI) Oil price advances on Monday, early in the European session. WTI trades at $61.57 per barrel, up from Friday’s close at $61.29.
Brent Oil Exchange Rate (Brent crude) is stable, hovering around its previous daily close at $65.17.
Gold (XAU/USD) retains its negative bias heading into the European session on Monday, though it lacks follow-through selling and remains confined in a multi-day-old range amid mixed fundamental cues. Signs of easing trade tensions between the US and China boosted investors’ appetite for riskier assets, which, in turn, is seen undermining demand for the safe-haven precious metal. However, dovish Federal Reserve (Fed) expectations act as a tailwind for the non-yielding yellow metal amid subdued US Dollar (USD) price action.
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