EUR/USD
The EUR/USD pair posts modest gains around 1.1645 during the early Asian session on Monday. The prospect of a US Federal Reserve (Fed) rate cut at its December meeting on Wednesday could weigh on the US Dollar (USD) against the Euro (EUR). Later on Monday, the German Industrial Production and Eurozone Sentix Investor Confidence reports will be published.
GBP/USD
The GBP/USD pair kicks off the new week on a subdued note and oscillates in a narrow trading band, around the 1.3320-1.3325 region, during the Asian session. Spot prices, however, remain close to the highest level since October 22, touched last Thursday, with bulls awaiting a sustained strength and acceptance above the 100-day Simple Moving Average (SMA) before placing fresh bets.
USD/JPY
The USD/JPY pair loses ground to near 155.25 during the early Asian session on Monday. The US Dollar (USD) weakens against the Japanese Yen (JPY) as traders brace for the Federal Reserve (Fed) meeting this week, where policymakers are widely expected to cut interest rates. The final reading of Japan’s Gross Domestic Product (GDP) report for the third quarter will be released later on Monday.
AUD/USD
The AUD/USD pair extends its winning streak for the 12th trading day on Monday. The Aussie pair trades firmly to near its over two-month high of 0.6650 during the late Asian session, posted on Friday. The Australia Dollar (AUD) has been demonstrating strength from past few weeks as market participants expect the Reserve Bank of Australia (RBA) to convey, in its monetary policy announcement on Tuesday, that it is done with reducing interest rates.
NZD/USD
The NZD/USD pair attracts some buyers to around 0.5785 during the Asian trading hours on Monday. The New Zealand Dollar (NZD) remains weak against the US Dollar (USD) after China’s Trade Balance data. All eyes will be on the US Federal Reserve (Fed) interest rate decision on Wednesday.
USD/CAD
The USD/CAD pair trades weakly near its 11-week low around 1.3800 during the Asian trading session on Monday. The Loonie pair fell drastically on Friday after the release of the Canadian labor market report for November, which showed that the Unemployment Rate dropped significantly to 6.5% from 6.9% in October due to a significant increase in part-time workers.
USD/CHF
Swiss inflation data for November indicate stabilization, keeping pressure on further rate cuts low and supporting the Swiss Franc (CHF). Even with potential future easing, CHF strength could persist as falling inflation boosts its purchasing power over time, Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen notes.
CRUDE OIL
Oil prices hovered at two-week highs on Monday as investors expect a likely U.S. Federal Reserve interest rate cut this week to lift economic growth and energy demand, while monitoring geopolitical risk that threatens Russian and Venezuelan supply.
Gold (XAU/USD) sticks to its modest intraday gains through the early European session on Monday, though it lacks bullish conviction and remains confined in a one-week-old trading range. The growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs again this week keeps the US Dollar (USD) depressed near a one-month low and acts as a tailwind for the non-yielding yellow metal. Apart from this, the cautious market mood and geopolitical uncertainties turn out to be other factors offering some support to the commodity.
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