EUR/USD
EUR/USD edges higher after registering gains in the previous six successive sessions, trading around 1.1650 during the Asian hours on Monday. The pair appreciates as the US Dollar (USD) struggles amid dovish Federal Reserve (Fed) expectations. Friday’s slower-than-expected US jobs growth suggests the US central bank could hold interest rates steady later this month.
GBP/USD
Despite the global flight to safety and reduced bets for more aggressive policy easing by the US Federal Reserve (Fed), renewed concerns about the US central bank’s independence weigh on the US Dollar (USD) and benefit the GBP/USD pair. In fact, Fed Chair Jerome Powell said in a statement that the Department of Justice is threatening a criminal indictment against him. Powell added that the threat of criminal charges is a consequence of the Fed on our best assessment of what will serve the public, rather than following the preference of the President.
USD/JPY
The USD/JPY pair gains ground near 158.05 during the early Asian session on Monday. The Japanese Yen (JPY) weakens against the US Dollar (USD) following a report that Japan’s Prime Minister Sanae Takaichi is considering calling a snap election for parliament’s lower house in the first half of February.
AUD/USD
The Australian Dollar (AUD) rises against the US Dollar (USD) on Monday, following three days of losses. The AUD/USD pair advances as the Greenback weakens, potentially amid concerns surrounding the Federal Reserve.
NZD/USD
The NZD/USD pair gains traction to around 0.5745 during the early European session on Monday. The US Dollar (USD) softens against the Kiwi on renewed concerns over the US Federal Reserve (Fed) independence. Traders will keep an eye on the US Consumer Price Index (CPI) inflation data for fresh impetus, which will be published later on Tuesday.
USD/CAD
The USD/CAD pair attracts some selling at the start of a new week, snapping a nine-day winning streak to its highest level since December 5, around the 1.3920 region, touched on Friday. The intraday slide is sponsored by a broad-based US Dollar (USD) weakness and drags spot prices back below the 200-day Simple Moving Average (SMA) in the last hour.
USD/CHF
USD/CHF breaks its four-day winning streak, trading around 0.7990 during the Asian hours on Monday. The pair loses as the Swiss Franc (CHF) receives support from safe-haven demand amid increased geopolitical tensions. US President Donald Trump warned Tehran against using force on demonstrators and signaled possible action if the crackdown intensifies, while Iranian officials cautioned against any US or Israeli intervention.
CRUDE OIL
Oil prices edged higher on Monday as escalating protests in Iran sparked concerns about supplies from the OPEC producer, while efforts to resume oil exports from Venezuela and expectations the market will be oversupplied this year limited gains.
Gold (XAU/USD) retains its bullish bias heading into the European session and currently trades below the $4,600 round figure or a fresh all-time peak, touched earlier this Monday. The US incursion in Venezuela, US President Donald Trump’s threat of military action in response to the unrest in Iran, the Russia-Ukraine war, a China-Japan spat, and the White House’s insistence on acquiring Greenland keep investors on edge. This, in turn, takes its toll on global risk sentiment and continues to underpin the precious metal’s safe-haven status.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.
