EUR/USD
The EUR/USD pair holds onto Friday’s losses near 1.1850 during the late Asian trading session on Monday. The major currency pair faces selling pressure as the US Dollar (USD) trades firmly, following the nomination of former Federal Reserve (Fed) Governor Kevin Warsh as the successor of current Chairman Jerome Powell.
GBP/USD
The GBP/USD pair loses ground to around 1.3670 during the early European session on Monday, pressured by renewed US Dollar demand. Signs of political stability in the United States (US) provide some support to the Greenback against the Pound Sterling (GBP). Traders will take more cues from the US ISM Manufacturing Purchasing Managers Index (PMI) data later on Monday.
USD/JPY
USD/JPY holds ground after three days of gains, trading around 155.20 during the Asian hours on Monday. The upside of the pair could be limited as the Japanese Yen (JPY) remains calm following the Bank of Japan’s (BoJ) January Summary of Opinions.
AUD/USD
The Australian Dollar (AUD) weakens against the US Dollar (USD) on Monday after registering over 1% losses in the previous session. The AUD/USD pair remains subdued following China’s RatingDog Manufacturing Purchasing Managers’ Index (PMI) data, which rose to 50.3 in January from 50.1 in December. This figure came in line with the expectations. The latest reading indicated a slight expansion in factory activity, but the fastest growth since last October.
NZD/USD
The NZD/USD pair holds positive ground around 0.6025 during the early Asian session on Monday. The New Zealand Dollar (NZD) remains firm against the US Dollar (USD) following the release of Chinese Manufacturing Purchasing Managers Index (PMI) data. Traders will take more cues from the US ISM Manufacturing PMI report later on Monday.
USD/CAD
USD/CAD extends its gains for the second successive session, trading around 1.3660 during the Asian hours on Monday. The pair remains stronger as the commodity-linked Canadian Dollar (CAD) struggles amid declining Oil prices, given Canada’s status of the largest crude exporter to the United States (US).
USD/CHF
The Swiss Franc (CHF) weakens against the US Dollar (USD) on Monday, as traders reassess the Federal Reserve (Fed) outlook following fresh signals from US President Donald Trump on the future leadership of the central bank. At the time of writing, USD/CHF is trading around 0.7717, rebounding after slipping to its lowest level since August 2011 near 0.7604 earlier this week.
CRUDE OIL
Oil prices fell nearly 5% on Monday, heading for the steepest single-session decline in more than 6 months, after U.S. President Donald Trump said Iran was “seriously talking” with Washington, signalling de-escalation with an OPEC member.
Gold price (XAU/USD) tumbles to a three-week low below $4,550 during the early European trading hours on Monday, pressured by some profit-taking. The precious metal extends the decline after reaching historic highs last week amid signs of political stability in the United States (US) as Kevin Warsh was selected to be the next Fed chair, easing concerns over the US central bank’s independence.
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