Micron fell about 4% on Monday and the NASDAQ 100 fell with it, while the Dow Jones Industrial Average (DJIA), which holds no memory-chip maker, finished higher. The S&P 500, which holds Micron and all 30 Dow members, finished slightly lower.
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/CNH unexpectedly fell to 6.6919 on Friday, with downside momentum starting to build. Intraday, they see potential for a brief dip below 6.6900, provided the pair stays under 6.6985. Over 1–3 weeks, a clear break and close beneath 6.6900 could open the way toward 6.6800, while resistance is now at 6.7050.
Buyers are stepping in and keeping the US Dollar (USD) bid due to safe-haven demand, as the resumption of hostilities in the Middle East and strikes between Russia and Ukraine have pushed energy prices higher.
Gold (XAU/USD) price drifts lower by about 1.49% on Monday as the Greenback gains ground amid escalating hostilities in the Middle East, pushing energy prices higher and increasing the likelihood of higher interest rates globally.
Societe Generale strategists note that the recent USD/KRW bounce stalled around 1390 and the pair is now testing the lower end of its consolidation, suggesting the broader downtrend may resume.
West Texas Intermediate (WTI) Oil reverses course on Monday and climbs to a two-week high as doubts over a Russia-Ukraine energy ceasefire and supply concerns in the Middle East keep a geopolitical premium in energy markets.
MUFG’s Lee Hardman notes the Chinese Renminbi has outperformed the Euro against the Dollar, with USD/CNY hitting a year-to-date low near 6.6900. PBoC’s lower daily fixes have supported trade‑weighted CNY gains.
Cleveland Federal Reserve (Fed) President Beth Hammack said on Monday that the neutral rate for the Fed funds “is likely higher,” that she is hearing signs of a problem with inflation expectations and that the question for the Fed is “how fast to make policy more restrictive.”
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD was little changed around 1.2800 on Friday and expect consolidation to persist. Intraday, they see the pair confined between 1.2790 and 1.2820, with 1.2775 as strong support. Over the next few weeks, upward momentum is rebuilding but seen too weak for a sustained break above 1.2835.
Cleveland Federal Reserve (Fed) President Beth Hammack said Monday that interest rates need to be higher, that inflation remains “too high”, and that more economic tightness is needed.
Rabobank's Senior FX Strategist Jane Foley discusses EUR/SEK, noting Sweden’s resilient economy, stronger-than-expected GDP and a hawkish shift at the Riksbank.
USD/JPY extends its advance on Monday, gaining 0.28% on the day to trade around 158.70 at the time of writing.
EUR/GBP remains on the defensive on Monday, sliding to a fresh year-to-date low of 0.8445 as French political and fiscal concerns keep the Euro (EUR) under sustained pressure. At the time of writing, the cross trades around 0.8450, down 0.17% on the day.
US President Trump said on Friday that Russia and Ukraine had agreed to stop striking each other's energy sites, and Brent fell below $103 a barrel when markets reopened.
The Pound Sterling (GBP) retreats about 0.11% against the Greenback on Monday amid a scarce economic docket on both sides of the Atlantic, but geopolitics continue to drive price action amid developments in the Middle East and the prolongation of the Russia-Ukraine conflict.
Societe Generale’s Kunal Kundu notes that India’s September Consumer Price Index (CPI) rose to 5.54% year-on-year, with food inflation at 7.74% and core inflation at 4.2%, signalling broadening price pressures.
Commerzbank analysts highlight that Beijing’s new trade agreement with Brussels, alongside a US–China tariff framework, modestly improves China’s external backdrop. They note the PBoC’s USD/CNY fixing model points to a slightly stronger Yuan and that both USD-CNY and USD-CNH fell to 6.69 last week, as easing trade tensions reduce headwinds for China’s export sector and current account.
USD/CHF starts the week on a positive note, snapping a two-day losing streak as broad US Dollar (USD) strength and a wide interest rate differential between the Federal Reserve (Fed) and the Swiss National Bank (SNB) keep the Swiss Franc (CHF) under persistent selling pressure.
AUD/USD trades around 0.6965 on Monday, down 0.24% at the time of writing after giving up its earlier gains.
Deutsche Bank’s Robin Winkler reviews Germany’s consensus outlook, where GDP growth is seen near 1% in 2027 before sliding towards 0% by 2030 as demographics weigh on potential growth.
EUR/USD gives up earlier gains on Monday as the US Dollar (USD) remains firmly bid across the board, while French political and fiscal uncertainty weighs on the Euro (EUR). At the time of writing, the pair trades around 1.1178, retreating from an intraday high of 1.1217.
Rabobank strategist Molly Schwartz and Christian Lawrence discuss Mexico’s rates outlook after Banxico held the overnight rate at 6.50%. They note upside risks to inflation, market pricing for more than 100bp of hikes over a year, a pronounced steepening of the Mexican yield curve versus the US, and resilient foreign ownership of Mbonos and Cetes.
NZD/USD declines by 0.23% on Monday, trading around 0.5600 at the time of writing, as the New Zealand Dollar (NZD) remains under pressure against the US Dollar (USD).
ING’s Chris Turner notes that the Dollar stays well supported as markets focus on solid US growth, above-target inflation and expectations for further Federal Reserve tightening. A potentially strong US September CPI is seen keeping rate expectations elevated. Turner highlights DXY consolidation above 102 as bullish and prefers a move towards 102.85 this week, with geopolitics offering additional support.
USD/CAD trims part of its earlier decline on Monday as the US Dollar (USD) regains ground after opening the week lower. The Canadian Dollar (CAD) struggles to attract buyers as differing monetary policy expectations for the Federal Reserve (Fed) and the Bank of Canada (BoC) favour the Greenback.
The Euro (EUR) has resumed its broader bearish trend against the British Pound (GBP) on Monday after a mild recovery attempt at the end of last week.
TD Securities economists Robert Both and Emma Lawrence expect the Bank of Canada (BoC) to keep the Overnight Rate at 2.25% through 2026, before lifting it back to a neutral 2.75% in 2027.
The New Zealand Dollar (NZD) retraces previous gains against the US Dollar (USD) on Monday and turns negative on the daily chart, with markets cautious amid the growing tensions in the Middle East and Oil prices at high levels.
Gold (XAU/USD) consolidates losses on Monday after reversing earlier gains as traders avoid taking large positions ahead of US inflation data due later this week, which could offer fresh cues on the Federal Reserve’s (Fed) next move.
The Indian Rupee (INR) trades significantly higher against the US Dollar (USD) on Monday. The USD/INR pair falls 1% to near 95.80 as the Reserve Bank of India’s (RBI) fresh measures to curb US Dollar demand have brought relief for the Indian currency.
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