Gold’s (XAU/USD) has opened the week in the same cautious mood that ended the last one. The precious metal keeps hovering within a tight range around $4,700 at the time of writing, with doji candles on the daily chart highlighting an indecisive market.
ING analysts Warren Patterson and Ewa Manthey note that Oil has rallied strongly as US-Iran peace talks stall and energy flows through the Strait of Hormuz remain constrained.
The Euro (EUR) is trimming some losses against the British Pound (GBP) on Monday after finding support at the 0.8655 area late last week. Upside attempts, however, remain capped below a previous support area at 0.8670 so far, which leaves the broader bearish trend in play for now.
UOB strategists Suan Teck Kin and Alvin Liew assess how a potential Kevin Warsh Fed chairmanship could shape United States (US) monetary policy and the Fed funds rate.
The Indian Rupee (INR) holds onto weekly losses against the US Dollar (USD) at open on Monday.
Philip Wee of DBS Group Research observes that the US Dollar (USD), as measured by the US Dollar Index (DXY), has lost upside momentum after an earlier rebound. The index has stalled around 99 following a decline from 100.6 to just under 98 earlier in April.
Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $75.59 per troy ounce, down 0.15% from the $75.70 it cost on Friday.
EUR/JPY trades around 186.95 on Monday at the time of writing, up modestly by 0.07%, as markets adopt a wait-and-see stance ahead of this week’s monetary policy decisions from the Bank of Japan (BoJ) and the European Central Bank (ECB).
The Japanese Yen (JPY) trades higher against the US Dollar (USD), with the USD/JPY pair dropping to near 159.15, during the European trading session on Monday.
MUFG’s Lee Hardman highlights that the Pound (GBP) has outperformed, pushing EUR/GBP to new lows as markets price a more hawkish Bank of England (BoE) stance on the back of stronger United Kingdom (UK) growth and sticky inflation.
USD/CHF remains subdued for the second successive day, trading around 0.7840 during European hours on Monday. The technical analysis of the daily chart indicates the pair is positioned within the descending channel pattern, signaling an ongoing bearish bias.
Commerzbank analysts flag INR as the region’s laggard, with USD/INR hitting record highs on higher Oil prices, wider current account concerns and capital outflows.
The Pound Sterling (GBP) faces selling pressure against its major currency peers, but is marginally higher against the US Dollar (USD) around 1.3545, during the European trading session on Monday.
The US Dollar (USD) is showing the weakest performance among the G8 majors on Monday, and depreciates against the Canadian Dollar (CAD) for the second consecutive day. The pair trades at 1.3630 at the time of writing, to test fresh six-week lows after a knee-jerk reaction at 1.3713 on Friday.
ING’s Chris Turner expects the Euro to trade in tight ranges as markets await Thursday’s European Central Bank (ECB) meeting. He notes the ECB is unlikely to hike but must keep a rate increase on the table given high Oil-driven inflation expectations.
Gold (XAU/USD) struggles to build on a modest intraday move up, though it manages to hold above the $4,700 mark through the first half of the European session on Monday.
HSBC Asset Management notes that upcoming meetings of the Federal Reserve (Fed), European Central Bank (ECB and Bank of England (BoE) are unlikely to deliver policy changes, but guidance on inflation and growth will be closely watched.
Dow Jones futures falls 0.16%, trading near 49,300 during the European hours on Monday, ahead of the United States (US) regular opening. Meanwhile, S&P 500 and Nasdaq 100 futures decline 0.10% and 0.06% to near 7,190 and 27,420, respectively.
Societe Generale analysts argue that Iran’s ability to sustain full oil production under the U.S. blockade is time‑limited by onshore storage and floating stocks.
West Texas Intermediate (WTI), futures on NYMEX, trades 1.5% higher to near $95.00 during the European trading session on Monday.
EUR/CAD moves little after two days of gains, trading around 1.6010 during the European hours on Monday. The currency cross may rise as the Euro (EUR) draws support from surging energy prices, which have strengthened expectations around the European Central Bank (ECB) cautious outlook.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, turns lower for the second straight day on Monday and moves further away from a one-week high, around the 99.00 mark touched last Thursday.
Silver (XAG/USD) keeps trading within a roughly $2 range, between $75 and $77 on Monday, amid a cautious market mood, as investors await further developments in the US-Iran peace negotiations and interest rate decisions by some of the world’s major central banks.
Philip Wee at DBS Group Research discusses how Federal Reserve (Fed) leadership dynamics are influencing United States (US) markets and the US Dollar (USD).
ING analysts Chris Turner notes the US Dollar (USD) starts the week slightly offered as investors focus on positive geopolitical and political developments, but highlights that high Oil prices and elevated rates keep risks alive.
The NZD/USD pair trades with mild gains around 0.5885 during the early European session on Monday.
The Euro (EUR) extends gains for the second consecutive day against the US Dollar (USD) on Monday, as investors hold moderate optimism that the Iran-US level might yield a positive outcome. German GfK consumer sentiment data disappointed, but the impact on the common currency has been mild so far.
AUD/USD extends its gains for the second consecutive day, trading around 0.7160 during the early European hours on Monday.
UOB analysts Quek Ser Leang and Lee Sue Ann highlight that EUR/USD has rebounded within a tight range after earlier weakness, with recent price action seen as part of a short-term consolidation.
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