EUR/GBP trades around 0.8700 on Monday, remaining broadly stable on the day at the time of writing as opposing forces between the Euro (EUR) and the Pound Sterling (GBP) keep the cross within a narrow range.
MUFG’s Lee Hardman notes that the US Dollar (USD) has rebounded at the start of the week, lifting the Dollar Index (DXY) back towards its 200-day moving average near 98.500 after Friday’s low around 97.63.
The British Pound (GBP) edges higher against the Japanese Yen (JPY) on Monday, with GBP/JPY snapping a two-day losing streak as renewed tensions in the Strait of Hormuz keep Oil prices elevated and the Yen on the defensive, given Japan’s heavy reliance on imported energy.
Rabobank’s Senior FX Strategist Jane Foley highlights that the Japanese Yen (JPY) remains the weakest G10 currency, with USD/JPY trading just below 160 on fears of Japanese Ministry of Finance (MoF) intervention.
TD Securities strategists expect United Kingdom (UK) labour market data for February to show stabilisation, with a slight dip in unemployment and moderate job gains. Wage growth is forecast to slow across key measures, aligning with consensus.
Annual inflation in Canada, as measured by the change in the Consumer Price Index (CPI), climbed to 2.4% in March from 1.8% in February, Statistics Canada reported on Monday. This reading came in below the market expectation of 2.5%.
Gold (XAU/USD) steadies on Monday after opening the week with a bearish gap as evolving geopolitical developments surrounding the US-Iran war keep volatility elevated across global financial markets.
The Euro (EUR) has retraced previous losses against the US Dollar (USD) following a weak weekly opening, as rising tensions between the US and Iran have curbed hopes of a swift resolution of the conflict.
Brown Brothers Harriman (BBH) highlights that renewed Strait of Hormuz tensions have lifted Brent Oil nearly $10 from recent lows and weighed on global risk assets, with the US Dollar (USD) slightly firmer.
Gold’s (XAU/USD) is practically flat at $4,790 on Monday, as investors return to the safety of the US Dollar (USD) amid threats to the US-Iran peace process.
Societe Generale strategists highlight that Brent futures have swung sharply with conflict headlines, recently rebounding to $95/bbl.
The Australian Dollar (AUD) underperforms its major currency peers during the late European trading session on Monday, trading 0.15% lower against the US Dollar (USD) at around 0.7155.
TD Securities strategists expect Canada’s March Consumer Price Index (CPI) to accelerate as higher energy prices lift the headline rate, while food disinflation offsets some of the impact.
NZD/USD trades around 0.5880 on Monday, slipping by 0.06% at the time of writing as the New Zealand Dollar (NZD) weakens modestly against the US Dollar (USD).
The US Dollar (USD) bounced up from 0.7775 lows against the Swiss Franc (CHF) on Friday, but the ensuing recovery attempts have remained below the 0.7845 level on Monday, which leaves the immediate bearish trend in play.
OCBC strategists Sim Moh Siong and Christopher Wong note that post‑energy shock JGB curve steepening has exposed Bank of Japan (BoJ) credibility risks, with markets increasingly uneasy that the BoJ is behind the curve.
The Pound Sterling (GBP) exhibits a mixed performance against its major currency peers during the European trading session on Monday. The British currency is expected to remain volatile as a slew of United Kingdom (UK) economic data is scheduled to be published this week.
Silver (XAG/USD) has retreated nearly $4 from the monthly high right above $83.00 hit last Friday, as the precious metal consolidates immediately below the $80.00 level, with investors returning to the safe-haven US Dollar (USD), with the Middle East peace process under pressure.
DBS Group Research’s Philip Wee highlights how the US Senate confirmation hearing for Kevin Warsh as Fed Chair could reshape the risk premium on the Dollar.
UOB economists Quek Ser Leang Lee and Sue Ann highlight that EUR/USD spiked to 1.1848 before reversing sharply, leaving the Euro looking overextended on the downside. They see scope for further weakness but expects firm support at 1.1715, with 1.1665 unlikely to be tested.
Crude prices edged lower during Monday’s European trading session, with the US benchmark West Texas Intermediate (WTI) barrel changing hands at $86.85 at the time of writing. This is down from session highs at $88.50, but significantly above Friday’s lows, at $78.90.
USD/CAD trades around 1.3690 on Monday at the time of writing, virtually unchanged on the day, after rebounding from the monthly low near 1.3650 reached on Friday.
HSBC Asset Management notes that April’s recovery in risk appetite has coincided with a sharp fall in the US Dollar, leaving year-to-date performance broadly flat and in line with the longer-term dollar-down trend.
ING’s Chris Turner notes Sterling has held up even as markets scale back Bank of England tightening expectations to just one 25bp hike this year, while ING expects no change in rates. Political scrutiny of Prime Minister Keir Starmer could weigh on sentiment.
Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $79.45 per troy ounce, down 1.67% from the $80.80 it cost on Friday.
The Indian Rupee (INR) trades lower against the US Dollar (USD) at the start of the week. The USD/INR jumps to near 93.00 as renewed tensions between the United States (US) and Iran have lifted the oil prices and offered support to the US Dollar (USD).
OCBC strategists Sim Moh Siong and Christopher Wong highlight that Gold remains closely tied to risk proxies, with weekend geopolitical twists denting risk appetite.
The USD/CAD pair attracts some dip-buyers on Monday, though it struggles to capitalize on the move or find acceptance above the 1.3700 mark amid mixed fundamental cues.
The USD/JPY pair trades 0.25% higher to near 159.00 during the European trading session on Monday. The pair gains as the Japanese Yen (JPY) extends underperformance, following natural disasters in Japan.
Rabobank’s Senior Market Strategist Benjamin Picton highlights how shifting perceptions around the Strait of Hormuz are driving sharp moves in Brent.
Exclusive insights, trading signals, and real-time updates for registered users.