The NZD/USD opens the week with losses of over 0.14% on Monday, trading at around 0.5771 after opening the session at around 0.5778 as risk appetite improved. Despite this, the Kiwi failed to rally on expectations that the Reserve Bank of New Zealand might cut rates at the November 26 meeting.
MUFG Bank says the pound may fall if the Bank of England cuts rates in December, as markets are not fully priced for such a move. The bank said a cut looks more likely if inflation data continue to show signs of cooling.
EUR/USD edges up late in the North American session on Monday as the Greenback retreats from last week's highs, while the US-China trade war de-escalates ahead of the Donald Trump-Xi Jinping summit in South Korea. The pair trades at 1.1643, up by 0.15%.
China’s central bank reaffirmed its strict prohibition on cryptocurrency trading and warned of risks from offshore stablecoins. PBOC Governor Pan Gongsheng said global regulators are increasingly worried about their impact on financial stability and sovereignty. At the same time, the bank is expanding the digital yuan with new operational centres in Beijing and Shanghai.
Gold price slides below $4,000 for the first time since mid-October, hitting a daily low of $3,971 as risk appetite improved due to easing tensions between the US and China in regard to the trade war.
The Euro (EUR) is treading water against the US Dollar (USD) on Monday, as investors stay cautious ahead of this week’s twin central bank decisions from the Federal Reserve (Fed) and the European Central Bank (ECB).
GBP/USD pares some of last Friday’s losses and edges up moderately on Monday as the latest US inflation report might not deter the Federal Reserve (Fed) from cutting rates this week. At the time of writing, the pair trades at 1.3319, up 0.07%.
The AUDUSD pair is above the 100 day MA at 0.6534 and above the 38.2% f the move down from the September high at 0.65418. Those levels are now support.
The EUR/CHF cross opened the week with a mild bullish gap on Monday but failed to extend gains, settling into a sideways pattern. At the time of writing, EUR/CHF trades near 0.9264, its highest level since October 17th, after briefly sliding to an 11-month low around 0.9205 last week.
Silver (XAG/USD) extends losses on Monday amid a positive market sentiment, following upbeat reports regarding a potential China-US trade deal. The white metal’s reversal from mid-October highs above $54.00 is approaching the $47.00 level.
US stocks are higher. Yields are higher too. In the video, I take a look at the technicals driving the EURUSD, USDJPY and GBPUSD to kickstart the new trading week.
US-Canada trade tensions flare as Trump suspends talks and raises tariffs, leaving the Canadian dollar under pressure, Commerzbank's FX analyst Michael Pfister notes.
Firmed underlying tone is likely to lead to US Dollar (USD) trading in a higher range of 152.40/153.30. In the longer run, upward momentum is starting to build, but for a continued advance, USD must first close above 153.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Currency volatility remains subdued, but looming central bank actions and President Trump’s Asia trip could soon reignite market swings, Commerzbank's FX analyst Michael Pfister notes.
The Australian Dollar (USD) tops the G10 leaderboard as improved US-China trade prospects and RBA Governor Bullock’s hawkish remarks temper expectations of near-term easing, BBH FX analysts report.
Pound Sterling (GBP) could trade in a range between 1.3295 and 1.3360. In the longer run, for a continued decline, GBP must first close below 1.3295, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) is likely to trade within a range of 1.1605/1.1650. In the longer run, for the time being, EUR is likely to trade between 1.1585 and 1.1680, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Risk assets start the week in a positive mood. Weekend reports suggest the US and China have found common ground on topics like the sale of TikTok, soybean purchases and tariffs.
EUR/USD trims some losses and returns above 1.1640 from session lows at 1.1620, supported by a larger.than-expected recovery on German business sentiment on Monday.
The US Dollar is on its back foot agains its Canadian counterpart on Monday. The risk-on market amid hopes of a Sino-US trade deal and the recent rally in Oil prices are weighing on the pair, which is testing the bottom of the last three weeks' trading range, at the 1.3975 area at the moment.
EUR/JPY halts its four-day winning streak, trading around 177.80 during the European hours on Monday. The technical analysis of the daily chart indicates the prevailing bullish bias as the currency cross remains within the ascending channel pattern.
The EUR/USD pair loses ground to near 1.1620 during the early European session on Monday. The Euro (EUR) softens against the US Dollar (USD) amid fears of political turmoil in France.
Beijing’s latest policy statement marks a turning point in China’s yuan strategy, shifting from gradualism to assertiveness. The PBOC plans to deepen financial openness and boost offshore yuan usage, taking advantage of a global environment of dollar skepticism.
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