The Pound Sterling (GBP) outperforms its peers at the start of the week despite firm expectations that the Bank of England (BoE) will cut interest rates by 25 basis points (bps) to 4.25% in the policy meeting on May 8.
Rebound in USD/JPY continued as the Bessent-Kato meeting saw no mention of FX levels. Pair was last at 143.43 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
In gas, natural gas prices in Europe extended declines for a fourth straight session and fell around 4.9% day-on-day at one point in time to trade below EUR32/MWh (the lowest since July) on Friday, ING's commodity experts Ewa Manthey and Warren Patterson note.
It's been a quiet start to the week in financial markets, with cross-market levels of volatility falling. There has not been too much tariff-related news over the weekend, although it does seem US consumers could soon start to feel the bite.
It is looking less and less likely that the dramatic rise in long-term inflation expectations among US consumers, as measured by the University of Michigan for the second month in a row, is actually a random outlier – a measurement error. Fed Chair Jay Powell recently dismissed it as such.
Dollar Index (DXY) held on to recent gains amid relative calm (no fresh tariff angst). While tariff uncertainties linger, recent developments pointed to signs of de-escalation. DXY was last at 99.62 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The oil market managed to trade marginally higher in the early morning today, with ICE Brent trading above $67/bbl, ING's commodity experts Ewa Manthey and Warren Patterson note.
The mood music coming from the European Central Bank (ECB) sounds pretty dovish, with some even happy to speculate over 50bp of rate cuts, ING's FX analyst Chris Turner notes.
The US president continues to insist that China's president recently called him. The Chinese side denies this. And the US Treasury Secretary also refuses to confirm it. We have long since entered a world in which a Chinese ministerial official can be trusted more than the US President.
West Texas Intermediate (WTI) Oil price is trading lower at around $62.70 per barrel during the European hours on Monday. Crude Oil prices continue to decline as progress in US-Iran nuclear talks raises the prospect of Iranian crude re-entering the market.
The USD/CAD pair gains ground for the second successive day, trading around 1.3890 during the European session on Monday. However, technical analysis on the daily chart indicates a prevailing bearish trend, with the pair continuing to move lower within a clearly defined descending channel.
The NZD/USD pair continues to weaken for the second consecutive session, trading near 0.5940 during Monday’s European session. The decline is largely driven by a strengthening US Dollar (USD) amid signs of easing tensions between the US and China.
Indian Rupee (INR) crosses trade mixed at the start of Monday, according to FXStreet data. The Euro (EUR) to the Indian Rupee changes hands at 96.56, with the EUR/INR pair declining from its previous close at 97.03.
Platinum Group Metals (PGMs) trade mixed at the beginning of Monday, according to FXStreet data. Palladium (XPD) changes hands at $946.61 a troy ounce, with the XPD/USD pair easing from its previous close at $947.10.
The USD/CHF pair attracts some sellers to near 0.8270 during the early European session on Monday. Trade-related uncertainties between the US and China and persistent geopolitical risks boost the safe-haven demand, benefiting the Swiss Franc (CHF).
West Texas Intermediate (WTI) Oil price advances on Monday, early in the European session. WTI trades at $63.19 per barrel, up from Friday’s close at $62.97.
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