In recent weeks, the Pound Sterling (GBP) has recovered significantly against the euro, with the exchange rate now standing at around 0.84 instead of 0.87.
A spokesperson for the European Commission said on Monday that the European Union's (EU) 'zero-for-zero' proposal is still on the table in tariff negotiations with the United States (US), per Reuters.
As if to keep us on our toes on an otherwise uneventful Friday, Donald Trump followed up his threat of tariffs on smartphones by announcing that 50% tariffs would be imposed on EU goods from 1 June, due to stalled negotiations with the European Union.
EUR/USD gives back significant intraday gains and drops to near 1.1380 during North American trading hours on Monday from the monthly high of 1.1425 posted earlier in the day.
Scope for US Dollar (USD) to weaken further vs Japanese Yen (JPY); any decline is likely part of a lower range of 142.10/143.45. In the longer run, risk is still on the downside, but it remains to be seen if USD can maintain its pace of decline.
On Friday, Donald Trump returned to his favourite topic, tariffs. In response to the announcement of a big US technology company that it plans to move production from China to India, Trump threatened to impose a 25% tariff on its smartphone unless they are manufactured in the US for the US market.
USD/JPY extended its decline as Trump tariff threats ramped up demand for safe haven proxies, including JPY, CHF and Gold. USD/JPY was last at 142.85 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New Zealand Dollar (NZD) could rise further vs US Dollar (USD), but due to the overbought conditions, any advance is unlikely to reach 0.6030. In the longer run, for a sustained advance, NZD must break and hold above 0.6030, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Pound Sterling (GBP) extended its run higher, to more than 3-year high as activity, inflation and PMI services data surprised to the upside. Pair was last at 1.3565, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The AUD/USD pair gives back some of its initial gains after posting a fresh six-month high near 0.6540 on Monday. Still, the Aussie pair is up 0.35% around 0.6500 and is expected to remain on the frontfoot on renewed concerns over the safe-haven status of the US Dollar (USD).
There is scope for Australian Dollar (AUD) to rise above the early-month high of 0.6515 vs US Dollar (USD); any further advance is unlikely to reach 0.6550.
US Dollar (USD) bounced at first when Trump threatened with tariffs last Friday. But the bounce did not last, and USD extended its weakness into Monday trade. The price action underscores a re-pricing of weak USD sentiment and confidence.
Strong momentum indicates further Pound Sterling (GBP) strength; overbought conditions suggest any advance is unlikely to reach 1.3600. In the longer run, upward momentum remains strong; the next objective is 1.3635, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) saw whippy trade on Friday, falling at first in reaction to Trump’s threat of 50% tariff on EU goods. But losses were erased amid broad USD weakness. EUR was last seen at 1.1379 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The Oil market is trading firmer this morning after President Trump said he would delay the deadline for tariffs on EU goods until 9 July. This is after announcing late last week that the US would impose 50% tariffs starting 1 June.
Euro (EUR) could test the major resistance at 1.1400; a sustained rise above this level is unlikely. In the longer run, the likelihood of EUR breaking above 1.1400 is increasing; the next resistance is nearby at 1.1435, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
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Trump’s decision to pause tariffs on the EU intel on July 9 has boosted risk appetite on a light trading session on Monday, with UK markets closed for the Spring Bank holiday.The de-escalation of the EU-US trade rift has soothed investors, wary of a severe blow to international trade, which would si
Silver price (XAG/USD) remains steady after registering more than 1% gains in the previous session, trading around $33.40 per troy ounce during the European hours on Monday.
Oil prices are standing comfortably above $61.30, supported by US President Trump’s decision to put tariffs on Eurozone imports on hold until July 9th and escalating tensions in Gaza, but oversupply worries are limiting gains.Trump backed off on Friday’s threat to impose 50% levies on EU imports fro
AUD/JPY extends its gains for the second successive day, trading around 93.00 during the European hours on Monday. The risk sentiment improves US President Donald Trump extended the 50% tariff deadline on the European Union (EU) from June 1 to July 9.
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HF Markets ( HFM ) has appointed Ahmad Qutaishat as Senior Business Development Manager, marking another senior-level hire for the brokerage as it continues to expand its regional operations.
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