GBP/USD fell on Monday, tumbling a little over one percent and pushing the pair back down below the 1.3200 handle after a broad-based recovery in Greenback bidding.
Silver price ended Monday’s session with losses of over 0.40% as upbeat news from last weekend's meetings between US and Chinese delegations delivered an agreement to reduce tariffs for 90 days, marking the beginning of negotiations.
The AUD/NZD pair edged higher on Monday, trading near the 1.0900 zone after the European session, reflecting a steady bullish tone as the market heads into the Asian session.
The USD/JPY pair is trading near 148.00, up approximately 2% on the day, as risk-on sentiment dominates global markets following a significant breakthrough in US-China trade relations.
On May 15, Banco de México, also known as Banxico, is expected to reduce interest rates to 8.5%, according to a Reuters poll on Monday, despite high inflation levels near the top of the central bank’s range.
The EUR/JPY pair advanced on Monday, trading near the 165.00 zone after the European session, reflecting a strong bullish tone as the market heads into the Asian session.
The Mexican Peso (MXN) is on the defensive against the US Dollar (USD) after developments over the weekend boosted the Greenback. A de-escalation of the US-China trade war, alongside expectations of a “large-sized” interest rate cut by the Banco de Mexico (Banxico), drove the USD/MXN pair higher.
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee took a cautionary stance on the ever-evolving trade stance of the Trump administration on Monday.
In a very positive start to the new trading week, the Greenback edged sharply higher following a fresh bout of optimism on the trade front, all after the auspicious US-China trade talks over the weekend.
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The Canadian Dollar (CAD) fell further on Monday, shedding around one-half of one percent against the US Dollar (USD) as investors broadly bid up the Greenback after the Trump administration proudly announced that they would be walking back their own triple-digit tariffs on Chinese imports.
The US Dollar Index (DXY), which measures the value of the US Dollar against a basket of currencies, skyrocketed to a one-month high on Monday after China and the United States announced a 90-day pause in their trade war.
The US Dollar (USD) is trading higher against the Canadian Dollar (CAD) at the start of the week, supported by renewed risk appetite following a US–China trade agreement, diverging interest rate expectations, and anticipation of major US economic data.
Gold prices tumbled over 3% on Monday, following improvements in risk appetite after weekend discussions between the US and China, which agreed to a 90-day tariff reduction. At the time of writing, the XAU/USD trades at $3,225, having hit a daily high of $3,326.
The Dow Jones Industrial Average (DJIA) surged higher on Monday, rising over 1,100 points and climbing back above 42,400 for the first time since early April.
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The EUR/CAD pair traded near the 1.5600 zone on Monday, reflecting a minor loss after the European session as selling pressure persisted. The pair remains within the middle of its daily range, suggesting cautious sentiment as traders assess the broader outlook.
Bank of England's external Monetary Policy Committee member Alan Taylor noted a prevailing sense of precaution and concern among firms, adding that the tariff shock had been larger than anticipated.
The USD/CHF pair is trading higher, supported by a broad rally in the US Dollar (USD) following a significant breakthrough in US-China trade relations.
Brent Crude Oil has extended gains at the start of the trading week, buoyed by a temporary easing in geopolitical tensions and improving macroeconomic sentiment.
The EUR/USD pair traded near the 1.1100 zone on Monday, reflecting a sharp drop after the European session as sellers gained control. The pair remains within the middle of its daily range, suggesting that while bearish pressure is dominant, the market lacks a clear breakout signal.
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