The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of six major currencies, is losing ground for the second successive session, trading near 100.60 during the Asian hours on Monday.
The AUD/NZD pair edged higher on Friday, trading near the 1.0800 zone after the European session, reflecting a steady bullish tone as the market heads into the Asian session.
The Mexican Peso (MXN) registered modest gains versus the US Dollar (USD) on Friday as market participants turned cautious ahead of the US-China talks in Switzerland.
Gold price climbed over 1% on Friday as the US Dollar (USD) retreated after posting two days of gains, weighed by lower US yields. A deterioration in risk appetite boosted Bullion prices, which are being underpinned by geopolitical concerns. At the time of writing, XAU/USD trades at $3,338.
The USD/JPY pair remains a focal point in the foreign exchange market, fluctuating within a key technical zone as markets digest evolving economic and monetary policy expectations.
AUDUSD faces key moving average resistance after bouncing off support levels. Traders await a breakout above key resistance levels for bullish momentum to strengthen.
The EUR/GBP pair edged lower on Friday, trading near the 0.8500 zone after the European session as selling pressure remained consistent. The pair settled within the middle of its daily range, reflecting cautious sentiment despite the broader bearish tone.
The EUR/USD pair advanced modestly on Friday, trading near the 1.1300 zone after the European session. Price action remained contained within the day’s range, reflecting steady demand despite mixed short-term momentum signals.
The EUR/JPY pair is trading lower on Friday, weighed down by renewed US–China trade tensions, mixed economic data out of Japan, and cautious investor positioning ahead of a scheduled speech by European Central Bank (ECB) Executive Board member Isabel Schnabel.
The Euro (EUR) is entering Friday’s NA session with a modest 0.2% gain, still trading below 1.13 but seeing a solid recovery from a short lived decline to 1.12, Scotiabank's Chief FX Strategist Shaun Osborne notes.
G10 FX performance is varied heading into Friday’s NA session as most currencies claw back a portion of this week’s post-Fed losses against the US Dollar (USD).
US Dollar (USD) short covering gathered pace vs. safe haven proxies. USDJPY was last at 145.30 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Gold faces consolidation after stalling near $3500, with a lower high at $3435 and weakening momentum suggesting a temporary pause in the uptrend, Société Générale's FX analysts note.
New Zealand Dollar (NZD) could weaken further against US Dollar (USD), but it might not be able to break clearly below 0.5870. In the longer run, bias for NZD is tilted to the downside toward 0.5870, potentially reaching 0.5835, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
US Dollar (USD) short squeeze gained traction and broadened against more currencies from safe haven to procyclical FX. MYR, Gold, JPY and THB led losses.
Australian Dollar (AUD) could drop below 0.6370 against the US Dollar (USD) but might not be able to maintain a foothold below this level. In the longer run, AUD must break and hold below 0.6370 before a move to 0.6330 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Pound Sterling (GBP) is likely to decline further, potentially testing the support at 1.3190. In the longer run, scope for GBP to weaken to 1.3150; currently it is unclear whether GBP can break clearly below this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The Pound Sterling (GBP) strengthened yesterday as the Bank of England sent some hawkish signals while cutting rates by 25bp. The announcement of the UK-US trade deal later in the day added some support to the pound, but that was short-lived, ING's FX analyst Francesco Pesole notes
Further Euro (EUR) weakness is not ruled out vs US Dollar (USD); oversold conditions suggest any decline could be limited to a test of 1.1185. In the longer run, c in EUR toward 1.1145, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Yesterday afternoon, Donald Trump finally presented his first trade deal with the United Kingdom in the Oval Office. However, despite all the fanfare, it must be said that the substance was rather thin once again.
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