EUR/USD begins the week on the front foot but trims some of its earlier gains after hitting a four-week high of 1.1420, sponsored by US President Donald Trump's reversal on his decision to enact tariffs on the European Union (EU) on June 1.
The Australian Dollar (AUD) is consolidating within a narrow range against the US Dollar (USD) after reaching a six-month high early Monday. However, the pair retreated from the highs ahead of Tuesday’s key economic data.
As market players digested news that President Trump backpedalled on his threats of levying 50% taxes on European products, the US Dollar (USD) stayed on the defensive in quite a poor start to the new trading week.
The British Pound (GBP) is trading sideways against the US Dollar (USD) after reaching its highest level in three years at the start of this week’s session. The GBP/USD pair surged to 1.3593 early in Monday’s session.
The Euro (EUR) remains conflicted against its British Pound (GBP) counterpart on Monday, struggling to build sustained momentum despite an early attempt to recover last week’s losses.
The Indian Rupee (INR) trims some of the earlier gains against the US Dollar (USD) on Monday, with the USD/INR pair retreating slightly above 85.00 during the American trading hours.
The Canadian Dollar (CAD) kicked off the new trading week on a high note, kicking into fresh seven-month highs against the US Dollar (USD) and driving USD/CAD down into the 1.3700 handle for the first time since mid-October.
USD/JPY is attempting a mild recovery after last week’s sell-off in the United States (US) bond market dragged the pair below the key psychological level of 144.00.
The AUD/USD pair surrenders significant intraday gains after posting a fresh six-month high near 0.6540 on Monday. The Aussie pair gives back a majority of gains as the US Dollar (USD) recoups its early losses.
The chip giant will announce earnings on Wednesday after the close. A slew of retailers will also report which may give insight into the tariff implications.
The Euro (EUR) is firming against the Canadian Dollar (CAD) on Monday, bolstered by easing trade tensions after the United States announced a delay in implementing new tariffs on European imports.
The Canadian Dollar (CAD) gives back some of the initial gains against the US Dollar (USD) at the early American session on Monday, with the USD/CAD pair trading around 1.3720 at the time of writing after hiting a daily low of 1.3686 earlier in the day as follow-through selling faded on the signs of
The Mexican Peso (MXN) is experiencing a steady appreciation against the US Dollar (USD) on Monday, reflecting lingering uncertainty in the United States (US) economic outlook amid concerns about US President Donald Trump’s tariff threats and the country’s fiscal outlook.
The EU’s tariff reprieve followed what the president called a 'very nice call' with Commission President von der Leyen over the weekend, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The Canadian Dollar (CAD) had a decent run lower last week, with the US Dollar's (USD’s) 1.6% drop through Friday leaving the CAD as one of the better-performing major currencies on the week.
President Trump rescinded his threat of 50% tariffs on EU imports over the weekend, delaying the decision until July 9th, the original end date of his last delay on reciprocal tariffs announced early in April, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The US Dollar Index (DXY), which tracks the performance of the Greenback’s value against six major currencies, is trading very close where it opened, near 99.09 at the European closing bell.
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.
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