Gold price drops more than 0.50% on Monday amid the lack of demand for haven assets after United States (US) President Donald Trump delayed tariffs on the European Union (EU). In the meantime, trading remains thin due to the closure of the United Kingdom (UK) and US financial markets for holidays.
The Silver (XAG/USD) pair starts the week on a steady footing, hovering near $33.40 during the American trading hours on Monday, after gaining nearly 4% in the previous week on the back of a bullish technical breakout and renewed safe-haven demand.
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 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.
President Trump rescinded his threat of 50% tariffs on EU imports over the weekend, delaying the decision until July 9th, the original end date of his last delay on reciprocal tariffs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.
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.
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.
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.
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.
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.
The EUR/JPY cross gains strong positive traction at the start of a new week and snaps a three-day losing streak to the 161.00 neighborhood, or a nearly one-month low set on Friday.
The GBP/USD pair extends its winning streak for the second successive session, trading around 1.3580 during Monday's Asian hours. The technical analysis of the daily chart suggests that a bullish bias prevails as the pair moves upwards within an ascending channel pattern.
The Silver price (XAG/USD) trades with mild gains around $33.50 during the early European session on Monday. The escalating geopolitical tensions along with the weaker Dollar (USD) provide some support to the safe-haven currency like the Japanese Yen (JPY).
USD/CHF continues to weaken as the downtrend extends past 0.8250, as the pair loses almost 1%. Investors seeking safety bought the Swiss Franc (CHF) after US President Donald Trump threatened to enact tariffs of 50% on the European Union (EU) and 25% on Apple’s iPhone manufactured overseas.
EUR/USD recovered during the mid-North American session on Friday after diving below 1.1300 after US President Donald Trump rattled the markets by threatening to impose 50% tariffs on the European Union (EU). At the time of writing, the pair recovered and climbed to around 1.1350
The Australian Dollar (AUD) pushes higher against the US Dollar (USD), reaching a fresh weekly high near 0.6480 on Friday, up more than 1.20% on the day.
USD/JPY continued to trade lower, tracking USD and UST yields lower. Last at 142.55 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
US treasuries appear to have drawn some comfort today from the Supreme Court’s ruling that the unique structure of the Fed may protect its board members from potentially being removed by the President, Rabobank's FX analyst Jane Foley reports.
Overnight, US Dollar (USD) bounced after prelim PMIs surprised to the upside. But gains were retraced in the morning, alongside the pullback in UST yields. DXY was last seen at 99.40, OCBC's FX analysts Frances Cheung and Christopher Wong note.
The Mexican Peso (MXN) remains steady against the US Dollar (USD) despite US President Donald Trump’s threat of sweeping tariffs on the European Union (EU).
Pound Sterling (GBP) gains are extending to near 1.35, leaving spot trading at its highest since early 2022, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Important Information Before You Sign Up as a Company
Before you proceed, please read this important information about our review and rating policies.
Do – Get real customer reviews and embed our ratings widgets
Do – Get real customer reviews and embed our ratings widgets
Showcasing real experiences builds trust and drives long-term success. Our widgets highlight authentic customer feedback, boosting credibility. They link directly to your review page, making it easy for customers to share their experiences—so place them where happy clients can see and contribute.
Don't – Attempt to trick our system with fake reviews
Don't – Attempt to trick our system with fake reviews
We outperform other platforms in detecting fake reviews—our system gets smarter with more reviews. Using automated and human analysis, we monitor review trends, company history, and network and engagement patterns to flag suspicious reviews. Spam reviews appear in the spam tab, alerting the community, and repeated abuse may trigger manual violations. The best strategy? Rely on real, satisfied customers to build your rating honestly.