The AUD/USD pair is trading with a bearish bias around the 0.6850 region on Monday, as markets react to fresh geopolitical developments and central bank expectations.
The British Pound (GBP) collapses on Monday as Middle East escalations push the US Dollar (USD) higher, while Oil prices extend their gains for the fourth consecutive trading day. At the time of writing, the GBP/USD trades at 1.3184, down by more than 0.50%, hitting a four-month low.
The Dow Jones Industrial Average (DJIA) trades higher on Monday, adding back around 415 points in a thin recovery from last week's late plunge as President Donald Trump suggested a resolution to the war with Iran may be within reach. The S&P 500 rose 0.5% and the Nasdaq Composite gained 0.3%.
NZD/USD trades around 0.5715 on Monday, down 0.60% on the day at the time of writing, after falling earlier to its lowest level since November near 0.5700. The pair remains under heavy pressure as the US Dollar (USD) strengthens amid rising geopolitical tensions and a cautious market environment.
ING’s Frantisek Taborsky expects a risk-off tone in CEE markets as higher Oil prices and geopolitical tensions test already elevated central bank hike pricing.
Gold (XAU/USD) struggles to gain traction on Monday, trimming part of its earlier gains as escalating tensions in the Middle East and shifting interest rate expectations keep markets volatile.
USD/JPY retreats on Monday and trades around 159.60 at the time of writing, down 0.44% on the day, after reaching a nearly 20-month high above 160.00 earlier in the day. The move lower follows renewed warnings from Japanese authorities about potential intervention in the foreign exchange market.
EUR/USD extends its losses on Monday, slipping back below the 1.1500 psychological mark as a broadly stronger US Dollar (USD) keeps the Euro (EUR) under pressure. At the time of writing, the pair trades near 1.1444, remaining on the back foot for a fifth consecutive day.
Societe Generale economists expect Euro area headline inflation to rise sharply in March, driven by higher energy costs, while core inflation eases slightly.
National Bank of Canada’s (NBC) Angelo Katsoras outlines how an Iran conflict could severely disrupt Oil and gas markets if key energy infrastructure and the Strait of Hormuz are targeted.
Scotiabank strategists Shaun Osborne and Eric Theoret report that the Japanese Yen opened very weak, with USD/JPY spiking near 160.50 before stabilizing after fresh warnings of potential “bold action” from Japan’s Vice Finance Minister Mimura.
Federal Reserve (Fed) Chairman Jerome Powell said on Monday that there is tension between the Fed's two objectives, during a moderated discussion at the Harvard University Principles of Economics Class in Cambridge, per Reuters.
