The British Pound (GBP) advances by over 0.40% on Monday as US President Donald Trump said the Tuesday deadline he has set for Iran to make a deal is final, while rumors of a possible de-escalation weighed on the US Dollar (USD). GBP/USD trades around the 1.3240 figure at the time of writing.
The Canadian Dollar (CAD) gains traction against the US Dollar (USD) on Monday as traders react to evolving geopolitical developments in the US-Iran war. At the time of writing, USD/CAD is trading around 1.3921, hovering near four-month highs.
Donald Trump, United States (US) President, said that he is very upset that guns were supposed to go to protesters, but were kept by a certain group. He added that they’re going to pay a big price for that at a speech in Washington on Monday.
The EUR/USD pair is trading near the 1.1570 price zone on Monday as the US Dollar (USD) loses momentum amid relative easing concerns about the Iran war.
BNY’s Bob Savage focuses on rising FX intervention and fragile sentiment in Asia-Pacific (APAC) as higher Oil and geopolitical risks pressure regional currencies.
Gold (XAU/USD) consolidates modest gains on Monday as the US Dollar (USD) softens amid improving market sentiment, with traders reacting to fresh diplomatic developments aimed at ending the US-Iran war.
USD/JPY trades with a slightly softer tone on Monday as the Japanese Yen (JPY) finds modest support amid a broadly weaker US Dollar (USD), with traders assessing fresh geopolitical developments, including reports of potential ceasefire talks between the United States and Iran.
TD Securities strategists Robert Both and Emma Lawrence highlight that Canadian rates are opening weaker, with yields tracking US moves and geopolitical tensions. They expect CAD employment to show only a modest rebound and see imported volatility dominating.
Fresh data from the Institute for Supply Management (ISM) showed on Monday the Services PMI easing a tad to 54 in March from 56.1, coming in short of expectations at 55 and signalling some loss of momentum in the sector.
United States ISM Services New Orders Index rose from previous 58.6 to 60.6 in March
United States ISM Services PMI below forecasts (55) in March: Actual (54)
United States ISM Services Prices Paid: 70.7 (March) vs 63
