The Greenback gave some signs of life on Monday, partially reversing the ongoing leg lower amid tariff concerns and steady jitters surrounding the performance of the US economy.
The US Dollar Index (DXY) regained the 104.00 zone, although it maintained the trade near multi-month lows following a noteworthy pullback in US yields across the curve. The NFIB Business Optimism Index is due seconded by the JOLTs job Openings and the API’s weekly report on US crude oil inventories.
EUR/USD failed to extend its upward march on Monday, coming under some mild pressure always below the 1.0900 region. Absent data releases in the next couple of day, the focus well be on the ECOFIN Meeting, and speeches by the ECB’s Lagarde, Nagel and Lane.
The rally in GBP/USD appears to have met a solid resistance around the 1.2950 region so far, sparking a marked pullback to multi-day lows at the beginning of the week. The BRC Retail Sales Monitor will take centre stage across the pond.
Safe haven demand propped up the extra appreciation of the Japanese yen, sending USD/JPY well below the 147.00 support for the first time since early October. The Japanese final Q4 GDP Growth Rate will be at the centre of the debate seconded by Household Spending figures.
AUD/USD added to the recent decline and breached the 0.6300 support to clock three-day lows near 0.6270, an area coincident with the 55-day SMA. The Westpac’s Consumer Confidence gauge is due followed by NAB’s Business Confidence.
Prices of the American reference WTI resumed their downtrend, returning below the $67.00 mark against the backdrop of unabated uncertainty around US tariffs.
Gold prices added to the current leg lower, down for the third day in a row and retesting multi-day lows near $2,880 per troy ounce. Silver prices retreated further and broke below the $32.00 zone per ounce, hitting three-day lows.