fundamental_images_8The week started off quietly this Monday, with a softer tone around the US Dollar lifting the sentiment across the markets. Weak economic data out of the U.S. on Friday strengthened expectations that the Federal Reserve is to remain accommodative on its monetary policy stance in the week ahead. The USD/JPY pair advanced initially to 111.65, as downbeat Japanese exports data weighed negatively on the Yen, but later retreated to the 111.50 levels. The Euro optimism remained well and sound on early Monday, helping EUR/USD pair to move higher and visits the 1.1350 region. On the other hand, GBP/USD faced rejection near the 1.3300 handle at the start of a new trading week and tumbled to fresh session lows, below 1.3250 levels.
Markets buckle up for a quiet start to a busy week ahead that is dominated by the key central banks’ monetary policy announcements. On the data front, we have a thin showing in the session ahead, with the only relevant Eurozone trade balance slated for release at 10:00 GMT and the German Bundesbank monthly economic report at 11:00 GMT. The NA session is also expected to be light on the macro news, with no first-tier US economic releases.
All eyes will remain on the risk trends and Brexit-related headlines, as the UK readies for the third meaningful vote on PM May’s plan scheduled this Thursday, March 21st.
Oil prices fell on Monday in Asia after recording their best weekly gains in a month last week. OPEC is set to scrap its planned meeting in April and decided instead whether to extend oil output cuts in June, when the market will be able to assess the full impact of U.S. sanctions on Iran and the crisis in Venezuela.
Gold has retaken the $1300 mark, as the prevalent USD selling bias helped regain some positive traction in the last hour. Despite a mildly positive tone around the US Treasury bond yields, the US Dollar bulls remained on the defensive at the start of a new trading week and turned out to be one of the key factors benefitting the dollar-denominated commodity. This coupled with some renewed uncertainty over a possible breakthrough in the US-China trade deal further underpinned the precious metal’s relative safe-haven demand and remained supportive of the latest leg of an up-move.