USD/JPYForex today kicked-off the week on an upbeat tone, with the risk-on moods underpinned by the surprisingly positive Australian election outcome and Indian election exit polls.

USD/JPY extended Friday’s rally and hit two-week tops at 110.32, as the Yen buyers were left unimpressed by the solid Japanese Q1 GDP report. However, further gains were limited the mixed tone in the Asian equities amid ongoing US-Iran rift and China trade concerns. EUR/USD pair remained vulnerable near 1.1150 levels. The broad-based risk-appetite trends and USD-dynamics dictated the sentiment surrounding the European currency for the time being, all in combination with the now stalled US-China negotiations and potential US tariffs on EU products. GBP/USD failed to sustain the bounce above the 1.27 handle heading into the Brexit deal vote scheduled later this week.

A relatively quiet start to a big week ahead, with the EUR calendar offering a couple of second-tier macro-economic news, including the Germany Producer Price Index that dropped 06:00 GMT and Eurozone Current Account data dropping in at 09:00 GMT.

The NA calendar also remains data-dry, except for the Chicago Fed National Activity Index that will be released at 12:30 GMT. Therefore, a slew of the speeches by the following central bankers will dominate against the backdrop of looming US-China trade concerns.

– 16:30 GMT: BOE’s Broadbent.
– 17:05 GMT: Fed’s Clarida.
– 23:00 GMT: Fed Chair Powell.

Oil rose to multi-week highs on Monday after OPEC indicated it would probably maintain production cuts that have helped support prices this year, while tension continued to escalate in the Middle East.

Gold traded modestly flat near $1,276, with the recovery capped by higher Treasury yields and US equity futures. Initial news reports concerning the geopolitical tensions between the US and Iran, coupled with the US-China trade pessimism, pleased bullion traders during early-day, however the gains couldn’t last long as investors focused more on Australia’s surprise election results and optimism surrounding the trade relationship between the US, Canada, and Mexico.