News & Analysis

The Japanese yen starts the week mixed, with EUR/JPY and GBP/JPY showing bullish potential while USD/JPY remains stuck in a rut.

Over recent trading sessions, stability has become an increasingly important characteristic of gold's price action. Since the beginning of last week, the metal has gained more than 5.0%, reflecting that buying pressure has remained relatively consistent in the short term.

It’s been a range-bound backdrop for USD/JPY after the excitement of the rally followed by the intervention-fueled reversal, and that can make it easy for traders to get lulled to sleep at a time when markets are prone to shots of volatility.

Sr. Technical Strategist Michael Boutros highlights the levels that matter on the USD Majors, commodities, and equity indices charts this week.

The week is just getting underway, and one of the most relevant themes driving market moves remains the growing weakness around the Canadian dollar. This can be clearly seen in recent USD/CAD price action, with the pair gaining more than 0.6% over the last two trading sessions, highlighting that the CAD has once again lost ground against the U.S. dollar.

It’s been a brutal backdrop in stocks and that started even before the election. And, notably, the day after last week’s election results saw a vigorous bounce, indicating that there’s something else behind the bearish push.

A CPI reading that comes in above, or even at, consensus expectations this month would keep the FOMC on track to hike, so only a notable downside surprise would be likely to drive significant market volatility - what does that mean for the US Dollar?

The AUD/USD slipped below 0.6900 last week, as weak risk appetite and a much stronger-than-expected October jobs report combined to give the US dollar a lift against risk-sensitive commodity dollars. In the first half of today’s session, risk appetite has been slightly firmer with equity indices bouncing back. This has helped the Aussie a little bit. But with the potential for stock market volatility to return, and US inflation data likely to show an acceleration in price pressures, the risks to the near-term AUD/USD forecast remain tilted to the downside.

U.S. stocks are rising, extending gains from Friday, as oil prices decline and bargain hunters step in, although Nvidia falls amid controversy surrounding CEO Jensen Huang.

Gold prices rebounded after a small decline on Friday. Despite that small drop on Friday, the precious metal managed to recover much of its October losses last week, finishing around 5% higher on the week. Today saw the metal briefly climb above Friday’s high to reach a fresh post-NFP peak before easing back. A softer US dollar, helped by falling oil prices, has supported the advance.

EUR/USD rises, but the bearish outlook remains. Oil falls further as hopes of restraint and diplomacy in the Middle East rise.

The Nasdaq and S&P 500 outlook hinges on oversold signals after AI data center fears reversed early post-election gains while silver rebounds.