The US Dollar continues to hold its own as we come into the new week, trading just off recent eight week highs. What we’ve seen has been a wave of stronger US economic data and a repricing of Fed expectations.

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EUR/USD stays weak below 1.0950 on US Dollar strength

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EUR/USD stays defensive below 1.0950 in European trading on Monday. Broad risk aversion, amid the escalating geopolitical tensions in the Middle East and conflicts between China and Taiwan, underpin the safe-haven US Dollar at the expense of the Euro. 

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GBP/USD steadies above 1.3050 amid cautious markets

GBP/USD steadies above 1.3050 amid cautious markets

GBP/USD trades modestly flat above 1.3050,  struggling to capitalize on Friday's modest gains in the European session on Monday. Sustained US Dollar strength, due to looming geopolitical risks worldwide and China's economic concerns, keeps the pair in a familiar range. 

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Gold price draws support from hopes for additional Fed rate cuts, stronger USD caps gains

Gold price draws support from hopes for additional Fed rate cuts, stronger USD caps gains

Gold price  attracts some dip-buying on the first day of a new week and trades near a one-week top, around the $2,660 region heading into the European session. The US PPI pointed to a favorable inflation outlook and suggested that the Fed will cut interest rates further.

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Week ahead: What are the financial markets watching this week

Week ahead: What are the financial markets watching this week

The European Central Bank is widely anticipated to reduce policy by 25bps amid softening CPI inflation data and weak growth metrics. Investors have fully priced in the cut, with another 25bp reduction expected at December’s meeting. A rate cut this week would follow rate reductions in June and September.

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RBA widely expected to keep key interest rate unchanged amid persisting price pressures

RBA widely expected to keep key interest rate unchanged amid persisting price pressures

The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.

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VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

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