Analysis

Traders brace for the US CPI inflation data, which is due on Wednesday. 

The Pound Sterling (GBP) exhibits a mixed performance against its major peers on Monday, in a calm start of the week as investors keep their powder dry ahead of the United Kingdom (UK) labor market data for the three months ending September, which will be released on Tuesday.

A quick take on global FX markets this Monday morning sees the US Dollar (USD) largely holding onto gains made on the back of the likely Republican clean sweep, while China's fiscal stimulus has so far failed to move the needle on recovery prospects elsewhere in the world.

The stronger US Dollar (USD) following Donald Trump’s election win continues to undermine the major pair as traders expect the inflationary impulses will keep the US Federal Reserve (Fed) from cutting rates as much as they otherwise would have. 

The US Dollar Index (DXY) maintains its position on daily gains, hovering around 104.50 during European trading hours on Friday.

The NZD/USD pair trades with a mild negative bias near 0.6020 during the early Asian session on Friday.

The AUD/USD pair recovers almost entire Wednesday’s losses and climbs back to near 0.6630 in Thursday’s European session.

Trump trades continue to underpin the US Dollar; the attention will shift to the Fed rate decision. 

Dollar Tree jumped in afterhours trading Monday after the budget retailer said that Rick Dreiling is set to stepped down as chief executive and chairman owing to health reasons.

USD/CHF retraces its recent gains from the previous session, trading around 0.8650 during the European session on Monday.

The Reserve Bank of Australia (RBA) is expected to maintain the cash rate at 4.35% during Tuesday’s policy meeting, as underlying inflation, reflected in the trimmed mean, remains high.

The AUD/USD pair gains momentum to near 0.6595 during the early Asian session on Monday.

The US Dollar (USD) is tracking a little higher ahead of the US jobs data at 8.30ET. Yesterday’s outperformers (JPY and CHF) in early trade here are today’s underperformers as the mood in equity markets improves, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

This morning's Caixin PMI for the manufacturing sector surprised on the upside, pointing to a slight expansion of economic output at 50.3, after coming in at 49.3 last month.

The Australian Dollar (AUD) edges lower against the US Dollar (USD) following two days of gains, as Australia's mixed Producer Price Index (PPI) data for the third quarter was released on Friday.

The USD/CHF pair drifts lower to around 0.8655 during the early European session on Thursday.

The GBP/USD pair attracts fresh sellers following the previous day's good two-way price move and slides closer to mid-1.2900s during the Asian session on Tuesday.

The GBP/USD pair trades with mild losses near 1.2970 on Tuesday during the early Asian session.

The Australian Dollar (AUD) continues its decline for the second straight session on Monday. However, hawkish comments from the Reserve Bank of Australia (RBA) may limit further losses for the AUD/USD pair.

The GBP/USD pair extends the decline to around 1.2945 during the early European session on Monday. A bullish US Dollar (USD) on the back of bets for a less aggressive easing by the Federal Reserve (Fed) drags the pair lower.