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.

GBP/JPY breaks its two days of losses, trading around 197.90 during the European session on Monday.

EUR/USD trades cautiously near more than four-month low around 1.0700 in Monday’s European session.

AUD/JPY retraces its recent losses from the previous session, trading around 101.20 during early European hours on Monday.

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 EUR/GBP cross remains on the defensive around 0.8310 on Friday during the early European trading hours.

Japan equities were higher at the close on Friday, as gains in the Textile, Shipbuilding and Steel sectors propelled shares higher.

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

The EUR/USD pair plunges to near 1.0780 amid the renewed US Dollar (USD) demand on Friday during the Asian trading hours. Also, Donald Trump’s proposals to raise tariffs weigh on the Euro (EUR) against the Greenback.

Japan’s Finance Minister Katsunobu Kato on Friday that he “will closely monitor the impact of Trump's policies on Japan's economy.” Additional quotes Won't comment on forex levels.

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.

The Fed is widely forecast to lower the policy rate by 25 basis points to the range of 4.5%-4.75%.

The EUR/GBP cross extends its downside to near 0.8315 on Tuesday during the early European session.

EUR/USD holds ground after depreciating around 2% in the previous session, trading near 1.0740 during the Asian session on Thursday. The downside risk for the EUR/USD pair seems possible as the US Dollar may receive support from Trump trades following the victory of Republicans in the US election.

EUR/USD plummeted during the midweek market session, falling over 1.75% into the red and tumbling back below 1.0750 for the first time since July.

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

USD/JPY rose, as polls skewed in favour of Trump at point of writing. Pair was last seen at 153.91. Daily momentum is flat while RSI rose.