The EUR/USD pair hit a low near 1.08 in March. Economists at Scotiabank see limited EUR upside on ongoing war risks and monetary policy divergence.
The Federal Reserve is ratcheting up its hawkish tone.“We think the issues that would delay a hike this year remain relatively intact. Fuel and energy prices, though easing from their invasion surge, are still at levels that depress non-essential spending and should remain high with Russian sanctions maintained.”
“The odds of a resolution to the war have improved, but there is too much uncertainty for the ECB to back up the two 25 bps hikes priced in by markets; we think one hike is a safer bet. Meanwhile, the Fed is ratcheting up its hawkish tone.”
EUR/USD clings to modest gains near 1.0900.EUR/USD is trading in positive territory at around 1.0900 in the European session on Monday amid a modest selling pressure surrounding the greenback. Nevertheless, the risk-averse market environment is making it difficult for the pair to gather bullish momentum. Investors await Fedspeak.
GBP/USD pares early losses, holds above 1.3000.GBP/USD has managed to stage a rebound toward 1.3030 after having dropped to 1.2990 earlier in the day. The pair, however, looks vulnerable as safe-haven flows remain in control of financial markets in the European morning.
Gold bulls likely to target $1,966 resistance.Gold scaled higher through the early European session and shot to a two-week high on Monday. The Ukraine crisis, worries about rising inflation continued acting as a tailwind for the commodity.
Cardano price has suffered a recent pullback, as 3.4 million addresses were underwater. Nevertheless, analysts have predicted a recovery in Cardano price, and set target at $1.60.