EUR/USD drops to mid-1.04s. Economists at Scotiabank expect the pair to extend its decline toward the year-to-date low of 1.0350.EUR/USD ends its two-week consolidation period
“Risk-off sentiment, widening core-periphery spreads, a more hawkish Fed, and Eurozone growth concerns will likely offset augmented ECB hike bets in the near-term and keep the EUR on the backfoot as the current leg lower eyes the year-to-date low of 1.0350.”
“The EUR’s steep three-cent-plus drop from above the mid-1.07s last Thursday has wiped out a sizable share of its H2-May gains, ending its two-week consolidation period with a sharp slide that points it towards its year-to-date low of 1.0350.”
EUR/USD trades around 1.0430 amid lingering risk-aversion
EUR/USD dropped to 1.0417 in the early American session on Monday. With Wall Street’s main indexes suffering heavy losses after the opening bell, the dollar continues to gather strength ahead of the US Federal Reserve monetary policy decision.
GBP/USD falls to a fresh two-year low of 1.2122, bounces modestly
GBP/USD remains under pressure, despite the bleeding paused. The broad-based dollar strength on risk-aversion and the disappointing data releases from the UK force the pair to stay on the back foot at the start of the week.
Gold: Lower lows hint at a bearish continuation
Gold edged lower on Monday as investors rushed into the greenback in a risk-averse environment. XAU traded as low as $1,823.39, now changing hands at around $1,830. Financial markets are all about skyrocketing US Treasury yields after the country released its latest inflation figures on Friday.