Markets are still half asleep as their participants celebrate Christmas.
EUR/USD is trading near the level of 1.0460. The euro managed to regain some losses on Friday mainly due to the weakening of the US dollar. USD slipped some points as investors took profits in the run-up to the Christmas holidays. US 10-year bond yields dipped following the Friday’s release of the US economic indicators (the household income data was not upbeat). The US dollar should not fall lower, as it remains to be well-supported thanks to the anticipation of a faster pace of the benchmark increases under Trump’s presidency.
USD/JPY fell to 116.95 on the weakening of the greenback. Today’s trading will be subdued as stock markets, precious/base metals options are shut for the Christmas holiday. European and American banks are closed as well. So, the yen may strengthen further in relation to the US currency snatching at a chance in the period of the US markets’ lull.
AUD/USD managed to recover on Monday after falling to 0.7160 following the news stating that Chinese President Xi Jinping was open to the deceleration in the economic growth of China. Aussie remains vulnerable to the price fluctuations in the commodity market and news flows from China.
GBP/USD edged down to 1.2265. The pound remains under pressure of uncertainty over the Brexit process.
