EURUSD

EUR/USD is staying on the defensive near 1.0750 while consolidating Friday’s pullback early Monday. The main currency pair is on a cautious footing, courtesy of a broadly firmer US Dollar and US Treasury bond yields. Markets stay calm ahead of the Fed, ECB storm.

 If the pair continues the uptrend to the range of 1.0804, it is expected to continue the uptrend to the range of 1.0820.

On the other hand, If the pair continues the downtrend to the range of 1.0732, it is expected to continue the downtrend to the range of 1.0716.

USDJPY

The USD/JPY pair gains some positive traction for the second successive day and climbs back above mid-139.00s during the Asian session on Monday. The Japanese Yen (JPY) weakens a bit on the first day of a new week in reaction to the dismal domestic data.

if the pair continues the uptrend to the range of 140.25, it is expected to continue the uptrend to the range of 140.77.

On the other hand, If the pair continues the downtrend to 138.85, it is expected to continue the downtrend to 138.33.      

GBPUSD

GBP/USD is off the highs, defending minor bids below 1.2600 in the early European hours. The pair is struggling for the upside traction, as the US Dollar holds its recovery gains amid a cautious market mood. All eyes remain on the US CPI data and the Fed decision.

If the pair continues the uptrend to the range of 1.2602, it is expected to continue the uptrend to the range of 1.2657.

On the other hand, if the pair continues the downtrend to 1.2513, it is expected to continue the downtrend to 1.2492.

AUDUSD

The AUD/USD pair enters a bullish consolidation phase on the first day of a new week and oscillates in a narrow trading band, just below mid-0.6700s or a one-month high touched on Friday. Bulls still await a sustained strength beyond the 100-day Simple Moving Average (SMA) before placing fresh bets and positioning for an extension of the recent upward trajectory witnessed since the beginning of the current month.

If the pair continues the uptrend to the range of 0.6729, it is expected to continue the uptrend to the range of 0.6766.        

On the other hand, if the pair continues the downtrend to 0.6671, it is expected to continue the downtrend to 0.6650.

XAUUSD

Gold pares intraday losses, after posting a two-week uptrend, as the key week comprising the top-tier central bank announcements and US inflation data loom. That said, the market’s cautious optimism fails to keep pressuring the US Dollar amid reassessment of the previous dovish bias about the Fed.

If the pair continues the uptrend to the range 1980.18, it is expected to continue the uptrend to the range of 1987.21.

On the other hand, if gold continues the downtrend to the range of 1954.21, it is expected to continue the downtrend to the range 1947.18.

Major currency pairs fluctuate in narrow ranges at the beginning of the week as investors gear up for this week’s key macroeconomic events. There will not be any high-impact data releases featured in the US economic docket on Monday. On Tuesday, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for May ahead of the Federal Reserve and the European Central Bank’s (ECB) policy announcements on Wednesday and Thursday, respectively.

US stock index futures trade modestly higher in the European morning and the benchmark 10-year US Treasury bond yield holds steady near 3.75%, reflecting a neutral risk mood. The US Dollar Index, which gauges the US Dollar‘s (USD) performance against a basket of six major currencies, moves sideways at around mid-103.00s.

EUR/USD lost its traction on Friday and erased a large portion of the gains it recorded on Thursday. Nevertheless, the pair snapped a five-week losing streak. Early Monday, EUR/USD stays calm near 1.0750.

GBP/USD gained more than 100 pips last week. In the European morning, the pair clings to small daily gains while holding comfortably above 1.2550. On Tuesday, the UK’s Office for National Statistics will release the jobs report.

USD/JPY edges higher early Monday but stays below 140.00. On Friday, the Bank of Japan (BoJ) will unveil monetary policy decisions. “It’s still too early to call that this inflation has been sustainable and stable,” Bank of Japan (BoJ) policymaker Masazumi Wakatabe told Bloomberg earlier in the day.

Gold price corrected lower on Friday but closed the week in positive territory. XAU/USD moves up and down in a tight channel around $1,960 in the European session.

USD/CAD recovered modestly following the disappointing jobs report on Friday but failed to gather further bullish momentum. The pair stays on the back foot below 1.3350 on Monday.

Bitcoin continued to edge lower over the weekend and ended up losing more than 4% last week. BTC/USD inches lower early Monday and stays below $26,000. Ethereum suffered heavy losses on Sunday and closed the week below $1,800. ETH/USD remains under modest bearish early Monday and trades near $1,750.