The precious metal builds on last week's gains. US Dollar Index extends slide on Monday. Trading volume thins out in the NA session. After closing the previous week $8 higher, the troy ounce of the precious metal started the week on a strong note and recorded steady gains to touch its highest level since April at $1327.50. However, the President's Day holiday in the U.S. weighed on the trading volume in the last hours and caused the XAU/USD pair to go enter a consolidation stage. As of writing, the pair was up 0.35% on the day at $1236. Although the market sentiment seems to have improved amid rising hopes for this week's talks in Washington to lead to a final trade deal following President Trump's optimistic tweet over the weekend, the safe-haven gold didn't have a difficult time finding demand. The economic hardship the euro area is facing and the uncertainty surrounding Brexit negotiations are two of the main reasons why investors are still looking for a..

Pound outperforms despite UK political headlines. GBP/USD holds firm above 1.2900, 150 pips above last week lows. The GBP/USD pair is consolidating gains and remains near the highs, holding above 1.2900. Earlier today, it climbed to 1.2937, the strongest level since last Wednesday. During the last hours, it has been moving sideways, in a small range between 1.2910 and 1.2932. The pound is holding firm to daily gains and is the top performer among majors. The move higher took place amid a slide of the US dollar across the board. Political development in the UK had no impact on the pound. Today, seven members of the Parliament quit from the Labour Party to form an independent group. Regarding Brexit, the uncertainty still prevails. Comments from Minister David Lidington, saying that the UK government might be able to re-negotiate the deal with the EU or delay Brexit, favored the pound modestly. Volatility is expected to continue subdued in the wake of the President's Day..

AUD/USD is correcting the weekly bearish outlook, climbing from the Feb lows down in the 0.7050s but capped a figure higher. AUD/USD is currently trading at 0.7140, from a high of 0.7160 and up from a low of 0.7132. With the US out for President's day, the markets are quiet and offer a time to reflect and plan ahead. We have the Minutes of the RBA Policy meeting from the 5 February, although this is likely to be a non-event. The switch-to neutral /dovish Governor speech the next day was enough for markets to take a view on the Aussie, especially accompanied by the February 8 Statement on Monetary Policy that slashed growth forecasts and delayed yet again the return to target for core inflation. "However, the actual policy statement released on Tuesday was rather upbeat (and misleading for the markets) suggesting that all was on track, just a small delay compared with expectations late last year," analysts at TD Securities noted and we will perhaps see why from the minutes to..

The ECB's chief economist Peter Praet recently crossed the wires saying that the ECB could adopt rate guidance if the economy were to slow sharply. Key quotes (via Reuters) What counts for us is medium-term and we see positive and negative factors there. A rebound is likely, but it is too early to say by how much. Biggest problem by far is political uncertainties persisting for so long, related to protectionism, Brexit. Question is how financial sector would react; there's risk banks could act even more pro-cyclically than usual. TLTROs have been a very useful tool to deal with impairments in transmission of monetary policy, are part of toolbox. We do need to monitor the transmission of monetary policy through banking system carefully. If euro area economy were to slow more sharply, we could adapt guidance on rates, complemented by other measures. Further asset purchases may not be needed at all to ensure that financing conditions are appropriate. It may make sens..

EUR/USD daily chart EUR/GBP is trading in a sideways trend below the 200-day simple moving averages (SMAs). This Monday, on US President’s Day, the financial markets might offer limited moves. EUR/GBP 4-hour chart EUR/GBP is trading between the 50 and 100 SMAs on the 4-hour chart suggesting a sideways market in the medium-term. EUR/GBP 30-minute chart EUR/GBP is trading below the main SMAs suggesting bearish momentum in the short-term. EUR/GBP is rejecting 0.8760 resistance. On the way down next supports are seen near 0.8740 and 0.8720 figure. Resistance is seen at 0.8760 and 0.8785 level. Additional key levels EUR/GBP Overview: Today Last Price: 0.8755 Today Daily change: -9 pips Today Daily change %: -0.10% Today Daily Open: 0.8764 Trends: Daily SMA20: 0.8753 Daily SMA50: 0.8885 Daily SMA100: 0.8857 Daily SMA200: 0.8865 Levels: Previous Daily High: 0.8834 Previous Daily Low: 0.8751 Previous Weekly High: 0.8842 Previous Weekly Low: 0.8743 Previous Monthly High: 0.9119 P..

Trade optimism helps antipodeans stay strong. US Dollar Index drops to 96.70 area. The NZD/USD pair gained traction in the early trading hours of the Asian session and reached its highest level in 12 days at 0.6893 but struggled to preserve its bullish momentum. With markets quieting down in the last couple of hours amid the thin trading volume, the pair has gone into a consolidation phase and was last seen trading at 0.6872, adding 0.1% on the day. Over the weekend, U.S. President Trump, via Twitter, said that big progress was being made on many different fronts in China trade talks ahead of this week's round of negotiations in Washington and helped trade-sensitive currencies such as the AUD and NZD start the week on a positive note. Additionally, New Zealand PM Jacinda Arden told reporters that the relationship with New Zealand and China were 'robust and mature', to provide an additional boost to the kiwi. On the other hand, the greenback struggled to recover the l..

The demand for the buck remains subdued today. US-China trade hopes keep weighing on USD. US markets are closed due to the President’s Day holiday. The greenback, in terms of the US Dollar Index (DXY), remains on the defensive and so far unable to pick up any serious pace around the 96.70 region. US Dollar Index weak on risk-on mood The index remains depressed and under pressure, prolonging the correction lower from Friday’s fresh yearly peaks in the vicinity of 97.40, always against the backdrop of thin trade conditions due to the holiday in the US markets. In fact, the greenback is down for yet another session today and flirting with the 10-day SMA in the 96.70 region. The downside pressure in the buck has been intensifying as of late in light of the recent progress at the US-China trade talks, which are set to resume later this week in Washington. In the US calendar, the next significant event will be the publication of the FOMC minutes on Wednesday, seconded by the key Phill..

USD/CAD daily chart On the daily time-frame, USD/CAD is trading between the 50 and the 100-day simple moving averages (SMAs) suggesting a sideways market. This Monday, US President’s Day, might offer limited moves in the financial markets. USD/CAD 4-hour chart USD/CAD is trading between the 100 and 200 SMAs suggesting bearish momentum in the medium-term. USD/CAD 30-minute chart USD/CAD is trading below its main SMAs suggesting a bear market in the short-term. Bears will likely try to reach 1.3200 figure to the downside. Resistance is seen at 1.3240 and 1.3270 level. Additional key levels USD/CAD Overview: Today Last Price: 1.3235 Today Daily change: -12 pips Today Daily change %: -0.09% Today Daily Open: 1.3247 Trends: Daily SMA20: 1.3241 Daily SMA50: 1.3363 Daily SMA100: 1.3245 Daily SMA200: 1.3148 Levels: Previous Daily High: 1.3314 Previous Daily Low: 1.3245 Previous Weekly High: 1.3341 Previous Weekly Low: 1.3196 Previous Monthly High: 1.3664 Previous Monthly Low: 1.3..

Irish foreign minister Simon Coveney was out on the wires recently, reiterating that the EU is unwilling to reopen the Brexit withdrawal agreement. Key quotes (via Reuters) No-deal Brexit would be “crazy” outcome of three years of Brexit negotiations. UK parliament’s asks must be reasonable. EU cannot remove backstop insurance and replace it with ‘wishful thinking’. Time-limit to backstop would kick issue down in time, cannot be accepted. Ireland spending hundreds of millions of euros preparing for no-deal Brexit. Declaration on future ties is the area for manoeuvre on backstop assurances. ‘We want to find ways’ to help pm may ratify Brexit deal in parliament.

US Dollar Index continues to push lower below 97. European equity indexes stay quiet on Monday. President's Day holiday in the United States. The USD/JPY pair is trading in a narrow band on Monday as markets are struggling to identify the next catalyst. As of writing, the pair was up 0.1% on the day at 110.58. The US Dollar Index, which closed the previous week on a negative note on dovish Fed expectations, extended its drop on Monday and was last down 0.23% on a daily basis at 96.70. Last Friday, Atlanta Fed President Bostic said that the Fed was in no rush to arrive at neutral rates and San Francisco Fed President Daly told The Wall Street Journal that there was a good chance that the Fed could refrain from hiking rates in 2019. In the remainder of the session, the pair is likely to continue to move sideways as the President's Day holiday in the U.S. is expected to weigh on the trading volume. Later in the week, the FOMC's meeting minutes, which is scheduled to b..

The offered bias in the greenback leads the recovery in spot. US-China trade talks due to resume later in the week. Risk-on sentiment continues to prevail in the global markets. EUR/USD keeps the positive performance well and sound at the beginning of the week and is now navigating the upper end of the range in the 1.1330/35 band, or new session highs. EUR/USD looks to trade, ECB Optimism on an eventual deal in the US-China trade negotiations remains on the rise and keeps the sentiment in the risk-associated universe well propped up for the time being. Further support for the riskier assets comeS from the markets’ view than some G10 central banks could postpone any intentions of start some sort of tightening in the next months, all against the backdrop of a generalized perception of a global slowdown. Data wise in Euroland, the ZEW survey is coming up tomorrow, advanced February PMIs on Thursday as well as the publication of ECB minutes. Across the pond, the FOMC minutes are exp..

Krishen Rangasamy, analyst at National Bank Financial, suggests that in the US, the price of imports has failed to take off despite Trump’s tariffs resulting partly in the inflation remaining well under wraps. Key Quotes “The import price index actually fell for a third consecutive month in January according to latest data from the BLS. So much so that, on a year-on-year basis, the import price of non-petroleum goods is now in negative territory for the first time in years. So, why are import prices falling again?” “The U.S. dollar’s surge in 2018 has clearly helped cap the price of imported goods. As today’s Hot Charts show, the declining price of imports from China coincides with the yuan’s depreciation against the USD.” “The lack of inflation pressures, both domestic and imported, and a flat yield curve arguably restrain the ability of the Federal Reserve to tighten U.S. monetary policy much further.”