We start the week with USD and oil prices trading higher, equities off and Treasury yields. The USD remains strong after last Friday’s employment report which increased the chance of the FED keeping interest rate steady at the next meeting. No economic data set to be released today but key inflation figures (CPI/PPI) are set to be released in the coming days.
In other news. Biden and Netanyahu discuss Gaza ceasefire talks as momentum builds. Zelensky says he is willing to hand over two captured North Korean soldiers to Pyongyang in exchange for Ukrainian prisoners of war in Russia. Tougher U.S. sanctions to curb Russian oil supply to China and India.
In currency markets. As we start the week, the USD is off against the CNY (0.02%) and JPY (0.25%). While strengthening 0.6% against the THB, 0.28% against the MYR. The USD is trading higher against the ZAR down 0.19% and the MXN 0.33% respectively.
In commodity markets. Oil prices continue its rise trading 2.3% higher. After a recent run-up both Gold and Silver have sold off 0.22% and 1.15% respectively. Copper on the other hand is trading 0.13%. In Agricultural Wheat is up 1.7% and Soybean up 0.31%
Current level USD Index 109.59 Up 0.24%
The USD/CAD continue to remain under pressure despite higher oil prices. Last Friday’s strong US employment figures have led to a belief that the FED will cut only once in 2025. As with most countries, Canada is awaiting how Trump’s protectionism platform will affect the Canadian economy.
Current level USDCAD 1.4437 Up 0.17%
The EUR/CAD continues to remain under pressure losing more than 1% in the last 5 trading session.
Current level EURCAD 1.4727 Down 0.27%
The EUR/USD remains under pressure as market participants are now expecting the FED to cut interest rates once in 2025 while the ECB’s Lane said that more rate cuts are likely to ensure that the economy does not grow too slowly. The potential of a global trade war is limiting the EUR’s rebound.
Current level EURUSD 1.0200 Up 0.12%
The GBP/EUR continues to trend lower reaching level not seen since October. The mounting concerns over UK stagflation as well as the increase in borrowing cost are keeping a lid on the GBP.
Current level GBPEUR 1.1894 (.8407) Down 0.09%
The GBP/USD weakness continues as rising UK borrowing cost could force the government to cut public spending. The rise in UK bond yield is partially driven by the uncertainty over Trump’s incoming trade policies. The next release of important economic data is expected on Wednesday, where UK CPI will be released.
Current level GBPUSD 1.2197 Down 0.68%
For clients based in the European Economic Area, payment services for Payments International Inc. are provided by CurrencyCloud B.V..Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam.CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (RelationNumber: R142701).
For clients based in the United States, payment services for Payments InternationalInc. are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation(FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number:31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York , NY10011.
For clients based in the United Kingdom and rest of the world, payment services for Payments International Inc. are provided by The Currency Cloud Limited. .Registered in England and Wales No. 06323311. Registered Office: StewardshipBuilding 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic MoneyRegulations 2011 for the issuing of electronic money (FRN: 900199)
