The dollar was down on Monday morning, but the focus is on the British pound and Japanese yen.
The pound moved upward from its fall during the previous session over increasing fears of a hard Brexit. In Japan, the ruling party will vote in a new leader later in the day, with the winner widely expected to replace incumbent Prime Minister Shinzo Abe.
The GBP/USD pair was up 0.22% to 1.2817, despite fears that the U.K. would exit from the European Union with no trade deal mounting and putting pressure on the pound. London acknowledged during the previous week that it could break international law “in a very specific and limited way.”
The USD/JPY pair inched down 0.04% to 106.04 ahead of the ruling Liberal Democratic Party’s vote for a new leader, due to take place later in the day. Chief Cabinet Secretary Yoshihide Suga is predicted to win in a landslide victory, with the successor to Abe expected to be appointed on Wednesday.
The EUR/USD pair is trading at around 1.1850, holding up its gains. Markets are optimistic about a coronavirus vaccine and shrugging off rising European cases.
Gold seesaw on Monday morning after a fall over the weekend. The falling U.S. dollar and retreating U.S. and European markets gave the precious metal an assist, with positive Asian markets however flattening the precious metal’s rise.
Oil prices rose on Monday as a tropical storm in the Gulf of Mexico prompted drillers to evacuate rigs and shut in production, although gains were muted by concerns about excess global supplies and falling fuel demand.
Looking forward, in the EU session, the Eurozone Industrial Production is due for release at 09:00 GMT. Amid absent relevant market-moving economic releases from the US, risk mood will be the main market driver for the day.
US Dollar remains depressed amid upbeat market mood – Eurozone Industrial Production Ahead
Published on 2020-09-14 08:45
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