FX update: Risk reappears to start the week

Stuart Cowell HFM

USD/CAD, H1

Commodity currencies have rallied out of early weakness as a risk-on theme took hold in markets, with Asian stock markets and European equity markets rallying on tentative signs in some locked-down countries that the coronavirus spread is being pushed from an exponential rate towards a linear rate, and with both France and Italy reporting a dip in the mortality rate. Japan’s Nikkei 225 and Australia’s ASX stock indices finished with 4%-plus gains. Chinese markets were closed for a public holiday in China today. The DAX & FTSE100 trade up over 3% currently.

Oil prices are down about 2%, as of the early London session. While Russia-Saudi talks on cutting output were delayed, the head of the Russian state wealth fund told CNBC said that a deal was “very, very close.” In the Forex realm, the biggest gainers out of the main currencies have been the Australian, New Zealand and Canadian dollars, while the biggest loser has been the Yen, which has seen is safe-haven premium unwind. AUDUSD, after initially dropping to an 11-day low at 0.5992, sprang back to an intraday high at 0.6048. AUDJPY rallied by over 1%. USDCAD retraced most of Friday’s gain in printing a low at 1.4113.

Sterling dipped in early trading on news that Prime Minister Johnson had been admitted to hospital 10 days after testing positive to the coronavirus. Cable posted a low at 1.2210 before recovering significantly to retake 1.2300. Friday’s low at 1.2206 was left unchallenged. Elsewhere, USDJPY gained over 0.5% in making a 10-day high at 109.24. EURUSD has been settled in a narrow range in the lower 1.0800s, above Friday’s 12-day low at 1.0773.

Author

Stuart Cowell

HFM

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, c

EUR/USD consolidates around 1.0900, bullish bias remains ahead of key US data

The EUR/USD pair is seen consolidating its strong gains registered over the past two days and oscillating in a narrow band during the Asian session on Tuesday. Spot prices currently trade around the 1.1900 mark, just below an over one-week high touched the previous day.

GBP/USD tilts bullish as markets barrel toward mid-week NFP print

GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300.

Gold retreats below $5,050 on profit-taking ahead of US data

Gold price attracts some sellers in the Asian session on Tuesday, falling back below $5.050. The precious metal edges lower amid improved risk sentiment and some profit-taking. Traders look to the US Retail Sales data and Fedspeak due later in the day ahead of Wednesday's Nonfarm Payrolls release.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

The market is buying everything again but is it dancing on a borrowed floor

The market has a short memory and a fast trigger finger. Last week’s liquidation barely cooled before risk came roaring back, pushing the S&P toward record territory and reinstalling Big Tech as the engine of choice. This is not discovery. It is re exposure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.