JPY lags G10 despite broad USD weakness – Scotiabank

EUR/USD remains well supported at the start of the week, now slipping back to the 1.1680 zone following earlier tops near 1.1700. Broad US Dollar weakness continues to do the heavy lifting, as fresh doubts about the Federal Reserve’s independence dent market confidence. With US CPI due on Tuesday, traders are likely to rein in risk and proceed with a bit more caution.

GBP/USD opens the week with a stronger tone, leaving behind part of the recent retracement and refocusing on the key 1.3500 yardstick. Indeed, Cable is being buoyed by fresh downside pressure on the Greenback, after renewed criticism from the US administration aimed at Fed Chair Powell rekindled concerns over the Fed’s independence.

Gold stays on a strong footing on Monday, chalking up a third consecutive day of gains and notching fresh record highs near the $4,620 mark per troy ounce. The rally is being fuelled by renewed, heavy selling in the Greenback, alongside a fresh flare-up of geopolitical tensions in the Middle East.

Bitcoin holds above $90,000 after briefly trading beyond $92,000 amid a DoJ criminal investigation into Fed Chair Jerome Powell. Ethereum remains range-bound between $3,000 support and $3,300 resistance, weighed down by declining retail demand.

Federal investigation of Powell and the Fed knocks risk sentiment. Concerns grow about Fed independence as gold hits a record. Are markets expecting Trump to scale back his rhetoric?

Monero hit a new all-time high of $598 on Monday as interest in privacy-focused coins grows. Retail traders lean into risk as XMR’s derivatives market strengthens, with futures Open Interest swelling to $177 million.