USD slide/CAD rebound can extend – Scotiabank

EUR/USD remains under moderate selling pressure below 1.1700 in the European session on Monday. The pair weakens amidst resurgent haven demand for the US Dollar, following the US military intervention in Venezuela and the capture of President Nicolas Maduro. EU Sentix data and geopolitics remain in focus. 

GBP/USD is keeping its offered tone intact below 1.3450 in European trading on Monday. Markets remain wary and prefer safety in the US Dollar amid the US-Venezuela geopolitical escalation, exerting downside pressure on the pair. Traders now await the US ISM Manufacturing PMI for fresh trading impetus. 

Gold builds on its intraday move higher beyond the $4,400 mark and climbs to a four-day high during the early European session amid the global flight to safety. Geopolitical tensions escalated after the US launched land strikes on Venezuela, leading to the capture of its President, Nicolás Maduro, and his wife.

Bitcoin, Ethereum, and Ripple extended their rallies on Monday, gaining more than 4%, 6%, and 12%, respectively, in the previous week. The top three cryptocurrencies by market capitalization could continue to outperform, with bulls in control of the momentum.

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Meme coins such as Dogecoin, Shiba Inu, and Pepe are leading the cryptocurrency market rally driven by the US cross-border operation to capture Venezuelan President Nicolás Maduro. Dogecoin extends its gain for the fifth consecutive day while SHIB and PEPE take a pause.