The Dollar Dips & Gold Glitters!

As we embark on a new week of trading, the US Dollar finds itself under pressure following disappointing economic data released at the end of last week. The impact of these figures reverberates across major currency pairs, shaping investor sentiment and market dynamics.

Here's a summary of key developments impacting major currency pairs:

???? USD:

The US March non-farm payrolls came in at +175K, below the expected +243K, alongside a lower-than-expected ISM April services index of 49.4 (versus an expected 52.0). While the Dollar saw a slight recovery before the weekend, its resilience against other major currencies remains uncertain.

???? EURO:

EUR/USD maintains a positive stance above 1.0750, benefiting from a weaker US Dollar amidst anticipation for Eurozone PMI and PPI data. The Euro's strength is further supported by expectations of a rate cut by the Federal Reserve in September, potentially diverging from ECB policy.

???? JPY:

USD/JPY broke its losing streak, rising above 153.50 during Monday's Asian session, supported by a rebounding Dollar and cautious remarks from US Treasury Secretary Janet Yellen regarding potential Japanese currency interventions. However, weaker US employment data may influence the pair's future performance.

???? AUD:

AUD/USD extends gains, driven by improved risk appetite and hawkish sentiment surrounding the Reserve Bank of Australia (RBA). Soft US jobs data further strengthens the Australian Dollar, despite fewer-than-expected job additions in April.

??GOLD:

Gold prices rebounded during Monday's Asian session, fueled by a weaker US Dollar and increased expectations of a September rate cut by the US Federal Reserve. However, easing tensions in the Middle East and a positive market sentiment may limit gold's upside potential.

As we navigate the currents of global economic data and market sentiment, the Dollar's performance remains a focal point for traders. Stay tuned as we monitor developments and their impact on currency markets throughout the week.

The weekly market update is published every Monday. If missed due to unforeseen circumstances, it will be posted the following day.

This is for informational purposes only and should not be interpreted as specific investment advice.

While the information is believed to be accurate, it is not guaranteed and is subject to change without notice.

Past performance does not guarantee future results.

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Special risks are inherent to currency fluctuations, foreign political and economic events

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