– the EURUSD is fluctuating between 1.3093/1.2971 range;
– the USDJPY dropped slightly at the open to support at 97.32;
– GBPUSD is taking some upward steps;
– AUDUSD is also advancing this morning, from 1.0274 to current level at 1.0323.
The US dollar appears to be broadly losing, with its index falling to 82.15, following Friday’s disappointing GDP growth, increasing expectations of more monetary easing.
In Europe, expectations for rate cut by ECB are mounting for next Thursday, with central bank likely to reduce them from 0.75% to 0.50%, placing a cap on bullish potential for EURUSD as greenback weakens.
During the weekend Enrico Letta managed to form a new coalition government in Italy ending a 2-month political gridlock, likely underpinning the common currency. Ten year Italian bond yield dropped back below 4% on Monday morning.
The Japanese Yen strengthened. Today’s Yen trading would be thin and could provide false signals. USDJPY declined to new 2-week low at 97.35 and retraced slightly, was lastly seen at 97.90.
Elsewhere in Asia, S&P ASX 200 index rose by 0.56% to 5,125.80 pushing the AUDUSD to increase, helped by US dollar broad weakness.