During the European session on Monday, the EUR/USD currency pair managed to cling to its positive territory just above the key level of 1.0850 mark. This move coincides with a slight improvement in global risk sentiment. At least one report has helped alleviate fears about US reciprocal tariffs, further adding to this change. The risk appetite has kept the pressure on the US Dollar. This move was unwarranted backing the pair in spite of negative German and EU PMI data.
The EUR/USD holds on to gains after a three-day drop. Buyers are playing a lucky hand dealt with the disparate monetary policy views of the Federal Reserve and the Bank of England. A recent breakout above the 200-day Simple Moving Average (SMA) adds to the bullish case with strong buyer conviction. The GBP/USD Cross uptrend is gathering steam and moving towards 1.2950 in the early European morning. This increase is further supported by the recent strength of the US Dollar.
Gold prices remain flat in the early European session on Monday. Despite this relative stability, they have shown zero signs of selling pressure and easily hold above that $3,000 psychological level. Regardless, gold prices are holding firm well above Friday’s swing low suggesting the bears are failing to gain substantial negative momentum.
With markets focused on the future, all eyes now shift to the UK/US PMI data releases. Residents and advocates across the state are looking forward to these reports. Of course, Bank of England Governor Andrew Bailey will be speaking next, and his perspective should help inform the prognosis for monetary policy.