Spot prices currently hover around the 1.2180 region as the GBP/USD pair recovers from part of Friday's decline. Despite this uptick, there is no strong bullish conviction or follow-through in the market. Meanwhile, gold prices have reversed an earlier dip experienced during the Asian session, aided by mild US Dollar selling observed on Monday.
In the financial markets, speculators are focused on the Federal Reserve's monetary policy, with predictions that the Fed might pause its current rate-cutting cycle, potentially capping the XAU/USD movement. A positive risk tone pervades the market, with traders keeping an eye on tax cuts and the future of the Federal Reserve. Amid these developments, Ripple has continued its rally, breaking above its symmetrical triangle pattern last week and sustaining momentum into Monday.
Cryptocurrency traders are particularly attentive to Bitcoin and Ethereum, which are currently retesting their key support levels. As Monday unfolds, there is anticipation of a rally ahead for both digital currencies. The trading environment is also influenced by US President-elect Donald Trump's return to the White House, as market participants await his inaugural address for potential new directions.