The global financial markets observed significant movements on Monday as the US Dollar maintained its strength, aided by a strong Non-Farm Payroll (NFP) report released last Friday. The USD's robustness was further bolstered by hawkish Federal Reserve expectations amidst ongoing policy uncertainties under former President Trump. Meanwhile, altcoins like Solana and Cardano experienced a continued pullback, extending their corrections after substantial declines in the previous week.
The technical outlook for altcoins projects a continuation of this pullback, with potential retracement positioning the market to climb higher toward the 1.2350 area. This zone is expected to act as a strong resistance point. In parallel, the US sanctions on Russian oil producers and tankers appear to support oil prices, potentially breaking out of the recent downward trend.
In the forex market, GBP/USD faced considerable selling pressure near the 1.2150 mark during the European session on Monday. The pair is shouldering the impact of sustained US Dollar demand, driven by expectations of a hawkish Federal Reserve. The Euro also struggled, trading in negative territory below 1.0250, having tested a low at 1.0200 amid dovish commentary from the European Central Bank (ECB).
Gold prices saw some positive movement on Monday, attracting dip-buyers and holding firm near a one-month high set on Friday. Despite elevated US bond yields and a bullish USD capping gains, XAU/USD found support amid ongoing market dynamics.
The US finance ministry's recent sanctions on Russian oil producers and tankers have added another layer of complexity to the market's landscape. These sanctions seem to support oil prices indirectly, contributing to a potential breakout from the recent falling trend. Risk-off flows remain vigorous as investors navigate the uncertain waters of hawkish Fed expectations and Trump's policy ambiguity.