The US Dollar retreats from Friday's NFP-inspired highs as improved risk appetite boosts equities and lifts EUR/USD above 1.1150 and GBP/USD toward 1.3400.
Gold rose nearly 5% for the week and starts Monday above $4,100, up about 1% on the day. OCBC says gold's resilience despite the sharp equity selloff is encouraging and that it may be regaining safe-haven appeal after the recent correction and reduced speculative positioning. The caveat that durability depends on equity performance limits conviction.
After the USD Index gained about 0.7% on Friday on NFP at 165K versus a 65K expectation, it is correcting lower early Monday but holds slightly above 102.00. Improving risk mood, with Dow Futures up 0.7%, weighs on dollar safe-haven demand. The move is a modest pullback, not a trend reversal, ahead of Tuesday's CPI.
EUR/USD fell nearly 0.7% on Friday, erasing weekly gains, as the dollar surged on the 165K October NFP print. Early Monday it recovers, trading marginally above 1.1150 as the dollar retreats. The rebound is a mild bounce after a sharp drop, with the data backdrop still dollar-friendly.
GBP/USD closed negative for two consecutive days and is now gathering recovery momentum toward 1.3400 early Monday as the dollar weakens across the board; the heat map shows GBP up 0.27% against USD. A Bank of England Governor Bailey speech later in the day is a near-term event for the pound.
USD/JPY gained about 0.5% on Friday to end the week in the green, but in the European morning on Monday it is struggling to keep its footing and declines toward 158.00. The pair tracks the dollar's broad retreat amid improved risk sentiment, though the shift is modest so far.
The US Dollar Index is correcting lower on Monday, holding just above 102.00 after a 0.7% gain on Friday driven by a 165K Nonfarm Payrolls print. Improved risk sentiment and positive US stock futures are weighing on the greenback, while gold climbs above $4,100. Markets are now looking ahead to Tuesday's US October Consumer Price Index data for further volatility.
Gold is gaining traction above $4,100 as analysts at OCBC argue it is gradually regaining safe-haven appeal after its recent correction, providing shelter amid equity market turbulence.
The dollar is giving back part of the strong gains it made after Friday's much stronger-than-expected jobs report, as improving market sentiment makes the greenback less attractive as a safe haven.
Yes, early Monday EUR/USD is clinging to marginal recovery gains above 1.1150 after falling nearly 0.7% on Friday and erasing its weekly gains.
A broad retreat in the US dollar after last week's jobs-driven rally is letting GBP/USD rise toward 1.3400, its first positive move after two consecutive down days.
Yes, after gaining about 0.5% on Friday, the pair is declining toward 158.00 in the European morning as the dollar retreats.