Mondays are never easy, especially when seasons change. Spring has come, and hopefully, it has brought a fresh breeze to the forex market pairs. Let’s take a look at what happened throughout the day.
EUR/GBP rangebound below 0.8650
What’s going on with this pair? Well, the UK’s vaccine rollout continues to outpace the rollouts in other developed market countries. Over 20 million vaccines were distributed to citizens throughout the UK already. Meanwhile, Markets have to face the continued fall in new Covid-19 infection cases and deaths in the country.
Monday started quite roughly as EUR and GBP saw rangebound trade on Monday between 0.8620-0.8660 parameters. GBP, which had been amongst the best-performing currencies in the G10 earlier on during European trade. Following GBP/USD dropping back from Asia Pacific highs around 1.4000 into the low 1.3900s.
USD/CAD drops towards 1.2650
After hitting two-week highs in a row, USD/CAD saw a sharp pullback on March’s first trading day. The pair was trading in the 1.2650s, down about 0.7%. A risk-on market tone combined with broad strength in commodity prices is the main reason why the duo is performing the way it is on Monday. For now, as experts state, the bond markets are reasonably calming down, thus allowing markets to refocus on the positive macro backdrop of the stimulus.
AUD/USD extends recovery
Meanwhile, the AUD/USD rose further during the American session. Thanks to the US yields and higher equity prices, the pair was recovering after falling sharply on Friday to 0.7690.
GBP/JPY: Pound looks quite weak after being unable to recover
The pair was pretty shy on Monday; earlier in the morning, it rose to 149.30 and then pulled back, finding support at the 148.30 zones. One of the reasons for that was the rally in Wall Street, with the Dow Jones and the NASDAQ composite gaining by more than 2%. The decline in GBP/USD combined with small gains in USD/JPY kept the cross very limited.