The euro climbed back above $1.15 after a seven-week low of $1.139, supported by weaker US jobs data that fueled bets on a Fed rate cut in September, now seen as a 75% likelihood. Although Eurozone inflation held steady at 2.0%, slightly above forecasts, expectations for an ECB cut by December rose to 60%. Fresh US tariffs on EU exports added to the cautious mood, keeping EUR/USD in a tight range between resistance at 1.1660 and support at 1.1500.

Gold traded around $3,350 after a sharp rally on Friday, as investors sought safety with escalating trade tensions following Trump’s tariffs. Softer US labor data further supported rate cut expectations, keeping gold demand firm. The metal is now trading between resistance at $3,367 and support at $3,350. Brent crude slipped to $69 per barrel, marking a third day of losses after OPEC+ announced a considerable output increase to reclaim market share on growing geopolitical risks. With US sanctions threats and new tariffs clouding demand forecasts, oil remains under pressure, trading between resistance at $71.30 and support at $69.00.

The Japanese yen stayed pressured around 150.7 against the dollar, as Trump’s aggressive tariff measures and the BoJ’s cautious tone weighed on sentiment. Despite keeping rates steady, the BoJ flagged concerns over global trade risks, keeping USD/JPY locked between resistance at 151.50 and support at 149.60.

The offshore yuan held steady near 7.19 after China’s central bank pledged continued liquidity support and targeted lending to key sectors. With markets awaiting further stimulus signals, USD/CNH is trading in a narrow band, facing resistance at 7.2250 and support at 7.1850.

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