EUR/USD shows marginal gains on Monday, trading near 1.1650, after giving away most ot the daily gains during the European morning session.

Oil prices are trading nearly $1 lower on the day on Monday, as the commodity’s reversal from Friday’s highs above $60.00 extends to session lows below $59.20 ahead of the American session opening times.

Silver (XAG/USD) remains stable at the start of the week, trading around $58.40 on Monday at the time of writing, up 0.1% on the day. The white metal extends its consolidation phase, as investors avoid taking fresh positions before the Federal Reserve’s policy announcement on Wednesday.

Gold (XAU/USD) kicks off the week on a quiet note, with traders reluctant to take fresh positions ahead of the Federal Reserve’s (Fed) interest rate decision on Wednesday. At the time of writing, XAU/USD is trading around $4,210, extending its consolidation phase within the familiar one-week range.

USD/CNH is trading heavy under 7.0700. China’s November trade data continues to point at weak domestic demand activity and decoupling with the US.

The US Dollar extends gains for the second consecutive day against the Yen on Monday, and tests December’s highs, at the 155.50 area, as the safe-haven Japanese Yen loses ground against its main peers in an otherwise calm trading session.Monetary policy expectations remain the primary market mover w

USD/JPY climbs as markets price in a 25bps Bank of Japan (BOJ) hike on December 19, supported by fiscal stimulus and upside risks to Japanese wage growth, though fair value suggests a longer-term move toward 140, BBH FX analysts report.

The Pound Sterling (GBP) trades slightly lower against its major currency peers at the start of the week, hovering at around 1.3320 against the US Dollar (USD).

Since the US has effectively halted its financial assistance to Ukraine, it has fallen to the European Union to support the Kyiv government financially. And this aid is urgently needed — Ukraine’s funds are expected to run dry as early as April.

European Central Bank (ECB) policymaker Peter Kazimir said in the European session on Monday that he doesn’t see any reason of monetary policy adjustment in the policy meeting this month.

EUR/USD is steady near 1.1650 as ECB’s Isabel Schnabel signals comfort with markets pricing in a potential future rate hike, BBH FX analysts report.

US Dollar (USD) is likely to trade between 7.0620 and 7.0740. In the longer run, outlook for USD remains negative; the next level to watch is 7.0400, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The US Dollar (USD) is mixed this morning, consolidating just above last week’s lows as investors await the New York Fed’s November survey of consumer expectations, BBH FX analysts report.

The Indian Rupee (INR) trades lower against the US Dollar (USD) at the start of the week.

After disappointing in October, Chinese exports returned to their growth path in November, rising again by 5.9% year-on-year.

The Euro is picking up from six-week lows around 0.8725 on Monday, but remains capped below a previous support area at 0.8750 so far.

US Dollar (USD) is likely to trade in a range between 154.80 and 155.80. In the longer run, for a sustained decline, USD must first close below 154.65, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Although the major US labour market report was not published on Friday, figures from Canada were released. With roughly 53,000 jobs added in November, the figures were positive once again.

There is scope for New Zealand Dollar (NZD) to test 0.5800 before the risk of a pullback increases. In the longer run, the price action continues to suggest a higher NZD; the levels to watch are 0.5800 and 0.5835, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Reserve Bank of Australia (RBA) is widely expected to keep interest rates unchanged, with markets already pricing in the decision ahead of tomorrow’s announcement.

EUR/JPY trades around 181.10 on Monday, up 0.15% at the time of writing, as fundamental momentum turns more favorable for the Euro (EUR) at the start of the week.

Australian Dollar (AUD) is likely to trade in a higher range of 0.6625/0.6655. In the longer run, further AUD strength is not ruled out; it remains to be seen if 0.6685 is within reach, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

China posted another strong export reading, highlighting unexpectedly firm global demand even amid a turbulent year for tariffs, ING's FX analyst Chris Turner notes.

Gold is holding near $4,200/oz as expectations for a December Fed rate cut and a weaker US Dollar (USD) continue to underpin prices, though soft physical demand may cap further gains.

Pound Sterling (GBP) is likely to trade in a range between 1.3290 and 1.3360. In the longer run, GBP is expected to continue to rise, potentially to 1.3410, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

A dovish-leaning Fed and upcoming policy shifts abroad could weigh on the US Dollar (USD) into 2026, with key central bank meetings set for this week.

The AUD/JPY pair demonstrates strength near a fresh 16-month high around 103.20 during the European trading session on Monday. The cross trades firmly as the Australian Dollar (AUD) outperforms its peers ahead of the monetary policy announcement by the Reserve Bank of Australia (RBA) on Tuesday.

Euro (EUR) is likely to trade in a range between 1.1625 and 1.1665. In the longer run, upward momentum is starting to slow; a break below 1.1615 would indicate that EUR is not advancing further, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The Pound has opened the week on a mild positive note, while the Japanese Yen drops across the board amid the positive market mood. The pair is trending higher, after bouncing at 206.20 lows on Friday, with bulls eyeing 17-month highs, at 207.35.The fundamental context remains pound-supportive.

The Eurozone Sentix Investor Confidence Index improves significantly to -6.2 in December from -7.4 in November.