BNY Head of Markets Macro Strategy Bob Savage notes Gold remains elevated above $5,000 as it continues to correlate positively with equities, supported by Dollar weakness.

The Euro (EUR) is trading firm against the US Dollar (USD) at the week's opening, trading at levels right above 1.1870 at the time of writing on Monday.

Gold (XAU/USD) appreciates for the second consecutive month on Monday, favoured by moderate US Dollar (USD) weakness. The yellow metal maintains the immediate bullish trend intact, but so far, is failing to find significant acceptance above the $5,000 psychhological level.

Commerzbank’s Michael Pfister highlights that weaker-than-expected Canadian labor data, including job losses and a participation-driven drop in unemployment, underline fragilities in Canada’s economy.

Danske Bank’s Danske Research Team says Japanese Prime Minister Sanae Takaichi’s coalition secured a supermajority, giving her a strong mandate for tax cuts and higher military spending. The result drove Japanese stocks to record highs and initially weakened the Japanese Yen.

Gold (XAU/USD) holds firm on Monday, steadying after a turbulent end to last week as supportive fundamentals continue to underpin demand. At the time of writing, XAU/USD is trading around $5,010, up nearly 1.15% on the day, with the intraday high marked near $5,047.

ING’s Chris Turner argues that UK political uncertainty around Prime Minister Keir Starmer, following the resignation of a close ally and scrutiny over a key diplomatic appointment, is adding pressure on Sterling and Gilts.

Mexico 12-Month Inflation below expectations (3.82%) in January: Actual (3.79%)

Mexico Headline Inflation came in at 0.38%, below expectations (0.41%) in January

Mexico Core Inflation above forecasts (0.59%) in January: Actual (0.6%)

RBC Economics economists Nathan Janzen and Abbey Xu expect January U.S. headline inflation to slow on lower gasoline prices, while core inflation holds steady near 2.6%, keeping it above the Federal Reserve’s 2% target.

The US Dollar (USD) has regained some of the ground lost against the Japanese Yen (JPY) following Prime Minister Takaichi’s landslide victory in Sunday’s elections and has returned to the 156.70 area at the time of writing, after bottoming at 156.20 earlier on the day.The pair, however, remains 0.3%

Deutsche Bank economists Michael Kirker, Maria Contreras and Kuhumita Bhattacharya say the ECB kept rates at 2% and maintained a balanced risk assessment, despite some hawkish nuances. They highlight domestic resilience, anchored inflation expectations and a data-dependent stance.

Portugal Global Trade Balance down to €-7.798B in December from previous €-7.543B

TD Securities’ Global Strategy Team assesses Canada’s January Labour Force Survey as a modest unwind of prior strength, with employment falling but unemployment also declining on weaker supply.

EUR/GBP trades higher at the start of the week and is hovering around 0.8720 on Monday at the time of writing, up 0.38% on the day.

The US benchmark West Texas Intermediate (WTI) Oil trades moderately higher on Monday, changing hands at $63.30 per barrel at the time of writing, but trapped within previous ranges and significantly below the $66.25 highs witnessed in late January.

Wells Fargo’s Economics Group highlights softening US labor demand, with JOLTS openings at their lowest since 2020 and risks that layoffs could rise as firms cut costs. The team expects January Nonfarm Payrolls at 80K and unemployment at 4.4%.

Societe Generale analysts report that several ECB officials have turned more dovish, emphasizing downside inflation risks and potential disinflation from rising Chinese imports. Others warn that a sharp Euro appreciation could prompt a policy response.

Investor morale in the Eurozone improved sharply in February, with the Sentix Investor Confidence Index rising to 4.2 from -1.8 in January. This marked the third consecutive monthly increase and the highest reading since July 2025.

Rabobank’s Benjamin Picton notes that despite supportive Japanese fiscal policy and expectations for loose Bank of Japan settings, the Japanese Yen has firmed slightly, leaving USD/JPY trading softer.

Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $81.78 per troy ounce, up 5.54% from the $77.48 it cost on Friday.

Eurozone Sentix Investor Confidence up to 4.2 in February from previous -1.8

Japan Prime Minister Sanae Takaichi said on Monday that her government is pushing for a shift toward a more proactive fiscal stance, including a temporary suspension of the sales tax on food.

The Aussie Dollar appreciates for the second consecutive day against a softer US Dollar, approaching the top of February’s trading channel at the 0.7050 area.

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling (GBP) may weaken amid a fresh government crisis in the United Kingdom (UK).

Gold (XAU/USD) extends its sideways consolidative price move above the $5,000 psychological mark through the first half of the European session on Monday, though it remains below last week's swing high amid mixed cues.

Societe Generale analysts Michael Haigh, Ben Hoff and Jeremy Sellem highlight how Tether’s expanding Gold holdings have become a major force in the Gold market. They stress that Tether’s flows can rival or exceed those of ETFs and some central banks.

Singapore Foreign Reserves (MoM): 417B (January) vs 409.3B

TD Securities Senior Macro Strategist Alex Loo argues that despite Japan’s political shift under PM Takaichi, the Japanese Yen is likely to underperform, with markets eyeing the 160 level in USD/JPY as a key trigger for Ministry of Finance action.