Analyzes

EUR/USD is showing signs of a fading rebound after hitting 1.1567, with technicals and Fed-ECB divergence pointing toward a likely return to 1.1260 support.

EUR/USD closed in positive territory for three consecutive days and registered moderate gains in the previous week. The pair trades in a narrow range at around 1.1550 in the European morning on Monday as investors remain focused on the political developments in the US.

Gold is building on Friday’s rebound in Asian trades on Monday, having briefly regained the $4,050 psychological barrier to hit ten-day highs. Traders await fresh cues on the end to the record US government shutdown amid mounting economic concerns.

The Pound Sterling (GBP) extended its downtrend and reached seven-month lows near 1.3000 against the US Dollar (USD), before GBP/USD buyers quickly jumped in and recovered some ground.

The EUR/USD pair ends the week with modest gains at around 1.1580 after falling to 1.1468, its lowest in over three months. The US Dollar (USD) maintained its positive tone throughout the first half of the week, but changed course on Thursday, although with modest downward strength.

Gold (XAU/USD) struggled to make a decisive move in either direction and spent the week fluctuating within a relatively tight channel at around $4,000.